business process

Setting up a customer-focused business for success

Ask any successful mortgage broker on the MPA Top 100 list, and most of them will say that the majority of their business is generated from referrals. 

Referrals and word-of-mouth marketing form the backbone of most mortgage broking businesses. 

Which makes a mockery of why regulators and Royal Commissions cannot get their heads around commissions and the conflict of interest issue.  Why is it that the mortgage broker share keeps increasing?  At the most recent MFAA report, the market share for mortgage broker sourced mortgages has increased to 59.7%. 

The reality is that mortgage brokers only become successful if they focus on the customer.  There may be inherent conflicts of interest or commissions from some lenders that are higher than others, but if the broker wants to become successful, they must put their customers first.  And when that happens, those mortgage brokers will generate more referrals and repeat business.

The corollary is that those same referrals ensures that the customer’s best interests are looked after first.  Because if those same customers are not looked after, they will not be giving referrals to you.

And on the evidence of things, more customers are seeking mortgages from mortgage brokers.

As a mortgage broker, how do you set up your business for referrals and repeat business?  Here are my top 3 tips.

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Want to know the secret of converting more leads?

There is no "one size" that fits all your clients

It’s all about having the right PROCESS. And not just one generic process, but a process for each client type.

That is what makes all the difference!

In our game, having a ‘one size fits all’ qualification process won’t cut it.

Think about it: Your qualification process for a First Home Buyer should be completely different to an investor, an upgrader, or a refinance client.

I recommend you document key points that are relevant for each client type. This way you have a reference point for when an enquiry is received, which in turn will help you become more efficient.

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Why you need to focus on your existing customers

You should have a Customer For Life approach in your business

Photo by Matheus Ferrero on Unsplash

The mortgage industry traditionally is focused on acquiring new customers.

All you need to do is take a look at the way banks and lenders advertise their latest home loan rates, and how they treat their customers.

Here is one I found amongst a prominent bank’s fine print about the interest rates advertised:

Interest rate discounts for LVR 90% or less are available only for new owner occupier borrowings and new to bank security property.

The corollary being that if you are an existing customer, these new rates being advertised are not for you.

The message being that: to get a better deal, you should refinance or complain.

Not very customer-centric is it? Despite what the bank is no doubt try to promote.

And as a mortgage broker, finding new customers is a great rush. It reminds us of the days when we were hunter-gatherers, the thrill of the chase, the high-fives and fist-bumps, plus the winning feeling when your customer says yes to going ahead.

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How to market with a (almost) zero marketing budget

Marketing is a race without a finishing line


One of the biggest challenges that any new mortgage business will face is how to acquire customers.

This challenge is faced by more established businesses as well.

I would contend that marketing is a never-ending activity, and that all businesses must engage in, or they will not survive.


What is marketing?

Most mortgage broking businesses use marketing as a tool to acquire new customers.  Whilst this is certainly true for start-ups, more established businesses will need to continue to market to their existing customers – either to retain their custom or to have them become advocates for their services.

“Marketing is a race without a finishing line” – Philip Kotler

With the onset of new technologies and new competition in the finance and mortgage market, the businesses have to ensure that their marketing activities remain fresh and relevant to their audience.

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Be clear about the services you provide

Credit Advisers or Mortgmaster-classage Brokers must be clear on, and able to articulate, what they do for their clients.

Good mortgage brokers have a formal client engagement process, which means that they are able to communicate the services they provide, the value their client receives, and sometimes – how much they charge.

A great way to do this is to utilise your Credit Guide. Under the National Consumer Credit Protection (NCCP) Act, the law stipulates the minimum requirements that a Credit Adviser must disclose. And instead of reinventing the wheel, use your Credit Guide to communicate what you do.

Not only will this allow you to meet your compliance requirements, but it will also document what your value proposition is.