Mortgage brokers who provide excellent service and simplify the complicated home loan process are well-placed to win business and pick up referrals.
Those are two of the main conclusions you reach if you read between the lines of a recent ASIC review into the mortgage broking industry.
ASIC, the financial services regulator, followed more than 300 consumers in the process of taking out a home loan and surveyed another 2,000. The research found that:
● Consumers find home loans very confusing
● They often explore multiple options and take several false steps before ultimately deciding on their broker or lender
● They are heavily influenced by advice from family and friends
● They value the expertise and convenience offered by brokers
● Consumers become less concerned about interest rate the longer the process takes
Client satisfaction should be our number one goal
The ASIC review reinforced what my 35-plus years of industry experience have shown time and time again.
If we make the home loan process as easy as possible for borrowers, if we help them find the best loan for their situation and if we deliver outstanding service, they’ll not only provide us with repeat business, they’ll also refer us to their friends and family.
In other words, if we take care of our customers, they’ll take care of us.
Clients deserve the best loan, not the cheapest loan
With that in mind, it’s worth repeating the ASIC finding that borrowers become less concerned about interest rate the longer the mortgage process takes.
We do our clients a disservice if all we care about is getting them the home loan with the lowest rate. What we need to do is find them the loan that’s most suitable for their situation. If the best loan happens to have the lowest rate – fantastic. But a more suitable loan with a higher rate is better than a less suitable loan with a lower rate.
Again, to repeat another of ASIC’s findings, borrowers find home loans very confusing. It’s often hard for them to work out what the best loan is for their situation and hard for them to get the loan approved. That’s the problem they want us to solve. The more effectively we solve that problem, they happier we’ll make our clients.