Most borrowers find mortgages too stressful, especially when it comes to second mortgage or home equity loans for debt consolidation. Many more brokers and lenders need to focus on their service aspect if they want to retain clients – after all only 7% of borrowers across Canada think of their mortgages as “easy” or “stress free”. But what are the most stress parts of the mortgage process? Where can lenders work more on their services and helping people through the process better?
Negotiation is Hard
Over half of all Canadian borrowers have reported that negotiation is hard; they’re not about to get the leverage that they need to negotiate without the help of their broker or financial advisor. Borrowers need to be better informed of what role their credit history, their income and their employment status plays when it comes to refinancing their mortgages or taking out another mortgage on their home. You’re a service provider, a mortgage broker, you need to be able to help them figure out how they can save and do more with less.
Finding the Right Terms and Payment Schedule
Most borrowers (over half) have reported that they’re not able to figure out what the right repayment terms, mortgage rules and even payment schedule is right for them; they’re not able to get help from their brokers or advisors and they’re left in the dark trying to figure out what’s right for them. If you can be there for them during this time they’ll recommend you to their friends and family. There just shouldn’t be this much frustration in the mortgage process.
Payment schedules are particularly important; many will choose the wrong time of month or won’t even try and negotiate for a lower monthly payment in lieu of upfront point payments because they don’t know that that’s an option for them.
Customer Service is Key
Most buyers are looking for service. Almost three quarters (73%) of borrowers today say they can’t get their lender or their broker on the phone for customer service. Hiring a person to man the phones instead of outsourcing customer service lines will do amazing things for your business.
90% of Canadian borrowers surveyed claimed that they were willing to pay 50% more for reliable customer service. Many say that despite wanting to find a good deal, they’d rather have someone they can see in person or talk to on the phone when they have a question. If you can do this you’ll be able to increase your fees and your customer base, all with a simple solution.
Buyers today want to work with lenders that will work with them. People can deal hunt for themselves on the internet, they’re hiring realtors, mortgage brokers, even home inspectors for knowledge, experience and their services. If you’re not providing people with a great level of service you’re not going to be able to retain the numbers you need to be successful.
Contact us today and see what we can do for you.