Mortgage Broker = Trusted Advisor – Are We There Yet?

We all know that the mortgage industry is extremely competitive. Banks have deep pockets and are constantly blasting out discounted mortgage rates which has created the perception with consumers that rates are what matter and that mortgage brokers are their rate shoppers when really a broker should be perceived as a trusted advisor.

So how does one change this perception in the marketplace? This is much easier said than done and requires alignment in messaging. Focusing on rate simply lumps agents and brokers into the same basket as the banks when there is so much more to consider in a mortgage than just rate. What can a mortgage professional do to establish that they are more than just a rate shopper? Educate, educate, educate!

Mortgage terms such as term, amortization, penalties and privileges are all key and can make a considerable difference in terms of the bottom line that the customer will end up paying once their mortgage reaches fruition. Educating the public about the importance of negotiating excellent mortgage terms is one way that clients will come to understand that they need more than a rate shopper on their side – they need a negotiator.

Experience counts. This is fairly obvious to those who work in the mortgage industry but may not be so clear to the end consumer. The bank employee is educated about their employer’s products and services, but not necessarily to the industry in general and they will certainly not highlight existing weaknesses in their products. Education that relates to the level and diversity of experience that a broker brings to the table is vital so that consumers understand that they are receiving better representation by dealing with a broker than by going directly to a bank.

Who does the representative represent?  When a consumer goes directly to a bank, they are not the one who signs the bank employee’s cheque – they are however the one who signs yours. You disclose to your clients the commission that you will be paid by arranging their mortgage and so they are hiring you to get them the best mortgage available as it relates to their needs. Education in this regard is important because it is essential that you differentiate yourself from dealing with lenders directly.

Financial education. It is no secret that one’s credit score and income type play a huge role in the competitiveness of their mortgage rate. As a broker you have an in-depth knowledge in this regard and are in a position to counsel your client so that the mortgage rate and terms may be lower tomorrow compared to today, as a result of making small changes that improve their overall financial profile. Promote this fact – this sets you apart and makes you far more than simply a rate shopper.

Brokers and agents collectively represent thousands of financial professionals in the province of Ontario alone. Getting aligned and promoting all of the value of your services and not just to lowest rates is the fastest way to change this perception and establish a brand - a brand that says a mortgage agent or broker is a lifelong trusted financial advisor.

For more information about how you can help clients distinguish you from the bank and change the perception of mortgage brokers as strictly rate shoppers, please visit www.purview.ca/brokers or call 1-855-787-8439.