One of the top ways to provide the best service possible is to have an organized system for regular communication with your client base.
This is especially important when it comes to keeping track of the mortgage maturity dates for your existing clients. It’s best to get in touch with clients before they receive a renewal package from their lender, so that you can discuss their mortgage and financial needs well in advance and avoid a last-minute scramble.
Setting up a system to deal with this can be the easiest way to make sure you have plenty of time to carefully package a new deal for your returning clients, or to walk them through their renewal options with their current lender.
Having a calendar to schedule daily appointments is common practice, but having a calendar to remind you when mortgages for your existing clients will be maturing is a good idea too! There are plenty of free online calendars (most email platforms have calendars too), that can be used to set up an electronic reminder for maturity dates. Ideally, the reminder should be set 3-6 months in advance, so that you can refresh your memory on the file, and make the time to go over your borrower’s changing needs before their mortgage matures.
The next steps will depend on whether your clients would like to renew with their existing lender, or whether the file needs to be re-packaged and sent to a new lender for consideration.
A lot can happen in a short amount of time. This is particularly true for mortgage rates over the term of a mortgage. Whether your clients signed on for a one-year term, a five-year term, or anything in between, it’s likely that the renewal rate they’re being offered is different to the one on their original commitment.
Since the interest rate on a mortgage can be the deciding factor for many borrowers, it’s important to go over the different rates offered by various lenders (including the existing lender) and to understand what those rates mean.
While clients may not know much about rates on offer, brokers will have an excellent grasp of the different mortgage products and rates currently available. Discussing their existing mortgage, as well as their renewal package, and any changing needs will make the process smoother once it comes time to get a lender involved.
Whether it’s best for your clients to renew with their existing lender, or move to another lender – no matter what the reason – encouraging your clients to discuss their renewals package well ahead of the maturity date can be beneficial for all. This helps you place them with the lender offering them a rate and term that best fits their needs.
Whatever their needs or preferences, going over renewal paperwork with your existing clients, or letting them know they should expect a renewals package soon will mean that clients know that they have access to your knowledge and advice.
Industry Top Tip: Keep an eye on the news. Rate are rarely hiked without notice. If you have clients whose mortgage are maturing around the time of a predicted rate hike, it might be time to search your renewals calendar and invite them to make an early appointment.
About Magenta Capital Corporation
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers. MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a 24-year track record of generating superior returns for the shareholders of Magenta Group MICs. MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.
For more information, call us at 888-267-1744 or visit Magentainvestment.ca.