For those of you who didn’t read the article in Canadian Mortgage Trends yesterday, I really think it’s worth taking a peek. In looking at the recent Manulife survey with 1000 clients the findings were quite interesting. This is the time of year in which you’re doing 2012 planning and I think the points here should really be taken in to account. Here are a couple highlights:
• 20% stayed with their current lender after maturity and did not negotiate
• 45% stayed with their current lender and tried to negotiate a good deal, but did not shop around
• 35% compared mortgages from several lenders and choose the best overall lender and product.
What does that mean for your business? If only 35% of your clients are looking at other lenders at maturity (and we know this also from the yearly CAAMP and CMHC survey’s) are you placing your clients with a lender who will pay you for as long as your client is with us? How much money are you leaving on the table?
As an example, if you were a 20M a year producer, and you put 35% of your business with Merix, that would be 7M. if you put that 7M with Merix every year for 5 years, did you know you can earn over $750k in trailer fees? And that is only assuming 85% of your clients stay with Merix! (quite a conservative number when looking at the Manulife survey) Please see the calculator attached. Also see attached a copy of our mortgage statements. Did you know we co brand all our documents that go to your client with YOUR name on it?
Here is a link to the Canadian Mortgage Trends article.
Choosing a Mortgage That is Right for You When you buy a home, you may only be able to pay for part of the purchase price. The amount you pay is a down payment. To cover the remaining costs of the home purchase, you may need help from a lender. The loan you get from a...