Planning for 2012

Dec 26, 2011

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.

Related Posts
Choosing a Mortgage That is Right for You

Choosing a Mortgage That is Right for You

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...

Breaking Your Mortgage in 2022   

Breaking Your Mortgage in 2022  

Breaking Your Mortgage in 2022   In our previous blog from 2020 on Breaking Your Mortgage, Vancouver's Top Mortgage Broker talked about how 6 out of 10 consumers will break their mortgage within the first 3 years of a 5-year term. That means that 60% of borrowers will...

Federal Budget Updates 2022

Federal Budget Updates 2022

Federal Budget Updates 2022   This bright industry is constantly evolving and growing at a rapid pace. In our previous Federal Budget Updates blog from 2019, we had discussed updates that were made to the CMHC First Time Home Buyer’s Incentive Plan and Home...