As all good brokers know, the majority of your customers aren't coming to you just for a mortgage. The reality is, they've got bigger dreams and aspirations they want to achieve; be it the great Australian dream, creating a safe and secure home for their family, or looking for financial prosperity – and your role is to go above and beyond to help them achieve this.
But with frequent talk of financial doom and gloom in the mainstream media these days, some of your customers may get caught up in the hype and begin to believe that their chance of achieving their dreams is slipping away.
Good brokers can help increasingly worried customers stay on track to achieving their dreams and help manage the anxieties that often come with a mortgage.
Tommy Lim, of SF Capital and member of the MFAA's Young Professionals Panel, recommends the use of a range of education and communication techniques to help clients maintain their focus on achieving their dreams.
Education, Education, Education: Teach clients the fundamentals of borrowing so they know how the numbers are derived. This allows clients to feel more in control and allows them to better participate in the decision-making process.
Understanding the range of solutions: If they cannot achieve their intended goal immediately, give your clients the full range of options available to them that will allow them to get there. This helps the client 'buy in' and builds their confidence.
Decisions based on data: Use the numbers to guide you and be very detailed in your analysis so that you know the range of possible servicing outcomes – allowing you to have open, honest and informative discussions with your clients. Your preparation, assurance and conviction will give them confidence.
Proactive communication: Keep the client up-to-date throughout the whole process so that they are not chasing you up. This goes for good news and bad and reduces the fear of the unknown.
Draw on case studies: Draw on your past experiences with other clients in similar situations and markets to instil confidence. Share your success stories as well as difficult case studies to showcase your ability to resolve unexpected scenarios or situations.
Mortgage brokers can also use a product strategy to help their customers, for example, making them aware of products like mortgage and loan protection insurance. Mortgage and loan protection insurance* covers the customer from unexpected life events that may impact their ability to make their loan repayments. It often includes cover for events such as involuntary loss of job, accidental injury, serious illness, and death.
In cases like Joel and Anna's, where 24 year-old Joel was diagnosed with cancer and Anna was 15 weeks pregnant, mortgage and loan protection insurance provided them with the financial support they needed to keep their family home, raise their young daughter and allow Joel to seek the medical treatment he needed. Watch their story here.
Mortgage and loan protection is an additional service, brokers can offer to help customers feel more secure during the home loan application process and beyond, providing peace of mind should the unexpected happen.
Huy Truong, CEO of ALI Group, a leading provider of mortgage and loan protection insurance, said "As we can see from market share, more and more Australians are looking to their brokers as the pathway to obtaining advice on mortgage finance. Loan and mortgage protection insurance that protects the borrower will increasingly be a natural part of that discussion.
“Together we (ALI) have provided financial protection for almost 200,000 customers with almost $100m paid in claims. For those policy holders, the mortgage broker who arranged their protection through ALI has changed their lives.”
For more information on mortgage and loan protection insurance, visit ALI Group’s website here.
*Ensure that you are authorised to offer financial services products or advice.