Navigating the mortgage process can be daunting, and mortgage brokers play a crucial role in making it easier for customers. Here’s how you can explain their benefits clearly, tackle common misconceptions, and build trust.
The Benefits of Using a Mortgage Broker
Mortgage brokers offer unique advantages that can be game-changers for customers:
- Access to More Lenders and Products: Brokers provide options from a range of lenders, including exclusive products that aren't directly accessible to the public. This competitive advantage could mean securing better terms or lower rates.
- Time and Stress Savings: Customers can save significant time as brokers handle everything, from paperwork to lender negotiations. For busy individuals, this service reduces stress and simplifies the home-buying process.
- Post-Settlement Support: Brokers don’t stop at settlement. They continue to support customers with future needs, such as refinancing or loan variations. This ongoing relationship adds long-term value.
Talking Point Example: “With access to a variety of lenders, I can help you find a loan that suits your needs. I’ll take care of the legwork, so you can focus on finding the right home.”
How Brokers Get Paid
It’s crucial to clarify how mortgage brokers earn:
- Commission-Based Income: Brokers are paid by lenders through upfront and trail commissions. These are similar across most lenders, which reduces potential bias in recommendations.
- Regulated Transparency: Australian regulations require brokers to disclose commission structures, ensuring customers understand how brokers are compensated. This transparency helps maintain trust.
Talking Point Example: “I get paid by the lender, but commissions are standardised across most options. This allows me to focus on finding the right loan for you, without it costing you more.”
Addressing Common Misconceptions
Many customers may have preconceived notions about using a broker. Here are ways to tackle them:
Misconception: Brokers are More Expensive Than Banks
Reality: Brokers don’t charge customers for standard loan services, as they’re paid by lenders. Moreover, brokers may help customers find lower-cost loan options.
Misconception: Brokers Only Recommend Certain Lenders to Earn More Commission
Reality: Brokers have a legal obligation to act in customers' best interests, ensuring recommendations are suitable for their circumstances.
Talking Point Example: “My job is to find the loan that aligns best with your situation, not the one that pays the highest commission. That’s why I assess various options based on your needs.”
When explaining the benefits to your customers, focus on how you simplify the process and act in their best interests. By addressing common misconceptions, offering clear explanations of commission structures, and sharing real-life examples, you can help your customers appreciate the value you bring.
For your customers who want to learn more you can send them to the MFAA website, which has additional resources explaining the benefit of brokers.
