In October last year, Your Client Matters ran a series of webinars about weathering the perfect storm.

We predicted the scenario that is currently playing out for mortgage brokers.

As you were all very busily locking your clients into low fixed interest rates, we warned you to plan forward to the future (NOW) as the time would come when your golden days would be over.

With more than 50% of mortgage holders now in fixed interest rates for at least another 12-18 months, mortgage brokers are struggling to capture a new market share.

And this market share is NOW significantly less than our traditional lending environment.

While a traditional market has only ever had about 15% of consumers in fixed loans, the ultra low fixed rate environment of last year now brings challenges for brokers looking for new business today.

With the current market having more than 50% of mortgage holders in fixed loans the market share available to mortgage brokers is now 27% as opposed to 51% in a normal environment.

 


 

Having been in this industry for nearly 2 decades, I have seen it all when it comes to broker success and failure.

A typical response from brokers when times are tough is to blame their marketing company. They did not realise that while the sun was shining, their attention to growing their database waned. Now, when they need 3 times the number of clients sitting in their database, they look back and wonder how on earth did they not see this coming?

You need marketing support NOW more than ever to survive the next 2 years.

And just sending emails to existing clients with fixed loans will not be the solution.

So HOW DO YOU generate NEW business in a saturated fixed interest environment?

You need to do something different.
You need to find new sources of leads for those who have not yet purchased or fixed their mortgage.
You need to build stronger and better referral relationships.

And you need to constantly stay in touch with your existing client base – because if you don’t, they will be screaming for help when their fixed rate ends and can’t afford what will be a variable interest rate of probably double to what they currently pay.

So where is the new business to be found?

  • New homeowners
  • Upsizers and downsizers – if they can move
  • Expats returning and immigrants coming to Australia to live and work
  • Investors taking the opportunity of using their increased equity and high rental returns
  • Landlords who have not refinanced

An email strategy alone will not help you find and qualify these new mortgage holders.

But what if you had a team of people who can help you:

  1. identify where your next lead is going to come from?
  2. implement systems and strategies to attract these potential new clients?
  3. create strategic partnerships in the target areas you need to be working in?
  4. qualify new business for today?
  5. confirm new business for tomorrow?

Well that’s what Your Client Matters has been helping brokers do for over 18 years now − through the GFC, the property market highs and lows, interest rate highs and lows, COVID and now the highest fixed interest rates we have ever seen.

We are not pretending it will be easy. But we have long term systems and strategies that continue to work, year in and year out, regardless of the market.

Why not have an introduction or a refresher on why Your Client Matters is still the longest and strongest marketing partner in the finance industry and why our partners of 18 years are still with us?

Reach out to Your YCM Marketing Team