I recently had a client who had been an RBC customer for over 40 years and has had a mortgage with them in one capacity or another for the last 30. He called me absolutely fuming, upset that he had discovered that his bank hadn’t offered him their best rate when his renewal came up. When he received his renewal notice, he figured he’d do a little comparative shopping and found similar mortgage products and rates with a few other lenders that were 50 basis points (0.50 percent) lower (he would have paid over $7,000 in interest over the next 5 years if he had signed on the dotted line without question!). Only after he called RBC to express his discontent with the situation did they offer him a lower rate (still wasn’t as good as the rate I was able to offer him for a similar product). He had felt taken advantage of and that his loyalty over the years had amounted to nothing.
This, sadly, isn’t an isolated case. If heard similar stories from several other clients and this is a problem that will continue to persist as long as the Canadian public remains uneducated about the tremendous advantages of using a mortgage broker when it comes to renewing their mortgage.
As discussed in my video, client referrals are key factors in a Calgary mortgage broker’s success. Whereas banks might depend more on their marketing to bring in and retain clients, individual mortgage brokers depend on maintaining client satisfaction. Our goal is to form long-term relationships so that our clients will continue to use us in the future and refer us to their family and friends. If we didn’t offer superior products and rates, we’d be shooting ourselves in the foot and wouldn’t last long in the industry.
This client could have saved a lot of time and money by contacting a reputable mortgage broker on the onset to discuss available mortgage products and rates rather than take on the responsibility themselves. But again, it comes down to education. Many people believe that mortgage brokers are for those with less than stellar credit, which couldn’t be farther from the truth. Based on my experience, it’s actually the most prevalent misconception in our industry. Most of our lenders only deal with ‘A’ clients. We do, however, have access to a handful of ‘B’ lenders with those who are currently rebuilding their credit or have other financial roadblocks preventing them accessing mortgage products through traditional means.
One of the great things about having a reputable Calgary mortgage broker is that they contact you a few months prior to your renewal date to go over mortgage options. They will indicate whether it’s best to stay with your current lender or to switch to another lender to take advantage of a better product/rate.
If you have any questions regarding renewals that weren’t covered above, I welcome the opportunity to discuss them with you. I can be reached at 403.389.4166.
