A PROFESSIONAL COPYWRITER WHO KNOWS HOW TO WRITE MARKETING COPY FOR MORTGAGE BROKERS IS AN AFFORDABLE AND PRACTICAL WAY TO GROW THE MORTGAGE BROKER’S BUSINESS.
Today’s mortgage brokers face unprecedented competition.
They not only have to compete with other mortgage brokers – they also have to compete with new technologies. Aggregator websites allow consumers to compare different loans against each other.
The key for me as a copywriter is to manage the transparency of the communication between the mortgage broker and the client.
The mortgage broker will send lenders their clients’ information pack filled with details about their financials, their deposit, the evidence of savings, details of financial commitments, and property details including the price for the building. The information pack will also include details about the client’s recent PAYG summary, a notice of assessment from the Australian Taxation Office, tax return, proof of their contribution toward the transaction, such as savings or deposit statements and the purchase contracts for the home loan, including building contracts, or plans of the building. What is the value of the asset they are buying? What is the size of the deposit? And their living expenses?
Now the issue is that home loan rejection rate is up 32 percentage points year-on-year in an environment of tightened lending standards, slowing credit growth, according to research from Digital Finance Analytics. And about 50% of new residential mortgage applications are being rejected by cautious lenders fearful of borrowers’ inability to satisfy tough new terms.
The reality is that the lender more often than not will come back to the mortgage broker seeking answers to more detailed questions about the applicant.
This is where I help the mortgage broker handle the communication with the client which is done usually by email or over the phone.
We don’t tell them the bank has rejected the application. We tell them that the bank just wants more information. I make sure that the mortgage brokers explain to the clients that this is just standard for the banks which are in the business of being cautious with loans.
There might be a number of red flags for the bank, Like for example, the client using AfterPay. Or if they’re a tradie working overtime. Is that ongoing? What are the prior year’s tax returns. The bank, the mortgage broker explains, just needs the extra information for the loan to go through. Which will allow us to submit more documentation. I make sure the mortgage broker informs the clients are only giving as much information as the bank needs.
According to the rules of ASIC, the broker needs to be mindful of the individual circumstances of the consumer, their needs, goals and financial situation and need to exercise their judgment when determining what is in the consumer’s best interests.
To reassure the client, we tell them that we will only be providing the lender with as much information as they need. No more than that. It ensures transparency and maintains clients’ confidence.
I want to hear from any mortgage broker needing help with their communications. Contact me at [email protected] or on 0411 745193.