Zero Profit Mortgage

Mortgage Renewal best strategy - Zero Profit Mortgage

Transcript

1. ZERO PROFIT MORTGAGE Your Mortgage Renewal Strategy MortgagesLab Financial Inc.
2. John and Mary have been at the same bank for 10 years, 2 kids, they have their mortgage and they always pay it on time. They have other accounts and they are loyal to the bank. They even know Kathy by name (the teller) when they go to the branch. Why this presentation?
3. John and Mary have been at the same bank for 10 years, 2 kids, they have their mortgage and they always pay it on time. They have other accounts and they are loyal to the bank. They even know Kathy by name (the teller) when they go to the branch. Why this presentation? They both work and weekends are always busy running between grocery shopping, kids activities and birthdays. They are hardworking nice people and trust their bank.
4. They receive about 25-30 mailers and bills every week and just got the renewal letter from the bank… wow 5 years go very fast… they look at the options, with vacations coming up and the busy work, they pick another 5 year term and send back the renewal letter to the bank. Why this presentation?
5. They receive about 25-30 mailers and bills every week and just got the renewal letter from the bank… wow 5 years go very fast… they look at the options with vacations coming up and the busy work they pick another 5 year term and send back the renewal letter to the bank. Why this presentation? John and Mary are the best customer profile for any bank. What the bank has offered them is about 0.5% more what they would offer to a new customer. Why?
6. Banks know you are busy. Their #1 Priority is profitability and customer retention. With 0.5% more interest rate, the branch has earned $5,000 from John and Mary and the branch has achieved his revenue targets for the month. They know 85% of renewals stay, families are loyal to banks. Why this presentation?
7. Banks know you are busy. Their #1 Priority is profitability and customer retention. With 0.5% more interest rate, the branch has earned $5,000 from John and Mary and the branch has achieved his revenue targets for the month. They know 85% of renewals stay, families are loyal to banks. Why this presentation? We do not believe in profits only, we do not believe families have to pay for targets of the branch, we do not believe banks only Contacting customers at renewal…
8. Our Values – What we believe in: -  Clarity: Ask your bank about Mortgage Penalties and how they calculate it… Why this presentation?
9. Our Values – What we believe in: -  Clarity: Ask your bank about Mortgage Penalties and how they calculate it… -  Integrity: Is your bank trying to sell you another account or insurance again? Why this presentation?
10. Our Values – What we believe in: -  Clarity: Ask your bank about Mortgage Penalties and how they calculate it… -  Integrity: Is your bank trying to sell you another account or insurance again? -  Trust: Would they tell you, there is a better mortgage option at another bank? Why this presentation?
11. We want to earn your TRUST, bring CLARITY to you with options (from different lenders) and have INTEGRITY providing a strategy that works for you and PROTECTS your family. Why this presentation?
12. We want to earn your TRUST, bring CLARITY to you with options (from different lenders) and have INTEGRITY providing a strategy that works for you and PROTECTS your family. Why this presentation? This short presentation will open your eyes and show you how you can have a Renewal Strategy at zero cost to feel great about your next Mortgage Renewal.
13. Your Mortgage …………..………………….…… 1 Your Bank Strategy …………….………………. 2 MortgagesLab Strategy for you ……...….... 3 Next Step …………………………………….….... 4 TABLE OF CONTENTS:
14. •  Usually a family would have a 25 year mortgage divided in 5 terms of 5 years. So you may be in your 1st, 2nd or 3rd term as an example. You can also have other terms, Example 3 year term or 10 year term.           You are free to choose your next lender. CHAPTER 1: Your Mortgage
15. •  So to be clear. Your TERM is for 5 years (example) and the total number of years to pay your mortgage in full is called AMORTIZATION.           You are free to choose your next lender. CHAPTER 1: Your Mortgage
16. •  IDEA! When your TERM is up, you can switch, transfer or renew your mortgage at another bank or lender WITHOUT any cost (just paperwork). In this example a 25 year mortgage had 5 terms, each with a different bank.           You are free to choose your next lender. CHAPTER 1: Your Mortgage
17. •  So choose wisely the lender for every term depending on your strategy, circumstances and options available to you.           You are free to choose your next lender. CHAPTER 1: Your Mortgage
18. •  Banks have 2 strategies to increase their profits and retain you as a customer: •  EARLY RENEWAL strategy •  LAST MINUTE strategy CHAPTER 2: Your bank’s strategy (Part I)               Early Renewal Helps the bank avoid competition Renewal   Date  
19. •  EARLY RENEWAL is when banks call you 6 months before your renewal to lock you in for another 5 years based on the FEAR that rates will go up… CHAPTER 2: Your bank’s strategy (Part I)               Early Renewal Helps banks 
 avoid competition Renewal   Date  
20. •  Their intent is to avoid any competition from other lenders. Ask them if rates go lower before your renewal if they would lower the rate for your next term…. OF COURSE NOT! •  You are risking being able to get a better option with other banks for 6 months! CHAPTER 2: Your bank’s strategy (Part I)               Early Renewal Helps banks 
 avoid competition Renewal   Date  
21. •  LAST MINUTE STRATEGY is when banks contact you just a few days or weeks before your renewal date. •  Their strategy is not to give you their best deal, only if you shop around, they will match a competitor offer. CHAPTER 2: Your bank’s strategy (Part I)               Last Minute
 Strategy Renewal   Date  
22. •  Their intent is only retention as a customer. They do not offer any benefit or value to you, just they match other banks offers if necessary and ask you for a fast “Sign Here” CHAPTER 2: Your bank’s strategy (Part I)               Last Minute
 Strategy Renewal   Date  
23. •  KEY POINTS TO REMEMBER: •  Banks inflate interest rates to be able to give you a discount •  They may match a rate but have a penalty calculation double of other lenders •  They will not give you options from other banks CHAPTER 2: Your bank’s strategy (Part II)               Banks #1 Rule
 PROFITS Renewal   Date   More  %  
24. BANKS Revenue Model: •  Profit driven by their shareholders & branch profit targets Zero Profit Mortgage Banks and Mortgage Brokers have different revenue models…           Align yourself with someone that has your best interests in mind
25. MORTGAGE BROKERS Revenue Model •  Options from different banks and lenders, value by understanding customers objectives, clarity & trust leads to Referrals. The better job, the more referrals, the better the broker does.. Zero Profit Mortgage Banks and Mortgage Brokers have different revenue models…           Align yourself with someone that has your best interests in mind
26. ZERO PROFIT MORTGAGE is a strategy designed to give you all the value that banks are not willing or are unable to provide. It works as follows: CHAPTER 3: Zero Profit Mortgage               Zero Profit Mortgage is your own strategy! Ratehold  #1   Ratehold  #2   Bank  Offer   #1   Renewal  Date   Your  next  renewal   Start  4-­‐6  months  
27. 4 - 6 months before your Renewal Date we secure a rate hold. This means if rates go up you are protected. If rates go down after & anytime during the months before your renewal, we can lower your rate. Objective: Protection and Seek best option CHAPTER 3: Zero Profit Mortgage               Zero Profit Mortgage is your own strategy! Ratehold  #1   Ratehold  #2   Bank  Offer   #1   Renewal  Date   Your  next  renewal   Start  4-­‐6  months  
28. During 4 – 6 months before your renewal we will have different lenders best options and promotional rates for you to choose. Once we identify the best lender for you, we do the transfer and you continue to your next term. No cost involved. Objective: Strategy and Value CHAPTER 3: Zero Profit Mortgage               Zero Profit Mortgage is your own strategy! Ratehold  #1   Ratehold  #2   Bank  Offer   #1   Renewal  Date   Your  next  renewal   Start  4-­‐6  months  
29.           Feel free to call me anytime with questions! 1)  Questions? 2)  Business Card 3)  Write in the back your Renewal Date and home phone number 4)  Alternatively please email me name, contact details and renewal date Next Step… MortgagesLab Financial Inc.