It's amazing that mortgage consumers will do seemingly anything to chase down the best rate for their first mortgage, and then completely lose that cost-cutting drive when it comes time to renew. We all know this happens, but the numbers, which were released by CMHC earlier this week, are truly shocking. Almost 90% of mortgage renewers and 70% of refinancers decided to stick with their lender.
Now, we know these mortgage consumers have the desire to save money in them after all, weren't they the same people calling our offices for the best rates just five years ago? So why are they willing to pay significantly more by renewing with their banks sometimes as much as almost 0.5%?
Maybe they're unaware of the fact that just because a bank offered the best rate five years ago, doesn't necessarily mean they're offering the best one today. Maybe their renewal date crept up on them, and they didn't have the time to devote as much time to rate shopping as they did before. Or maybe just maybe they've merely become complacent. Now that they're onto their second term, the thrill of the chase isn't nearly as strong.
Regardless of the reason, they likely still have that cost-saving desire in them, especially if it's presented to them in the right way. Sometimes, 0.5% doesn't look like that much until you compare the difference in monthly payments. This is why it's so important to have a timely and effective process for following up.
Axiom offers a foolproof and effective Smart Touch program, which, in addition to following up with clients on a regular basis, also sends a client renewal notice four months in advance, as well as an agent reminder. If you opt to take matters into your own hands and follow up yourself, make sure you clearly present the arguments for looking around elsewhere and the benefits of using your services to do so.
For more information, contact Nelson Sousa at 877-817-9984.