The Mortgage Renewal Gold Rush: A Mirage
For the past 18 months, brokers have been told that a massive renewal wave is coming, and it's their big chance to cash in. However, the truth is that this wave is a mirage.
Waiting for renewals to drive business is a losing bet. By the time a client's mortgage is almost up, the banks already have them locked in. The incumbent lender holds an unfair advantage.
Renewing is the path of least resistance for clients, and lenders' deep pockets let them go on the offensive.
They'll outspend brokers on marketing, and undercut the rate spent hours negotiating. By the time renewal rolls around, the deal is often already gone.
The Real Opportunity
The real opportunity is mid-cycle, long before renewal. This is where brokers can focus their efforts to drive business.
Author's summary: Brokers should focus on mid-cycle opportunities, not wait for renewals.