The Mortgage Renewal Gold Rush is 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 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, and renewing is the path of least resistance for clients. Lenders’ deep pockets also let them outspend brokers on marketing and undercut the rate that was spent hours negotiating.
The real opportunity is mid-cycle, long before renewal.
By the time renewal rolls around, the deal is often already gone.
Author summary: Brokers should focus on mid-cycle opportunities.