The Various Roles of Mortgage Brokers in New Zealand
The casual observer may believe that one mortgage broker performs the same role as another in the New Zealand context, but this is not so. Mortgage brokers in Hawke’s Bay have divided themselves into different categories, and they serve different markets and they most certainly carry out their service in different ways.
This article looks at the residential market and the different treatment that is given by different categories of mortgage brokers.
In many respects there are basically two groups of mortgage brokers Bay of Plenty. One group comprising a small number of very large mortgage broking companies that are processing a large number of mortgages and are getting most of their leads from the Internet. This group has invested a very significant sum of money in their digital marketing capability, fundamentally to make certain that they are ranking very highly for common Google search terms relating to mortgage brokers. They have also invested heavily in their website to make certain that there is a high rate of conversion, meaning a high percentage of visitors to their website and up by contacting them..
While this initial upfront investment can be very substantial indeed, the Executives making the decision for this investment are obviously very well aware of the almost unbelievable business case. The truth is that Internet search is growing almost exponentially across all markets for all products, and the customers doing the same thing almost always choose those websites that rank in the first two or three on page one. What this means in effect is that a company who has their website ranking number one will be attracting at least 100x more Internet based business then companies that are stranded on page 2 or beyond. While the investment required in SEO can be massive, the financial Rewards can be almost unbelievable if the company gets ranked #1 or #2.
Typically these large companies get so much incoming business that they use low level admin staff to screen the callers, so that only the customer’s absolutely certain to get a mortgage are passed through to a broker for service.
The second group of brokers or everyone else who was not on page 1, and these will generally be small brokerages or individuals operating independently. The main financial benefit for these brokers is that they do not have to pay any franchise fees or commissions, but the disadvantages that they will have to work very hard for new business in most cases. There are a lot of successful brokers out there who have built up a very good network of real estate agents and property developers etc, and they should be getting a lot of referral business and repeat business. In fact referrals and repeat business is generally the main way that all the second group of brokers find their new business.