They say managing client expectations from the outset has become vital
With the last year having brought uncertainty, lockdowns and a booming housing market to New Zealand, mortgage brokers are discussing the ways in which client expectations have changed - and for many, turnaround time has become more important than ever.
Speaking at NZ Adviser’s live webinar, Roost CEO Mark Pullar said the changes he’s witnessed have been mostly around the lending environment, and that has meant a need to set realistic expectations very early on with a client.
He said lenders now require much more information for simpler transactions, and turnaround times have increased, meaning clients often can’t access the same level of service they might have been used to over the last three-five years.
Read more: Banks “too pessimistic” after COVID-19 and April lockdown
“The reality of what clients can expect from the banks has really changed, whether that’s turnaround time, what they can service on their income, or how easy it is to get an interest-only extension,” Pullar commented.
“For example, we’re having to tell clients that we need to do a full loan application to have their interest-only period extended. So, for us, expectation management is massive, and if we don’t do that properly, the client’s experience won’t be what they were used to in the past.”
“We have to be really upfront that the lending world is quite different now to what it was when they first engaged with us several years ago, and this is the reality of what they now need to expect,” he said.
“Fifteen (15) working days is the new 10 working days, and it’s not just about educating our clients - it’s also about educating our real estate agents to help them understand the realities of how long things might take, and how long it might be compared to their previous experience.”
iConsult founder Satyan Mehra said he’s definitely seen an increase in urgency from clients over the past year, particularly as the housing market has boomed and rates have dropped. He said that a fear of missing out is often fuelling demand for things to be done instantly - something which is becoming increasingly difficult as banks slow their pace.
Read more: Advisers share which banks have been supportive through the COVID-19 pandemic
“I’ve noticed that with the market booming over the last few months, there’s a sense of urgency for clients for everything to be done faster,” Mehra said.
“They have a feeling that they might miss the ball, but, at the same time, banking has become slower - as Mark said, the turnaround time is now 15 working days.”
“But clients are wanting things done fast, they want to make a call and get an appointment straight away, so managing that has sometimes been quite challenging,” he explained.
“And we understand the bank and lender side, but bridging that gap between the client and lender can be difficult, so some conditioning and setting of expectations is required right from the start.”
