Top 4 Tips for Mortgage Brokers to Effectively Package Deals

November 29, 2020

You create solutions for your clients by addressing their unique circumstances. The process of packaging the deal is ultimately communicating your client’s story and the proposed solution to the lender.

By remembering these four tips, you will be able to package deals effectively:

Tip #1: Understand your client to provide strong lender notes.  

  • Hear their story: ask open-ended questions and probe for explanations
  • Identify the challenges of their situation
  • Document the complete picture, providing strong lender notes

 

Tip #2: Know your lenders and the niches in which they operate.

  • Know your lenders’ niches, lending areas, and special programs
  • Match your client’s profile/circumstances with the right lender
  • Be up front about what the client’s challenges are and what documents you can or cannot provide
  • Contact your BDM to discuss the detail

 

Tip #3: Be clear on how the solution will help your client.

  • Know the benefits of the deal and how they meet your borrower’s goals
  • Focus on what’s important to the borrower e.g. payment over rate
  • Communicate with the underwriter for any questions regarding the commitment
  • Let your underwriter and BDM know if there are objections you can’t overcome in the event adjustments can be made

 

Tip #4: Formulate and communicate your exit strategy.

  • Explain to the borrower why they didn’t qualify with an A lender and why you selected the chosen lender
  • Plan for the end of the term
  • Suggest actions the borrower can take to help themselves in the future
  • Be specific and measurable in your action plan for the borrower: “You need to pay $X on your credit card and $X on your loan each month.  That will bring your balances to $X in 12 months and improve your credit score by the end of the term.”

 

With strong communication and planning, you can implement solutions that create better tomorrows for your clients.

 

Register for Magenta’s back-end portal to access useful tools and forms today!

About Magenta Capital Corporation
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a long track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.
For more information, please visit Magentacapital.ca.