Stay One Step Ahead: Overlooked Tips Brokers Can Share with Borrowers
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July 12, 2023 |
Stay One Step Ahead: Overlooked Tips Brokers Can Share with Borrowers
Access valuable resources and email templates to effectively communicate and guide borrowers toward mitigating climate risks and protecting their properties.
As a mortgage broker, you play an instrumental role in guiding borrowers toward the right mortgage solution. Through the process of arranging your clients' mortgage, you learn a lot about the property they want to buy or the one they currently own. This gives you the unique opportunity to add additional value by providing your clients with often-overlooked tips on protecting their real estate assets.
In this blog post, we will share insights with brokers on how they can provide their clients with information on how to mitigate some risks associated with flooding, fire, heatwaves, and other climate-related issues.
Know the Risks: Educating Borrowers on the Impact
(Credit: Intact Centre on Climate Adaptation)Here are some key points you may educate your clients about:
1. Property Value Considerations:
Emphasize the impact of climate-related risks on property values. Discuss how taking proactive measures to protect their homes (see examples) and how doing so can help maintain or even increase the value of their homes over time. Provide examples of how properties with resilient features may attract higher demand from buyers or have better insurance coverage options.
According to Intact Centre's research, flooding greatly lowers home prices in flood-prone areas, with an average decrease of 8.2%. It also causes a significant 44.3% drop in listings. Homes in flood-prone areas stay on the market for 19.8% longer, creating challenges for sellers with higher costs and uncertainty.
2. Insurance Awareness:
Direct borrowers to reliable sources, such as the Government of Canada's official Home Insurance page, and the Insurance Institute’s report page, where they can find information on the importance of insurance coverage for climate-related risks.
Give them a list of questions they should be asking their insurer, such as:
“Does my current insurance policy provide coverage for climate-related risks such as floods, wildfires, or extreme weather events?”
“Are there any exclusions or limitations in my policy regarding climate-related risks? If so, what are they?”
3. Sourcing information:
Direct borrowers to local resources and organizations that provide information and assistance on climate resilience. This can include government agencies, nonprofit organizations, or community initiatives.
In this blog post, we also provide downloadable resources shared by Intact Centre to assist your clients in navigating climate-related risks effectively. For more climate datasets, tools, guidance and related resources, you can visit the Library of Climate Resources collected by the Government of Canada.
Guiding Borrowers Towards Resilience: Practical Steps to Mitigate Climate Risks
(Credit: Intact Centre on Climate Adaptation)As a broker, you’re not expected to be a climate expert, but pointing your clients to resources that can help them protect their assets will go a long way in building trust and loyalty because it shows you are looking out for them.
We’ve curated a list of resources you can share with your clients:
Three Steps to a Cost-Effective:
For example:
Remove needles, leaves and other debris from gutters, roof surfaces, decks and balconies. Regularly clean vents.
Replace worn or missing weather stripping on all doors including garage doors.
2. Apartment and Condo Heat Protection
For example:
Sign up for heat alerts on your phone (e.g., WeatherCan).
Green your balcony or deck with potted, hanging and climbing plants.
Install temperature and humidity monitors or controls.
For example:
Remove debris from the nearest storm drain or ditch and culvert.
Store valuables in watertight containers.
Effective Communication: Email Templates for Sharing Resources with Clients
To help you in sharing valuable resources, we have prepared email templates that you can use to communicate with your clients. These templates will help you guide your clients toward practical steps for resilience and provide them with the necessary information to protect their homes. Feel free to customize and use these templates to effectively communicate the resources mentioned above:
Hi [Client’s Name],
I hope this email finds you well.
I’m reaching out to bring to your attention an important aspect related to your mortgage and homeownership. As your mortgage broker, I want to ensure that you are well-informed and prepared for potential issues that might impact your home and mortgage down the line.
You may have noticed that we're seeing more instances of extreme weather lately - things like floods, wildfires, and heatwaves. Now, why these weather patterns are shifting—whether due to climate change, natural cycles, or other factors—is a topic of ongoing debate among experts. As your mortgage broker, my focus isn't on pinpointing the cause of these changes, but rather on how we can manage their potential effects on your property.
So, what's the plan? Well, the good news is there are proactive steps we can take to protect your property and maintain its value over time. I've pulled together some top-notch resources for you. These aren't just generic guides - I've picked out information that I think will be really relevant and helpful for your particular situation. [Include a brief summary of the resources and practical steps mentioned above that’s relevant to your clients’ situations]
You'll find all this info in the attached documents. When you have a moment, give them a look-see. And remember, I'm here to help. If you have any questions, or just want to chat about it all, just give me a shout.
Warm regards,
[Your Name]
[Your Contact Information]
In summary, your role as a mortgage broker extends beyond securing the right mortgage solution; it encompasses guiding borrowers toward resilience and empowering them to protect what matters most. You hold the power to shape the mindset of your clients and equip them with the knowledge and tools to navigate the challenges posed by climate change. By implementing the guidance and tips provided above, you can guide your clients to mitigate the risks associated with climate change, maintain the value of their properties, and protect their investments.
Author Profile
Jessica Yang is the Marketing Coordinator at Neighbourhood Holdings. She is a graduate of UBC’s BMS program. She has a passion for digital design and creative writing. She enjoys travelling and vlogging.