Chapter 1 - The Mortgage Process
excerpt
Chapter 1 of the Mortgage Lab Adviser Training: a comprehensive, plain-English guide to the end-to-end mortgage advice process. Learn how to handle client calls, structure meetings, Trail documentation, responsible lending duties, and post-settlement follow-ups.
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mortgage advice process, mortgage application NZ, Trail CRM training, client onboarding, refix process, first meeting mortgage, structure meeting tips
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Current Mortgage
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The Complete Mortgage Process for New Mortgage Advisers | Mortgage Lab
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Learn the full mortgage advice process from first client call to settlement, disclosure, and follow-up. An essential training resource for new Mortgage Lab advisers.
Chapter 1: The Mortgage Process
Helping Clients Navigate One of Life’s Biggest Decisions
01. Understanding the Mortgage Advice Process
The full mortgage process is outlined in the Mortgage Application V3.10.2021 PDF. Download and open this now—it's colour-coded and visually maps out every step in a typical application. Here’s a simplified overview in four key phases:
Pre-Application Stage
Approval Stage
Structure Stage
Post-Settlement Stage
The colour-coded flowchart breaks down like this:
Light Blue: Adviser actions
Dark Blue: Informational steps
Red: Auditable steps (critical for compliance checks)
Orange: Desired outcomes of each interaction
Green: Meeting goals and checkpoints
You’ll also see a “Pipeline” bar alongside the process which reflects the stage your client should be in within the Trail CRM. If you’re about to meet with a client, they should be tagged as “Fact Find” in Trail.
Take time to familiarise yourself with every step. Understanding the flow now will pay dividends as you begin working with clients.
02. Refixing a Client
The process of helping an existing client with a refix is outlined in Refix Opportunity V3.05.2021. Download this document and then read the article Creating a Mortgage Servicing Opportunity to see how to apply this process in Trail.
03. The First Phone Call
The initial phone call is one of the most important parts of the mortgage journey. Your goals are:
Introduce yourself professionally
Identify the client’s problem
Start building trust
Confirm Trail access
Book a first meeting
Introducing Yourself
State your name and that you’re a mortgage adviser with Mortgage Lab. Mention how you got their contact (“Joe asked me to call you”) and always ask, “Is now a good time to talk?” This makes the interaction feel respectful and non-intrusive.
Understanding the Client’s Situation
Ask questions that uncover the real story—what’s their deposit or equity position? Income? Are they recently self-employed or new to the area? Have they had any bank declines? These early red flags will help you frame your first meeting.
Build Trust Early
Acknowledge frustrations—mortgages are complex.
Listen attentively and don’t rush them.
Highlight any unique factors and hint at possible solutions. Don’t name banks yet.
Book the First Meeting
Always lock in the first meeting during the phone call. This creates a natural deadline for the client to complete their Trail fact find and keeps momentum up. Don’t wait for them to finish the form before you book—things will stall.
Top Tips for Better Calls
Smile as you speak—your tone improves naturally.
Walk around while talking to keep energy high.
Use a Bluetooth headset to free your hands for note-taking and gesturing.
Post-Call Email Template
Have a follow-up email ready to send with Trail access links and a recap.
04. Qualifying an Opportunity
Not all leads are ready to go—but they all matter. Even if a lead seems cold, they may refer others or become a client later. Treat everyone with care.
Are They Working With Another Adviser?
Avoid direct questions like “Are you working with another broker?” Instead, ask what steps they’ve taken so far. If they mention another adviser, send them relevant articles and your contact info. This builds goodwill and keeps the door open.
Classify the Opportunity by Timeline
Imminent (<1 month):
Start onboarding immediately and refer to the “First Phone Call” process.Soon (1–3 months):
Educate and maintain contact. Send a fact find, helpful articles, and set an activity reminder in Trail for 3–8 weeks.Distant (3+ months):
These leads can be the most profitable in the long run. Enter them into Trail as Contacts (not Opportunities), set goals with them, and follow up every 3–6 months.
Other Services
Don’t forget to ask whether they’ve reviewed their insurance recently—this can open another valuable discussion.
Use the BANT Method
Budget: Can they afford it?
Authority: Are they the decision-maker?
Need: Do they actually need mortgage advice?
Timing: When will they be ready?
05. The First Meeting
This is the make-or-break moment. If you build rapport and gather accurate information here, 75–80% of clients will proceed to settlement.
Your Goals:
Build trust
Gather a full picture: income, assets, dependants, structure needs, etc
Identify any red flags (e.g. visa status, trusts, separation agreements)
Collect all supporting documentation
Enter clear notes into Trail (some for diary, some internal-only)
Write down emotional cues or concerns clients raise, even if not included in the bank submission. And always remember: this meeting is an audited step—notes are mandatory.
06. The Responsible Lending Code
As a broker, you are bound by the Responsible Lending Code (RLC) through your role as an agent for lenders. You must:
Act carefully and responsibly
Treat clients respectfully
Help clients make informed decisions
Avoid oppressive or misleading conduct
What Must You Check?
Full disclosure of assets, liabilities, and guarantees
Residency/visa status
Guarantors advised to seek legal advice
Authority and Declaration signed within 90 days
See the official Lender Responsibility Principles for more.
07. Compiling the Application
Authority & Declaration
Never sign or date this for the client. It must be completed by them and uploaded with every application.
Diary Notes
These tell the story of the application. Include any quirks or risks and how you’ve mitigated them. Assume the assessor knows nothing about the client.
Choosing the Right Bank
Always prioritise client fit over commission. Consider:
Which banks are unsuitable (e.g. for small apartments)?
Client preferences or dislikes
Product features (e.g. offset accounts)
Write your rationale in an email so it’s on file.
Keep Clients Updated
If approvals take longer than 3 days, follow up with both the bank and the client. Set a Trail activity reminder to keep communication regular.
08. Submitting the Application
Trail will generate a single PDF bundle including the fact find, uploaded documents, and servicing calculations.
The Litmus Test
Can someone who knows nothing about this client pick up the PDF and understand the full story? If not, rewrite your notes before submitting.
Some banks send receipt confirmations, others don’t. Either way, always set a Trail reminder to follow up in 3 days.
09. The Letter of Offer (LOO)
Once received, check:
Is it conditional (CLO) or final (FLO)?
Is the amount correct?
When does it expire? (Note this in Trail)
Has Section 92 priority (especially for Westpac) been explained?
10. Ordering a Valuation
Valuation Reports are typically needed when requested by the bank post-approval. Don’t order early unless required.
Use Valocity or Property Hub, depending on the bank (check PoliSense). Clients must not contact valuers directly.
Note: It’s “Registered Valuer’s Report” (RVR), not “Registered Valuation”.
11. Dealing with Declines
First, check if the assessor misunderstood
Workshop the deal internally
Confirm with the BDM
If no path forward, update the client with alternative options
Always remain polite and professional—assessors are under pressure too.
12. Structure Meetings
Confirm the structure in Trail and ensure:
Clients understand repayment frequency and break costs
All required forms are signed
Discussion notes are detailed in Trail
Complaints around break fees often stem from a lack of notes, not advice. Protect yourself with thorough documentation.
13. Common Mortgage Structures
Discuss common structures with clients:
Single Fixed Term: Simple but riskier at maturity
Multiple Fixed Terms: Spreads rate risk
Revolving Credit: Flexible, but requires discipline
Offset Accounts: Great for savers, bank-dependent
Example Structure:
$20k revolving credit
$240k fixed for 1 year
$240k fixed for 2 years
Use the Mortgage Recommendation Page in Trail for Disclosure Stage 3.
14. Settlement
Your role doesn’t end at structure approval. Contact your client:
1–2 days before settlement to confirm logistics
On settlement day to celebrate
1 week after to check account setup and send a gift (optional but encouraged)
Gifts ideas: sweet treats, coffee table books, or a bottle of wine (if appropriate).
15. Handling Complaints
Any disappointment from a client is considered a complaint. Record all such feedback in Trail’s complaints register.
3-Step Process:
Address and resolve it directly if possible
Escalate to Jarrod
Refer to Dispute Resolution Service if unresolved
More info: Mortgage Lab Complaints Process