Managing a mortgage trail book effectively is essential for Australian brokers aiming to optimise their income. Trail commissions, which are ongoing payments brokers receive for maintaining clients’ loans, can form a substantial portion of their income. 

However, inefficient trail management can lead to lost revenue, missed opportunities, and frustration.

To improve your trail management, it’s vital to have the right tools and strategies in place. With the help of platforms like Track My Trail, brokers can easily monitor their trail income, track client movements, and identify areas where their business may be at risk. 

Using tools that streamline trail management enables brokers to grow their business while avoiding unnecessary mistakes.

Understanding Mortgage Trail Management

Mortgage trail management refers to the ongoing process of tracking and optimising the income generated from clients’ loans after they have been settled. Brokers receive a small percentage of the loan amount as a commission for as long as the loan remains active. 

Efficient trail management helps brokers keep track of their revenue, understand which clients contribute the most, and identify areas where they are losing income.

Key Components of Trail Management

Effective trail management involves several key components, such as:

• Tracking the status of clients’ loans: Knowing when loans are repaid, discharged, or refinanced.
• Identifying lost trail: Recognising when trail payments are declining or when clients are switching lenders.
• Client retention: Implementing strategies to retain high-value clients and increase trail income.

Why Effective Mortgage Trail Management Matters

Proper mortgage trail management enables brokers to optimise their income, maintain strong client relationships, and ensure the long-term sustainability of their business. By keeping track of their trail commissions, brokers can make data-driven decisions that support growth.

Streamlining Your Trail Book

As a broker, you likely manage a large number of clients across various lenders. Over time, this trail book can become difficult to manage manually, especially when clients are constantly changing their loan arrangements. 

The goal of efficient trail management is to streamline this process so brokers can focus on their clients instead of spending hours crunching numbers.

Common Challenges in Mortgage Trail Management

Mortgage trail management presents a few key challenges for brokers. Here are the most common issues brokers face:

Tracking Lost Trail

One of the biggest challenges is tracking where trail payments are being lost. Clients often refinance, pay off their loans, or switch lenders, and brokers may miss these changes without an effective tracking system. 

This can lead to a significant drop in income, especially when clients making large repayments are not promptly identified.

Overwhelming Data

Brokers are often inundated with data from various lenders, clients, and loan products. Without proper tools, it becomes easy to overlook vital information, such as clients’ loan balances or upcoming repayments, which can impact trail income.

Client Retention

Client retention is another challenge in trail management. Brokers must maintain strong relationships with their clients to ensure they stay with the same lender, avoiding a reduction in trail payments. 

It’s essential for brokers to know which clients bring in the most revenue and focus their efforts on maintaining these relationships.

How to Manage Your Mortgage Trail Effectively

The most effective way to manage your mortgage trail is by using a dedicated software solution. Track My Trail offers a platform that provides brokers with clear insights into their trail book. 

With just a few clicks, brokers can track their trail income, identify lost or gained clients, and see where their income is coming from.

Benefits of Using a Trail Management Tool

Using a tool like Track My Trail can help brokers:

• Track trail income: Easily monitor changes in income due to client movements, loan repayments, or refinancing.
• Client insights: Quickly identify which clients are the most profitable and prioritise retention efforts.
• Analyse lender performance: Understand which lenders are providing the most revenue and use this information to negotiate better deals.

How Track My Trail Works

With Track My Trail, brokers can upload their data from supported aggregators like AFG, Vow, Finsure, and others. The system will automatically calculate trail income, show which clients have been added or lost, and provide insights into clients making large repayments. 

This real-time data is invaluable for brokers aiming to grow their business.

Tracking Lost Trail

One of the main advantages of using Track My Trail is its ability to identify lost trail from discharged clients and those making large loan repayments. 

By spotting these trends early, brokers can take action to either retain these clients or identify new opportunities to replace lost income.

Implementing Client Retention Strategies

Client retention is key to maintaining a steady trail income. To ensure that your clients stay with you long-term, consider the following strategies:

Regular Client Communication

Keeping in touch with your clients regularly is crucial for retaining them. Whether it’s through emails, phone calls, or newsletters, consistent communication helps remind clients of your value. 

You can also offer assistance with refinancing or loan reviews to ensure their needs are being met.

Offer Value-Added Services

Providing value-added services, such as advice on investment opportunities, refinancing options, or the best loan products, helps strengthen your relationship with clients. 

When clients feel that you’re actively helping them achieve their financial goals, they are more likely to stay loyal.

Identify High-Value Clients

Using a tool like Track My Trail, you can identify which clients are generating the most trail income. By focusing your retention efforts on high-value clients, you can ensure that you’re not only maintaining your trail income but growing it steadily.

How to Track Trail Income Effectively

Tracking trail income is no longer a cumbersome task thanks to trail management tools. With platforms like Track My Trail, brokers can easily monitor their trail book with the following features:

Monthly Snapshots

Every month, brokers can receive a snapshot of their trail income, showing how much was gained or lost. This makes it easier to assess whether any adjustments need to be made to their client or lender strategies.

Visual Data Representations

With clear charts and graphs, brokers can quickly analyse their trail income, client additions, and losses. This visual data representation helps brokers make decisions at a glance and eliminates the need for time-consuming manual tracking.

Automating Manual Tasks

Using Track My Trail, brokers can eliminate the need for manual spreadsheet management. The software automates the tracking process, ensuring brokers don’t waste time on tasks that can be done with a click of a button.

Mistakes to Avoid in Mortgage Trail Management

Even with the right tools, some brokers still make mistakes in trail management. Here are some common pitfalls to avoid:

Not Tracking Lost Clients

One of the most common mistakes is not tracking when clients leave or refinance their loans. This results in lost trail income without the broker realising it. Using a trail management tool can help you identify these changes as soon as they happen.

Failing to Prioritise High-Value Clients

If you don’t identify which clients are your most profitable, you may waste time on clients who don’t bring in much revenue. Focus your efforts on retaining clients who provide significant income and invest in nurturing those relationships.

Overlooking Data Trends

Brokers should not only track immediate changes in their trail income but also look at long-term trends. By observing which clients have been with you the longest or which lenders are more profitable, you can make informed decisions about your business’s future.

Frequently Asked Questions

How Can I Track My Mortgage Trail Income?

To track your mortgage trail income, you can use platforms like Track My Trail. These tools automatically collect data from your lender aggregators, analyse it, and provide you with real-time insights into your trail income.

What Happens If I Lose Trail Income?

If you lose trail income due to clients refinancing or paying off loans, it’s important to identify these losses early. You can either work on retaining these clients or focus on acquiring new clients to replace the lost income.

How Can I Retain More Clients?

Client retention is key to growing your mortgage trail income. Regular communication, offering value-added services, and identifying high-value clients are all strategies that can help you retain clients and maintain a steady stream of income.

Conclusion

Effective mortgage trail management is essential for Australian brokers looking to optimise their income and grow their business. By using tools like Track My Trail, brokers can streamline their processes, track their trail income, and identify opportunities for growth. 

Focus on client retention, identify high-value clients, and avoid common mistakes to ensure long-term success in your mortgage broking career.