It’s a dynamic time for property in Australia. Last year, the Australian Prudential Regulation Authority (APRA’s) restrictions on investor lending took affect, giving owner-occupiers more opportunity to get a foot on the property ladder.
Meanwhile, lenders are tightening the reigns on loan applications, in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Consumers need to do more to prove their eligibility for a loan.
While the Reserve Bank of Australia has kept the cash rate on hold at 1.5 percent for two years running, the market itself is fluctuating, with prices slowing in parts of Australia.
With the property and banking sector in the media on a regular basis, consumers have a lot of information to sieve through. Which is why Mortgage Brokers play a more important role than ever.
Mortgage Brokers are a human touch stone in a complex market.
Consumers often do a lot of their research online. Many customers use technology to start their mortgage application. But the Deloitte Mortgage Report 2018 found that consumers are still likely to prefer a conversation, ultimately. Sitting face-to-face with a person, discussing their individual situation, gives consumers more clarity about their options, and more confidence choosing the best way forward.
“They [customers] want to know if it is a good deal,” says Joe Sirianni, Smartline director. “They want validation and confirmation. They’re gathering information, but given that it’s a significant purchase, when it comes to the final decision they want reaffirmation or confirmation.”
With around 3,800 mortgage products available in Australia, it makes sense customers are looking for reaffirmation and confirmation. In a complex market, mortgage brokers offers customers a beacon, to help them negotiate, and navigate the terrain.
Brokers help consumers reach decisions, and they stay with them through the application process. As Heather Baister says, the Deloitte Australian Mortgage Report 2018 found “the mortgage broker took the hassle factor out, which was absolute gold.”
On top of that, mortgage brokers keep in touch with consumers long after the loan is secured, ensuring their needs continue to be met.
A strong business
Lenders are fast responding to the Royal Commission’s findings, by making significant changes to their lending practices. Smartline, meanwhile, has been relatively unaffected. Our business remains strong, partly due to our strong values, integrity and customer-led approach.
Smartline has an up-to-date and thorough understanding of the current regulations, and changes in the market, so we can offer franchisees the confidence they need to get on with the business of helping customers. As a franchisee, you are part of a bigger picture, which means you don’t have to worry about compliance, and stepping outside of the margins. We have your back.
Give us a call today if you’re keen to run your own business, helping customers negotiate a complex market, without the stress of compliance issues.