At Vision, you are The Expert Mortgage Broker.
Everywhere you turn people are coming out of the woodwork advising borrowers to seek a better deal and to move lenders or negotiate a better deal with current lenders.
This is regularly being discussed amongst breakfast TV hosts, social influencers, high profiles, so-called “Finance Gurus” and everyone else that has an opinion.
But the reality is that not only have interest rates risen at record rates (albeit from record low levels) refinancing or “getting a better deal” is not just a matter of a simple application, rapid approval and consequently, the problem is solved.
Recently, we were in discussion with a high-level mortgage executive dealing with high earning borrowers that had a recent scenario that really rang some alarm bells. This borrower had sold their family home hoping to borrow 700k. But when the application was submitted, they could now only borrow 200k. The result is that there is a real likelihood this family will have to rent for an extended period.
Sure, this is an extreme example. However, there is no doubt that every borrower qualifies for significantly less than prior to May 22 when rates began to climb.
Hence, if existing debt is above what a borrower qualifies for, they are officially stuck with their current deal, no matter what the experts say.
Or are they?
Lenders who have a fairer interest rate buffer do exist, lenders that take actual payments of additional debt, not loaded payment amounts. Sensible, affordable and cost-effective consolidation strategies. Responsible lending options with quality lenders that aren’t widely known.
It’s my belief that the current interest rate buffer at between 2.5-3.0 % is excessive given rates are expected to rise another 4 times this year, adding 1% to the official interest rate.
There is simply no way rates will rise by 2.5 -3.0 per cent. Any buffer should be representative of future interest rate increases. Put simply, the buffer needs to change.
In addition, high quality educated mortgage brokers may be able to assist.
As a mortgage broker the best thing you can do is stay in regular contact with your client, particularly in these challenging times. We recently published an article with Vision’s tips to assist our broker’s to help their clients with interest rate uncertainty. This article explained the importance of maintaining regular contact with your client base, in the form of messaging, calling, posting video content, and sending regular articles. We know that by offering this assistance, you are already providing a superior level of service to your clients. You can view this article by clicking the button below:
At Vision Aggregation, we have built a superior partnership of expert brokers. How? By assisting our brokers to provide the right messages to their clients. When our mortgage brokers join Vision, we expose them to the right information to support them, their business and their clients. We are dedicated and committed to educating them and turning them into superior experts, something that no large aggregator without a boutique feel could provide.
Remember, when you join Vision, you are The Expert. With Vision, you can provide better outcomes for your clients.
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