The interest rate rise makes the Broker relationship invaluable…
It’s been coming for a while according to the economic wizards, at almost every institution.
Global inflation, domestic inflation and asset price bubbles, have finally forced the RBA to pull the trigger and increase the official interest rate by 0.25%.
Let’s not forget that Australia has been operating within an emergency interest rate environment for quite some time, add to that the huge Government stimulus and something had to give.
However, it’s not time to panic!
It’s time to have open communication lines with your trusted broker and make informed decisions based on concrete facts.
When an applicant applies for a home loan today, they are immediately stress-tested with a rate well above the actual rate, additionally all other mortgage debt is increased to ensure borrowers have factored in rate rises. Special offers and discounted rates will always be available in the market place and brokers have the best access and knowledge of what’s available.
Savvy brokers will review their book and make regular contact with their clients through newsletters and news alerts to ensure borrowers are informed.
Digital media is a cost effective and valuable forum to ensure your clients are in no doubt, they have their brokers ongoing support.
Is it any wonder 60-plus percent of mortgages are processed by mortgage brokers.
The next 12-18 months will be interesting times. Knowledge will be invaluable. Panic is dangerous and counterproductive.