While the new, stricter regulations and the cooling of property prices seem like a challenge, these very aspects may offer mortgage brokers with a silver lining.
When regulations change in the housing industry, it serves to drive a higher level of professionalism, resulting in a boost in the reputation of Australian mortgage broking. Stricter regulations seem to make consumers comfortable, which helps mortgage brokers and boosts the industry.
The rest of 2018 will likely see a lot of media coverage of big banking scrutiny and the Royal Commission. Brokers have a great opportunity to thrive in this kind of environment. People are already feeling dissatisfied with their banks.
Calming Property Prices
It appears the Sydney real estate boom is coming into a calm. As this winding down period occurs, first home buyers can take advantage and get their foot in the door of a new home.
The first home buyer’s scheme is supported by the government, which resulted in getting rid of the stamp duty. Therefore, lenders are offering new products and further incentives along with low rates for first home buyers.
2017 saw an increase in first home buyer commitments, rising to 17.6 per cent by October, which is the highest reported since July of 2013.
Continued Lending Changes
The macro-effective measures of the APRA had a huge effect on the market over the past year, which will likely continue into 2018.
The broker’s job has become more challenging due to these changes, but the value of their services has exponentially increased. It will be harder to borrow money in the coming 12 months, so Australians will be seeking help from brokers.
Mortgage brokers must stay up-to-date on the policy changes and pricing, so they can not only help their clients obtain loans, but also educate them throughout the process. This will help them build a grand reputation amongst their clients, which should boost their overall reputation across Australian suburbs.
Australians will see wide range of innovative and clever home loan products in the coming months, especially coming from niche mortgage agencies and non-bank lenders.
Restrictive lending is and will create many opportunities in this new era of lending in the mortgage industry. Australians should keep their eyes open on the latest offerings and news in the coming months.
The Role of Technology
Technology is constantly growing and that will continue in 2018. You don’t have to be a tech-savvy mortgage broker to use technology to boost your services and products to your clients and consumers. Technology is vital in today’s world to be successful in the financial services industry. Digital solutions will be a driving force for brokers across the country.
Learn more about digital technology and how it can boost your broker service. It will help you streamline your business and its processes, so you can focus more on your clients and on working your business.
First Choice Mortgage Brokers are a Sydney Mortgage Broker operating under the Australian Credit Licence Number: 382370