APRA crackdown on investors drives unexpected volumes for brokers

“The uncertainty in my opinion has bolstered my business,” Mr Trewin said, adding, “In fact, we have had 60 per cent growth over the past 12 months, and [are] spending a lot more time with our clients discussing their monthly living costs and documenting this”.

Tandem Uehling’s Gregory Uehling noted in the current low-interest rate environment, many prospective and existing customers continue to focus on rates.

“With rates at all-time lows, they think they can borrow more at those actual rates,” Mr Uehling said.

“I do explain that their calculations are off since they need to understand that each lender uses their own assessment rate [and] they have no clue what that is.

“This is another reason why I think the market is becoming more in tune with brokers as they see the value proposition with our tools to assist them try to execute what they are trying to achieve.”

Byblos Finance’s George Karam echoed this sentiment, saying that while the lending environment has been challenging, it still represents a “real opportunity to reinforce our value proposition”.

Mr Karam said that in the wake of the APRA changes, his business has seen the strengthening of relationships with new lender partners and an increase in new clients, particularly those using a broker for the first time.

He added that his business has invested heavily in its IT systems to facilitate communication with clients and boost their engagement, as well as increasing its back office capacity in preparation for future growth.

“The business is still being shifted significantly and this is still being documented, and the flow-on effects are still in planning and exploitation.”

[Related: Lending curbs ‘making it harder for everyday people’]