Brokers have a vital role to play in explaining the fast-changing lending landscape to borrowers, according to NAB.
Anthony Waldron, NAB’s executive general manager of broker partnerships, said APRA’s crackdown on investor lending has given brokers a great opportunity to educate consumers about the changes and how it could affect them.
“I actually think brokers are in a fantastic position to help with that opportunity because these changes potentially bring confusion to consumers out there,” he told The Adviser.
“Brokers are in a fantastic position to offer the help and guidance and advice that’s needed to customers to make sure that they understand those changes, to make sure they can make informed decisions and make sure that they get the right deal that they’re looking for when they’re out there shopping around,” he said.
“I think it’s a period of change for those brokers that embrace this opportunity and are able to make the most of it.”
Mr Waldron said that it is a broker’s duty to make sure that people understand the changes in the market.
“It sets them up to be that trusted point of help for customers during changes like this,” he said.
“They’re in a much better position to be able to analyse that than the individual customer sitting at the back end, and that’s a fantastic position for the broker to be in.”
Mr Waldron added that brokers themselves could be forgiven for feeling overwhelmed with the “avalanche of information” being provided to them from their respective lenders.
“Many lenders are making changes and they’re making them in short, sharp announcements,” he said.
“That’s a pretty hard situation, because you’ve got to be able to absorb all that information, you’ve got to be able to analyse it, and you’re going to be able to use it in the next interview you have with a customer, so that makes it pretty hard times for brokers as well.”
[Related: Brokers favour non-banks for investor loans]