Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Broker proposition ‘evolves’ in wake of COVID

reviewing document ta

reviewing document ta
Charbel Kadib 2 minute read

Brokers have been at the coalface of the COVID-19 crisis, with borrowers experiencing financial stress increasingly looking to brokers for multifaceted support, new research has revealed.  

According to the latest research from MyState Bank – which involved a survey of 346 brokers in May – the third-party channel’s service proposition has “evolved” off the back of the COVID-19 pandemic, with approximately two-thirds of respondents reporting an increase in engagement with their customers since the onset of the crisis.

Surveyed brokers revealed that 80 per cent of their clients have experienced financial stress as a direct consequence of COVID-19.

Reflecting on the findings, MyState Bank general manager, banking, Tony MacRae said the results suggest customers are increasingly depending on brokers for support that extends beyond the traditional broker proposition.

“The coronavirus pandemic is causing Australians, especially those with mortgages, to feel anxious about their financial situation,” he said.

“The effects of the pandemic have been far-reaching, not just impacting people’s finances but their emotional state as well.

“During this period, we are seeing the role of mortgage brokers evolve to not only helping customers navigate through this period financially, but providing emotional support too.”

However, the MyState research also suggests that financial stresses may have abated, with 40 per cent of brokers reporting an improvement in their customers’ financial position in response to the easing of COVID-19 restrictions.

Advertisement
Advertisement

Property purchasers put on the back burner

According to the survey, refinancing applications have made up over 60 per cent of new customer enquiries since the outbreak of COVID-19, with borrowers looking to capitalise on record-low interest rates.  

However, the research found that uncertainty in the housing market has prompted prospective borrowers to postpone their home buying ambitions, with over 25 per cent of brokers reporting that more than a quarter of their clients have put their plans on hold.

This follows the release of the Australian Bureau of Statistics’ latest Lending Indicators data, which reported a 4.8 per cent decline in the value of home loan approvals in April to $18.5 billion (seasonally adjusted terms) – the sharpest decline since May 2015.

The result was driven by a 5 per cent fall in owner-occupied lending to $13.7 billion, while investor lending fell 4.2 per cent to $4.8 billion.

PROMOTED FEATURES


[Related: New commission-based charity initiative launched]

Broker proposition ‘evolves’ in wake of COVID
reviewing document ta
TheAdviser logo
reviewing document ta
Charbel Kadib

Charbel Kadib

Charbel Kadib is the news editor on The Adviser and Mortgage Business.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

more from the adviser
remuneration money Conflicted remuneration defined in new regulations

The federal government has released final regulations that define...

empty wallet COVID-19 erodes FHB deposit savings: MyState

Nearly a quarter of those Australians who have dipped into their ...

signatories f6bb COBA welcomes closer ties between regulators

The association for customer-owned banks has said that the MOU be...

FROM THE WEB