The war between lenders has done little to stimulate broker business, new research has found.
According to The Adviser’s latest weekly straw poll, 80.9 per cent of brokers said they had not seen an increase in business as a result of lender discounts and incentives.
Of the 345 respondents, 19.1 per cent were more optimistic and said they had seen some bottom line benefits.
Where Group’s Todd Hunter told The Adviser that his phone had been ringing “off the hook” since the lender war erupted.
“The battle for market share between Australia’s lenders has gone crazy in the last few weeks. And a lot of this battle has been played out in the media, which is great news for brokers,” Mr Hunter said.
Mr Hunter said the media attention being given to the price war was encouraging borrowers to go and review their current rate.
“With so much happening in the market place, it is easy for borrowers to become confused about who is offering the best deal for their needs. Brokers are in the perfect position to help clear up any confusion and help them into a loan that is perfect for them,” he said.
But not all brokers were enjoying a significant uptick in business opportunities.
Elders Home Loans Brad Quilty said not enough time had passed to see any true benefits from increased lender competition.
“I can’t really say that I have seen an increase in business at the moment,” he said.
“I don’t think enough time has passed for brokers to see any true bottom line benefits. I guess we will just wait and see. I don’t think this lender war is going to end any time soon, so it will be interesting to see what happens from here on in.”
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