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Brokers unsettled by political instability

by Reporter4 minute read
Brokers unsettled by political instability

A new survey has found that mortgage brokers are growing increasingly concerned about political instability, including the dual citizenship saga unfolding before parliament.

Non-major lender MyState surveyed its broker network and found that almost half of respondents were “very” or “moderately” concerned about a potential regime change in Canberra.

Over 40 per cent of concerned brokers fear a change of government would create policy uncertainty which could disrupt activity in the mortgage space. 

A further 40 per cent cited possible changes to negative gearing and tax policy by a new government as a cause for concern.

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An additional 12 per cent of respondents were worried that a new government would implement stringent immigration policies that would lock “affluent” foreign investors out of the housing market.

A potential change in lender attitudes also triggers fears among brokers, with 28 per cent of respondents concerned about potential channel conflict with banks.

Over 20 per cent of brokers were worried about the possibility that banks would move away from the third-party broker channel, and 21.5 per cent were concerned about a possible downturn in the housing market.  

Conversely, when asked about their expectations for the coming year, respondents were optimistic.

Over 20 per cent of respondents predicted “strong” growth in 2018, with a further 47 per cent expecting “moderate” growth.

Moreover, 19 per cent of brokers expected “incremental growth” in their business, while 6 per cent predicted no growth but confident they would maintain profitability.

Less than 1 per cent of brokers were expecting reductions in revenue and profitability.

MyState Group executive of broker distribution Huw Bough believes that the survey results are largely positive, despite concerns over political instability.

“Political uncertainty can inflate concerns, but the underlying theme here is positive,” Mr Bough said. “The vast majority of brokers are looking forward to a productive year, despite signs of a softening housing market in major centres.”

[Related: Brokers ‘shouldn't be worried’ about Royal Commission]

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