Broker flooded with phone calls from anxious borrowers

The official cash rate rose by 125 bps to 4.35 per cent this year, with many economists expecting the cash rate to rise further in February 2024.

This has thrown challenges at borrowers and prospective first home buyers looking to enter the market, the broker said.

“I’ve never had these types of conversations before in my 21-year career. It’s difficult to hear them talk about financial hardship,” she told The Adviser.

The broker flagged that, since the Reserve Bank of Australia (RBA) began raising interest rates in May 2022, borrowers have found it harder and harder to keep up with repayments.

“Moreover, many clients on incredibly low 2 per cent fixed rates are now jumping up to 6 or 6.5 per cent,” Ms Persoglia noted.

“This is a time when people are incredibly worried. We have been providing a lot more reassurance and doing whatever we can to prepare clients for that transition into their new repayment.”

Ms Persoglia said she has been renegotiating and refinancing her clients’ mortgages to lower rates (where possible), working with lenders for solutions, and helping her clients budget in order to manage increasing loan repayments.

Financial independence vital for women

Along with providing reassurance to concerned clients, Ms Persoglia is also running programs to increase financial literacy among women so they can become financially independent.

Her passion for this issue came from personal experience, after being unable to escape an abusive relationship with her former partner when she was young because she was not financially independent.

“I learned early on how important it is to have my own money so that I could have the flexibility, freedom, and choice to leave,” she said.

“I stayed in that relationship for well beyond the time that I should have because I couldn’t afford to leave. This plays a very big part in me wanting to educate women on how to set themselves up early in their lives.”

She therefore founded her brokerage Property Before Prada to educate women about how to set themselves up financially and prioritise becoming financially independent.

“Everyone’s showing off their beautiful handbags and shoes on social media and those things are nice to have,” Ms Persoglia said.

“But they’re not a necessity. Being financially independent is absolutely necessary. With the name Property Before Prada, I’m saying we should consider financial wellbeing before purchases that give us instant gratification.”

Ms Persoglia has also developed educational programs, including masterclasses for young female first home buyers about how to set goals and what steps to take to enter the property market and released a rebuild program in collaboration with a financial planner, a family lawyer, and a life coach to help women who have been through divorce, separation, or the death of a partner rebuild their lives financially.

No shortcuts to being a good broker

When asked how new brokers could succeed, Ms Persoglia advised them to build their skills and knowledge and partner with businesses and mentors that could help them grow and develop.

She concluded: “Brokers must buckle down for a couple of years, grab every lead, and grow referrals. You can’t be a part-time broker. You need to have a two-year plan set in front of you and work hard to build your credibility.”

You can find out more about Katherine Persoglia at the Elite Broker Live podcast session at the Better Business Summit at The Crown Melbourne on 14 March 2024, where she will share her insights and experiences as a mortgage broker and top tips for other brokers to thrive in their businesses.

Better Business Summit 2024

The Better Business Summit and Awards 2024 will also be held in the following locations:

• Thursday, 15 February at The Star, Sydney.
• Thursday, 22 February at the Convention Centre, Adelaide.
• Thursday, 29 February at Hyatt Regency, Perth.
• Thursday, 7 March at Sofitel Brisbane.
• Thursday, 14 March at The Crown Melbourne.

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[Related: Better Business Summit 2024 launches]