Despite the recent collapse in new home loan activity, there is still plenty of business opportunities out there for brokers.
Speaking to The Adviser, Bankwest’s head of specialist banking Ian Rakhit said brokers should not be worried by data which suggests the home purchase market is flat.
“There is still a big refinance market. The properties that were bought five years ago still hold a lot of equity for customers who may be paying unattractive rates,” Mr Rakhit said.
Recent data from the Australian Bureau of Statistics found total new home lending fell for the third consecutive month in February – dropping 2.9 per cent.
Moreover, loans for the purchase of new dwellings declined by 12.0 per cent, falling to the lowest level since September 2008.
But Mr Rakhit said even if the new home loan lending data continues its downwards spiral, brokers can help customers in other ways.
“There are still savings to be had. Brokers can re-examine their customers’ contracts with their current lender or move them to a different lender with better terms,” he said.
“There is still a big mortgage market out there and plenty of opportunities for brokers.”