With one of the big banks increasing variable home loan interest rates, it is the perfect time for brokers to show their worth to new and existing customers according to the head of the Finance Brokers Association of Australia (FBAA). The 0.2 percentage rise for both investor and home occupier loans by Westpac takes effect on November 20.
“This is not a surprise as lenders are facing greater scrutiny in regulatory requirements but again it is the customer that unfortunately has to pay the price,” said FBAA Chief Executive Officer Peter White.
“I predicted this rise some months ago even though official cash rates were at record lows. It is not surprising that banks were going to increase their capital adequacies and that borrowers would pay the price in the interest areas. So this is expected albeit not welcomed.”
“It presents nonetheless an ideal opportunity for the broker channel to show our benefit to customers by helping them navigate through the maze of the many options available to them.”
“Refinancing is one option of course but more than that, brokers have the knowledge and the contacts to get their customers into an arrangement that best fits them when circumstances change.”
Mr White says a rate rise is usually an emotional experience for clients and customers but it is the brokers who are best able to communicate and give them clarity on just what an interest rate means to them and the household budget. “This is a big part of our ongoing training and personal development programs. Our brokers get schooled into communicating the right messages to their customer, alerting them to the whys and wherefores of any rate movement and keeping them at all times in the loop.”