Two letters, but a world of difference

These days, during the COVID economy, the majority of my home loan enquiries are coming from two types of Australians, depending on how COVID has affected them. 

In camp one, there’s those with a home loan whose income levels have changed for the worst. Their business has slowed, or their employment has been cut back or they’ve lost their job. Adjusting their home loans and other major debts to accommodate their new scenario is a common request these days. 

In camp two are those whose circumstances haven’t changed or have improved during COVID They are ready to capitalise on record low rate and government grants.

Both camps are in a position to leverage the competition between lenders right now, and as a broker I’m placed well to handle that comparison and negotiation for them. 

Some people, surprisingly, still head straight to their existing bank to secure that new loan or refinance a current one. This baffles me. It’s 2020 and believe me when I say, loyalty doesn’t pay these days. 

Yes, it’s possible that the lowest refi rate, or the most suitable new loan we secure for a client could be with their current bank. But we’re more likely to achieve the right product match by exploring the universe of loans and thoroughly exploring our client’s best interests. 

If your clients are talking about the need to refinance now, or alternatively they are talking about growing their property portfolio, share this list with them so they understand the benefits of seeing a broker over a banker.

It’s only two letters that separate these two professions, but for your clients it could be a costly distinction.

*Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence no. 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.