Many have argued that the stringent government response to COVID-19 has placed the property market cycle closer to another downswing. However, so far, property value declines have been fairly mild.
And the government’s stimulus package may well mitigate many fears. To date, the dwelling market has only contracted 0.4 per cent.
In fact, egged on by Canberra and the Reserve Bank, it appears that the banks want to keep funding the property market.
With rates at all-time low and some pressure to ease loan serviceability tests, Australians may find it easier to get a mortgage than anticipated a few months ago.
And for existing borrowers, things may also get easier with banks extending interest only periods.
Now, more than ever, brokers will have to earn their keep; banks are increasingly discounting their rates for good-quality clients a broker may source.
Of course, the banks are carrying out way more due-diligence on borrowers than in the past – especially for borrowers employed in possible Covid affected industries
But with the introduction of Best Interest Duties, brokers may well be seen more as a trusted advisor than just a sales guy