Any property buyer can tell you that the lending world has changed.
But, changed lending criteria driven by the Australian Prudential Regulation Authority (APRA) is superficial compared to what is about to happen due to technological changes.
Fintech has the potential to radically transform the world of property and finance – yet it also implies that there is a bright future for mortgage brokers.
Currently, lenders have little wriggle-room to compete for the business of good borrowers. Low Loan-Value Ratio, no defaults, large loan -then they can offer a sharp rate. But fintech affords the opportunity to create bespoke loans for quality customers.
The new Comprehensive Credit Reporting regime, where borrowers receive positive credit scores based on their repayment histories, means that fintech lenders believe they can offer a “personalised interest rate for the borrower.”
But, while fintech is the future, mortgage brokers will play an important part in it. The CEO of a volt bank recently said “Home loans are a really complex product suite. The biggest financial transaction that most people will make.
The Australian landscape has changed a lot over the past decades; the days of borrowers having loyalty to their banks and vice versa have gone. But the broker’s role remains strong.