There’s no doubt that the property market is in a downturn – with the Reserve Bank predicting price drops of around 15 per cent.
However, one major developer is predicting the market will be in balance by 2024.
Ups and downs are regular parts of the property cycle. However, one trend that will continue regardless is the growth of loans arranged by mortgage brokers. One reason is simply business considerations and the other is technology post Covid.
70 per cent of loan are now written by brokers – with 410, 000 applications lodged in a six-month period. That market share looks set to grow, partly due to broker success and partly because the banks are devolving so much loan business to brokers
In a recent survey by Momentum Intelligence 86 per cent of broker clients said they were satisfied with their experience with as many as 90 per cent saying they would choose to use a broker gain in the future
Mortgage brokers are now a well-entrenched part of the property landscape such that 87 per cent of consumers said they trust their brokers
Partly as a result of this, partly because customers rarely come into town, banks are closing branches on a rapid scale – meaning that more and more loans will be arranged by brokers who can now take advantage of technologies such as Zoom, Docusign, and Info Track ID.
For example, this month Westpac Banking Corporation announced it is shutting 24 branches. It also cut 24 branches in July, taking the total number of branch closures since January last year to 225.
There’s no doubt that the property market is in for a negative period – but regardless, the broker trajectory is on the way up.
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