There’s no doubt that Covid has radically changed the property market.
It has also revolutionised mortgages.
With 67 per cent of loans now written by brokers, the old business model of just walking into your branch is dead.
And, with Covid often causing banks to close branches, the only reliable fact is that a borrower will be able to meet a broker over Zoom.
Where once, banks required brokers to meet a client in the flesh, they are now more comfortable meeting digitally and for the broker to take a record of the meeting.
And consumers are now more comfortable discussing their finance over, say, Teams or WhatsApp.
As a result, its likely that brokers will become entrenched in the landscape of the Australian property market.
This is particularly the case now that rate rises are appearing on the horizon – just going to your regular bank may not give you the loan you need.
With more than two thirds of loans now written by brokers, its likely that this figure will rise in years to come.
Undoubtedly we are getting to the top of this property cycle. But, for brokers, whether it’s a purchase or a refinance, their roles are likely to become more important.
Its too late to put the genie back in the bottle – brokers will continue to be a key intermediary for banks lending on property.