Lower interest rates don't translate to lower loan assessment rates, he says
One of Australia’s leading regional brokers says loan assessment rates and his clients’ capacity to borrow are two of the key issues facing brokers in the market.
According to Hubbl.it’s Jarred Spurr, who has worked in the finance sector for 11 years and has been a mortgage broker for six years, there needs to be more work done by lenders to decrease assessment rates.
“You have some banks noting assessments rates above 10% for some transactions, with interest rates at low 6%,” Spurr said. “It’s unrealistic and extreme.”
Spurr said assessment rates were causing clients unnecessary financial stress and impacting their ability to make financial gains.
Based on the NSW Central Coast , Spurr, who was an excellence awardee
in The NAB Regional Broker of the Year category at the 2023 Australian Mortgage Awards, has a mixed client base, ranging from first home buyers to investment, SMSF and commercial clients.
He said all types of property are in demand now.
“We are assisting people in purchasing luxury properties but also assisting with first home buyers that are trying to get into the market,” Spurr said.
“The Central Coast, in particular, has a massive array of properties which really allows us to assist with all client types.
“We pride ourselves on being able to provide options for all clientele and my brokers are accredited with over 40 lenders nationally and we make sure that we truly are a brokerage which provides options for lending needs.”
Spurr said Hubbl.it wouldn’t turn a client away unless its team had explored all options.
“We believe we will find an option for any client,” he said.
That said, thanks to the challenging economic times, and despite the RBA pausing interest rate rises for the fourth month in a row, clients are still experiencing high levels of stress.
He said his business is still seeing the impact of previous rate rises.
“Daily we are having discussions with our clients on their current rates and how we can minimise the impact of the rises for them,” he said.
“I don’t feel there has been enough time to really see any confidence in the market yet, people are still very wary of the increases and potential future increased as well.
“Whilst there seems to be a slight increase in buyers at the moment, I think we will need to wait another three to six months to see the confidence bounce back.”
According to Spurr, his business is doing well.
“We have an excellent brokering and admin team that’s extremely adaptable and has adapted to a vastly-changing finance industry. We have an extremely strong client base and a fantastic pipeline.
“Our referral agents know that we are the best on the Central Coast and they know we will go the extra mile for our clients’ needs. This philosophy of ensuring our clients are provided all the options available to them, has placed the business in a fantastic place.”
When it comes to growing a mortgage business, Spurr said brokers should be proactive in everything they do.
“I ask all of my brokers, ‘what makes you so special to everyone else?’ A proactive broker is always going to succeed over a reactive one.
“Whether that’s with your leads and referral agents or your clients, it’s key to always be proactive. If you’re stuck for leads, you need to be proactive and seek better relationships with the partners.”
However, Spurr said brokers should ensure they have a good work/life balance.
“Sacrificing personal time for you or your family is not acceptable and will never be acceptable in my company.
“I have been in a place where work comes first and been in an environment where you’re made to sacrifice personal/family time and it’s extremely unhealthy.
“I personally am extremely happy and less stressed in my work life, but writing the same numbers as I was previously.
“If you’re a broker wanting to reduce your work stress and increase your personal time, email me and I will show you how.“
For Spurr,the job has plenty of advantages.
“The obvious one is you’re helping people achieve their dreams and helping them with their futures but for me it’s also the relationships you make not only with your clients, but also your staff and key partners.
“It’s a wonderful industry to be involved in and it always provides you with great opportunities. I have clients that I see weekly and interact with on a personal level, clients that are now friends and I’ve watched kick goals in their personal and work life.“
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