Brokers should pay close attention so they can lead borrowers to alternative solutions
While consumers mainly think about getting the appropriate loan rate for their situation, 40% of them cited receiving a low valuation rate for their property as being a top concern for 2019, according to research conducted by Pepper Money and RFi Group. The rate suggests that Australia’s current property market weighs heavily on the minds of consumers.
The research, which surveyed 1,126 borrowers in January, also revealed that 37% of consumers worry that property prices could keep them from getting onto the property ladder. Almost one in three were concerned about being turned down by their bank, reflecting the pressures brought by the big banks’ tightening lending criteria.
In a statement, Aaron Milburn, Pepper Money director for sales and distribution, said brokers should pay close attention to what worries borrowers, so they can reassure them that available alternatives exist.
“With a volatile property market and pullback from the big banks in certain parts of the lending market, consumers will be looking to trusted experts more than ever to help them determine the best solution for their individual situation,” Milburn said.
“Consumers look to brokers and to lenders to help them navigate the complexities of the lending process. Their minds are on bigger issues, like how to get the best rate possible and whether their property will get a decent valuation.”
Milburn added that a wide array of lending solutions is available to consumers because of alternative lenders, and consumers need to know that these quality alternatives exist beyond the big banks that continues to tighten their lending criteria.
