It seems there is a good opportunity in the current market for brokers to refinance their existing clients and also to capture other home owners looking to refinance. We look at the recent statistics on the refinance market, and discuss the three things brokers can do right now, to make the most of this refinance trend.
By Graham Doessel, Non-Legal Director MyCRA Lawyers.
Lower interest rates seem to have contributed to a growing number of refinanced loans in the current market – and this could continue in the future following the abolition of exit fees.
Official figures from the Australian Bureau of Statistics (ABS) show September’s Housing Finance Figures have risen for refinanced loans for the ninth consecutive time since January this year:
This continuing shift in activity indicates that more borrowers are looking outside of the major banks for better deals in their home loan – and this is good news for brokers.
So here are three things brokers can do right now to put themselves in the best position to capitalise on this trend…
1. Build quality relationships with existing clients.
The simplest thing brokers can do to take advantage of the refinance trend is to foster the relationship with their existing client database.
A broker who has kept in touch with their client in a natural way is the person that client will seek out when they have questions about their suitability to refinance their loan.
Discussing market trends and even informing them of different loan products during this process also helps to inspire decision making in this area and allows the client to be aware that shopping around for a better loan doesn’t necessarily mean changing brokers.
2. Cultivate an online presence in the marketplace.
In the digital world – convenience has proven to be the key to capturing new clients. Some borrowers may prefer to manage their affairs online, and that means it could be advantageous to have an online presence in order to capture this borrower.
For instance, if borrowers are looking to step away from a major bank, they may do research online looking for a better deal – or they could look to complete the entire transaction in the virtual world.
Your marketing in this area could be really critical to your future and really move your brokerage in the right direction. Niche market brokers are particularly successful in this area, regardless of business size.
3. Credit file knowledge and education.
People in existing home loans make credit mistakes too. In fact, many times they don’t know about bad credit until they apply for the new home loan. But if their credit check reveals bad credit – they may have to stick out the existing loan until the listing drops off.
But if the client was about to save tens of thousands of dollars in the new loan – the best thing we can do for them is get an assessment of their credit file and then understand whether the credit listing on their credit file is potentially disputable.
Considering that a recent survey by Veda shows 80% of people have never checked their credit file, it is no wonder that mistakes can go along unnoticed until people apply for credit.
MyCRA Lawyers can help clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.
Listings such as defaults, Writs, Judgments and clearouts are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there.
That’s where we come in – to advocate the credit file dispute on their behalf.
So if you want to help your clients repair their bad credit and possibly save a deal or two, then you want to discuss this with us at MyCRA Lawyers today.
In matters of credit file dispute – we provide your clients with the added credibility and muscle of a law firm, without the typical lawyer’s price tag attached.
Call MyCRA Lawyers today on 1300 667 218 and find out how credit repair will work for your clients. Also ask about our generous broker referral system.
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