Login
ISCOVER
More borrowers will seek broker support if rate cuts arrive this year, so brokers need to prepare now, according to Connective’s executive director.
With the cash rate expected to decrease this year, the executive director of aggregation group Connective has urged brokers to be preparing now for a busy year ahead.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Following a year of stable interest rates, rising loan sizes, and evolving consumer expectations, the year 2025 will likely be one marked with new challenges and opportunities.
According to Haron, the year 2025 will likely see growing demand for broker services.
“The biggest question is not ‘if’ rates will drop but ‘when’ and by how much,” he said.
“Brokers should prepare for a period of significant borrower activity in the second quarter of 2025 as rate cuts materialise and consumers seek better deals.
“Showing a mix of expertise and support through proactive client engagement will be paramount as borrowers evaluate whether their banks are passing on rate cuts in full and explore refinancing options.”
Other trends he expects to manifest in 2025 include more opportunities in commercial and non-prime lending.
“Tighter lending criteria from major banks have created a golden opportunity for brokers to support clients through alternative funding solutions,” he said.
“We’ve seen an unprecedented 15.5 per cent year-on-year growth in commercial settlements, demonstrating the value brokers can offer in this space.
“Brokers equipped with the right education and tools will find new revenue streams in 2025, especially in debt consolidation and non-standard lending.”
The Connective leader also suggested that digital transformation would also be a key trend in 2025, saying: “Consumer expectations for seamless, technology-driven experiences are only increasing. Platforms like Connective’s very own Mercury Nexus will continue to play a pivotal role in helping brokers meet these demands, offering tools like real-time servicing calculators, automated client portals, and AI-driven lender policy insights.
“Brokers are already relevant but those who embrace digital transformation will make themselves highly visible and therefore, more competitive in an increasingly digitised market.”
As such, he said brokers should be prepared to adapt and evolve this year.
“Expertise and adaptability will define success in 2025. Whether it’s guiding borrowers through rate cuts, exploring new opportunities in non-prime, private lending, commercial, or simplifying complex processes with cutting-edge broker technology, the opportunities are there for those who understand what is available to them and prepare,” Haron said.
“By staying proactive and embracing innovation, brokers can not only thrive in this evolving landscape but also set themselves apart as indispensable advisers to their clients.”
[Related: RBA leaves rates on hold but hints at future cuts]
JOIN THE DISCUSSION