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ISCOVER
Jessica Darnbrough
Brokers are predicting a major shift in the market segments that will yield the greatest volumes in the months ahead according to the latest quarterly sentiment survey.
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The Adviser’s Q4, 2010 sentiment survey has revealed that investors are no longer expected to be the main driver of broker business heading into the New Year.
Instead, 71.0 per cent of brokers anticipate that refinancing activity will drive their bottom line.
Of the 256 brokers polled, 17.6 per cent said they expected investors to be the most active over the coming quarter – down 31.5 per cent on this time last year.
Just 0.4 per cent of brokers thought first home buyers would provide the most business opportunities moving forward, while 11.0 per cent said upsizing/downsizing opportunities would drive their business.
Home Loan Express managing director Earl Sommerlad told The Adviser that refinancing enquires had jumped dramatically ever since the RBA lifted the cash rate 25 basis points in November.
“The latest interest rate movement has not done our business any harm. In fact, I welcome the rate hikes because they encourage borrowers to review their current financial situation. I believe all borrowers should review their current financial arrangements at least once every three years irrespective of what the RBA and banks are doing with rates,” Mr Sommerlad said.
“But in addition to increased refinancing activity, I also do not see any areas of depressed market conditions in my business district – Newcastle and greater Hunter region. All in all, I think 2011 should be a good year for us.”
