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ISCOVER
Staff Reporter
Just over half the industry is bracing for a tougher financial year ahead, according to the latest straw poll conducted by The Adviser.
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Of 279 respondents, 53 per cent expect 2011/2012 to be worse that the current year. However, a significant number – 34 per cent – expect it will be better, with 13 percent saying they expect 2011/2012 to be the same.
Australian Bureau of Statistics data show the number of home loan approvals is now at its lowest level since 2000.
MFAA President Joe Sirianni agrees with the results of the poll: “Consumer confidence is down, there’s still talk of interest rate rises, and concerns in Europe are affecting the local market,” Mr Sirianni says. “There’s lots of uncertainty.
“The only glimmer of hope is that we still have very low unemployment, and we still have an overall shortage of housing accommodation in Australia that will underline demand.
“To maximise the coming year’s potential, brokers should love and cherish their customers,” Mr Sirianni said
To make the best of the coming year, however, brokers need to reassess their relationship with the majors, says Graham Weinberg, owner of Canico
“The banks are having it all their way at the moment – the broking industry faces its biggest threat in 15 years.
Mr Weinberg believes that there has never been a more important time for brokers to consider which lenders they do business with.
“See who wants to be partners and who want to be fair-weather friends in the year ahead. Some banks have shown themselves to be fair-weather friends.
“They’ve reduced commissions, promised to pass on the benefits of their profit margins and then not done so.”
But “brokers have long memories” and this will be reflected in whom they work with in the coming financial year, he says.
