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While the residential property market is not expected to boom any time soon there are still plenty of opportunities for brokers, November figures have revealed.
The latest data from AFG found more than $2.9 billion of mortgages were processed in November, suggesting there are still plenty of people looking to buy, upgrade, downgrade and refinance.
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Consecutive rate cuts in November and December are also likely to further fuel refinancing activity and lower mortgage rates will make property investment more attractive as vacancy rates and yields remain attractive – and further rate cuts are forecast in the New Year.
While the combined 50 basis points cut will take time to have an impact on borrowers, brokers have a strong proposition to engage new and existing clients in the New Year.
Speaking to The Adviser, Citibank's head of mortgages – strategy, marketing and product Belen Lopez Denis said with NCCP now firmly embedded in the third party space, savvy brokers will use 2012 to capitalise on the opportunities that are present in the market and focus on marketing their business to new and existing clients.
"NCCP created a lot of extra work for brokers. They were forced to invest a lot of time and money in understanding and dealing with the new legislative requirements," she said.
"Now they have done that, I think there is great scope for brokers to go back to focusing on their business. In 2012, it will all be about segmentation. Brokers should target certain borrowers depending on their own strengths."
Ms Lopez Denis said brokers should really think about the types of clients they want to appeal to.
"Brokers are well placed to provide more tailored proposition. They need to think about segmentation. Concentrate on one borrower segment and find out where they are located and how this market can be tapped."
