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Refinancing will continue to be the most active borrower segment in 2012, a new poll has revealed.
According to The Adviser’s latest straw poll, 50.8 per cent of brokers believe refinancing activity will dominate in 2012.
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Of the 297 respondents, one third of brokers said investors would provide the greatest business opportunities, while 9.1 per cent said upgraders/downgraders would dominate and 8.8 per cent believe first home buyers will be the most active segment.
wHeregroup's Todd Hunter is one broker that believes the refinancing sector will continue to be active in 2012.
"I think we will see an increase in investor and refi activity," he said.
"We have seen a bit of a correction in property prices of late. In addition, interest rates have come down and that always stimulates refinancing," he said.
Speaking to The Adviser, RESI’s chief executive Lisa Montgomery agreed that refinancers would continue to be active in 2012 and said brokers are in the ideal position to provide guidance to borrowers regarding their finances and potentially create a “client for life”.
“Refinancing will still be strong with so much emphasis on price at the moment when it comes to mortgage products,” she said.
“It is really concerning to me that consumers think that the best loan is the cheapest on the market. It also worries me that they are not getting the right guidance in regards to their entire financial platform. A lot of lenders are offering cheap rates which are attractive to consumers, but this doesn’t help them deal with all of their other debt, including personal loans, credit card and store cards.
“I think over time there will be a change. Right now there is a focus on rates but I think the focus will eventually swap to how lenders and brokers can actually help people reach their financial goals.
“I think there are some great opportunities for brokers to become professionals across the entire financial landscape. Brokers that can help meet all of a consumers financial needs will get a positive referral every time.”
