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Steven Cross
Brokers who want to drive their businesses forward, should concentrate on servicing refinancers, new research has found.
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The Adviser’s latest sentiment survey found refinancing would be the dominant market segment over the coming six months, according to brokers.
Of the 200-plus broker respondents, more than 55 per cent said they expect a majority of their business to come from refinancing.
This sentiment comes hot on the heels of data from the Australian Bureau of Statistics, which found 17,756 home loans were refinanced in the month of March – the highest number since the depths of the GFC.
Broker sentiment is reinforced by a Loan Market Group poll conducted last week across borrowers, finding that the latest cut to the cash rate will prompt refinancers to survey their options.
Of the 700-plus respondents, 88 per cent said they would look to buy again within the next 12 months – a positive sign for brokers.
Rate Detective’s Warren Dworcan said these results were largely unsurprising given the recent spate of rate reductions.
“People are looking at their options to see if there is something better. Rates are falling and borrowers are interested once again,” he told The Adviser.
“I would say refinancing makes up the biggest part of my business at the moment, people are trying to find ways to save money.”
Mr Dworcan said there is no better time for refinancers given that rates are falling and the government has banned exit fees on all variable rate products.
