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ISCOVER
Staff Reporter
The low fixed rates currently being offered by many of Australia’s lenders are presenting brokers with sound business opportunities, according to one wholesale funder.
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Brett Halliwell, general manager Advantedge distribution, said current fixed rate pricing offers brokers an ideal opportunity to proactively leverage their database, engage clients and write new business.
“Long term fixed rate pricing is excellent right now. We haven’t seen fixed rate opportunities this good in some time,” he said.
“This is great news for borrowers and even better news for brokers looking to connect with clients – both existing and new.”
According to Mr Halliwell, the wholesale swap rates that underpin fixed rate mortgages have recently turned in direction and have been heading up.
“A window of opportunity has opened for borrowers to lock in a fixed rate well under current variable rates,” Mr Halliwell said.
“Right now we are offering three year fixed rates from 5.44 per cent per annum under our home-brand product range ChoiceLend, FastLend and PLAN Lending – rates that are around 50 basis points less than the standard variable rates offered by the major banks.
“While we don’t know what variable rates will do over the coming period, borrowers that lock in fixed rates may secure themselves a rate that over time can prove more effective than a variable rate solution.”
According to Mr Halliwell, many borrowers make the mistake of fixing their rate when variable rates are already heading north, by which time they’ll have missed the boat.
“The time to lock in fixed rates is at the bottom of a downward cycle, not when variable rates have already started to rise,” he said.
