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Jessica Darnbrough
Refinancing will continue to provide brokers with the greatest business opportunities.
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Speaking to The Adviser, RP Data’s head of research Tim Lawless said as the threat of rising interest rates escalates, brokers will see more of their clients look to refinance into a cheaper mortgage.
“There is going to be quite a lot of consumers out there looking to minimise their loan repayments due to interest rates being higher than what they had previously been,” Mr Lawless said.
“Also, brokers will be pleased to note that the number of refinances haven’t fallen away anywhere near the number of property transactions. Hence, there is scope for them to focus on the best rates, loan opportunities and the best refinance opportunities over the coming months.”
Refinancing aside, Mr Lawless said the other key market brokers should be targeting is investors.
“Based on housing finance commitments, we have seen investor values trending downwards. However, they are not as low as they were in 2008 and I see yields in renter markets improving quite considerably, which is likely to provide a further encouragement for investors looking to strategically position themselves in the market.”
