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Borrowers pay close attention to the RBA's rate cuts, but do they know the impact it has on their mortgages? This month we ask...will you use the rate cut as a chance to contact your clients?
MARY SARTINAS
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Affiliated Financial Solutions
“We will definitely be looking at the rate cut as an opportunity to touch base with our clients and review their existing commitments and loans. Most people know that interest rates have been reduced, but don’t know the direct impact that it has on them and their home loan. We sent out a newsletter in early January as our first point of contact about the rate cut, and then we’ll be giving our customers a call to discuss their options. We certainly take a proactive approach to contacting customers.”
JO ATTARD
Jo Attard & Co
“It is always great to contact clients with good news such as interest rate cuts and the potential for more money in their pockets. With the last interest rate cut, our clients were contacted. We also highlighted the option of fixing all or part of their loans to take advantage of some of the special offers in the market place. I am finding that since the abolishment of DEF’s and the interest rate cuts, borrowers are becoming more savvy about their lending options.”
ROSS LE QUESNE
Aussie
“I think it’s better for clients to keep their repayments the same because that will save them interest in the long run, will enable them to pay off their loan faster and will help build their equity. Rate cuts are good for investors because it improves their cash flow, but with owner-occupied loans, most people have been budgeting to pay the amount as is and most are confident and comfortable paying that. When actually given the option 80 to 90 per cent of people keep their repayments the same.”
TROY PHILLIPS
FirstPoint NB
“Good brokers will put their clients in the right loan the first time. If a broker has 10 clients and they go back to them time and time again when rates change or lenders alter their pricing or policy, then those brokers are not going to grow their business. I would even say that their business model is not very sustainable. The majority of borrowers have a loan with the big four, so regardless of what happens to rates, borrowers are not going to get a significantly better deal from another lender.”
DAVID BRELL
Smartmove
“If we contacted every single customer every time there’s a rate cut, our business would be dead. Our customers are pretty savvy – they’re on the ball. When a client takes out a loan with us, we explain the market to people, we educate them about how it works. If we educate our customers properly about their mortgages and the rate cuts, and put them on the right mortgage in the first place, then they’re well educated and know what’s going on. If you have a mortgage, you like to know how it works.”
