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Jessica Darnbrough
Credit growth should rebound over the coming 12 to 18 months, Liberty Network Services’ Brendan O’Donnell has claimed.
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Speaking to The Adviser at the recent MFAA conference in Sydney, the managing director said lower interest rates should encourage buyers back into the market, which will bode well for brokers and credit growth.
“I don’t know if anyone predicted the latest rate cut, but it is an encouraging sign from the RBA. I think the lower interest rate market will encourage buyers, particularly investors, back into the market,” he said.
“All the preliminary statistics show the property market is starting to bounce back and I believe this will continue over the next 12 to 18 months.
“There is still some nervousness from borrowers, especially with regards to what is happening overseas, but I think we should only focus on what we can control and not what we can’t.
“I believe the lower interest rate market will rejuvenate the property market and, as such, we will see an increase in credit growth over the coming 12 to 18 months."
Mr O’Donnell said any increase in credit growth and buyer interest will bode well for brokers and broker market share.
“I have been saying for some time that brokers can grow their market share to 50 per cent. I don’t know how quickly that will happen, but I do believe it will happen,” he said.
