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Whether or not the RBA decides to cut the official cash rate at today’s meeting will have a direct impact on broker business - and many in the industry will be ready to man the phones as soon as the decision is announced.
1st Street Home Loans director, Jeremy Fisher, says in a market environment that continues to change, he needs to be consistantly prepared for any new developments.
“Our brokers are ready to field calls from clients asking for loan assessments and we have been in communication with lending managers around their current timeframes to prepare for potential loan adjustments if the rate is lowered.”
Fisher says he doesn’t expect the RBA to change the cash rate this month, but says the decision will nevertheless have an effect on his business.
#pb# “If it is decided that rates are to be reduced there will be potential opportunities for clients to refinance and take advantage of a lower rate on their loans. Mortgage brokers may contact particular clients in these circumstances or the clients may contact their broker for a loan evaluation.”
Should the cash rate be lowered further, Fisher says he thinks some lenders will be prepared to follow suit.
“If there is a cash rate cut, some lenders will take the opportunity to pass on a full reduction in their rate to attract new customers but, as is often the case, the banks have a very structured approach to setting their rate and the cash rate is just one aspect in their equation.”
