With record low interest rates and cashback offers galore, the turnaround times across larger Australian banks have stretched to weeks, if not months; as such, Jason Fallscheer, client director and credit representative at Pitcher Partners Finance, has encouraged brokers to be targeted and direct in helping their customers factor this prolonged timeline into their overall decision making.
“When the deal is approved and refinancing is complete, some clients can’t access the discounts that drew them to a particular bank in the first place,” he explained.
“In the case of clients refinancing to take advantage of a bank’s current offers and low interest rates, brokers need to help them weigh up whether it’s worth waiting for an application to be processed, rather than exploring other options.”
According to Fallscheer, it has never been so important for brokers to help their clients assess the full range of options available, calculate the cost of processing delays to help quantify the consideration and help borrowers determine their guiding priorities in choosing a lender – and where they’re willing to be more flexible.
“For example, some banks still require face-to-face appointments to set up accounts. Income verification is also more intense than ever before. While income verification for PAYG salaries may be more straightforward, people with other types of income, such as bonuses, may face more rigorous income verification,” Fallscheer said.
“As a broker, you can help your clients explore different funders and make sure their application is strong the first time.”
Additionally, the director has encouraged brokers to make sure they’re maintaining regular contact with their customers.
“If you’ve been lax in checking in with your clients, now is the time to contact them,” he said.
“If a client isn’t getting the best rate, work with them to explore other options with their current bank and benchmark against the market.
“If a borrower can’t change their home loan right now, think about how you can help them in other ways. [Even if they] may not be immediate business prospects, demonstrating care now will mean you’re top of mind when their financial situation changes,” said Fallscheer.
For more on this story, check out Issue 17.13 of Australian Broker
