What are your clients up to this year? One broker has seen 70% of his new clients come from the same lucrative growth market.
What are the issues that are affecting your clients this year? Are high LVR loans on the agenda? Are they struggling to build up a deposit? Are they looking to build or upgrade? MPA spoke to a number of brokers to discover the trends that they’re seeing within their businesses.
For Rod Holt, who runs a Mortgage Gallery franchise in Dunsborough, WA, there’s one sector of the market that has dominated when it comes to bringing in new clients.
“First home buyers purchasing vacant land and building a high-end new home was about 70% of last year’s new business,” he explains. “As the cost of construction continues to increase, so does the size of the loan that these clients require. Thus factors external to my business in my region are driving business growth both in terms of numbers and value of loan.”
What’s driving this trend? Holt believes that it can be explained in part by the attitude to home buying that young clients in his region have adopted.
“Young clients want the best now and believe their first home should have everything, which is very different to the opportunities our generation had,” he says.
For Mortgage Choice Cheltenham’s Anthony Smith, there’s one sector of the market that’s taking off.
“Investors are back in the market in a big way. At present, a large portion of my business comes from investor clients,” he says. But he concedes that there are other market sectors that aren’t performing so well in his area.
“On the flip side, we have seen a drop off in first home buyers,” he says.
This isn’t a problem faced by Matt Cunliffe from Mortgage Choice Brisbane. In his area he’s finding that the market conditions are encouraging new buyers to take the plunge.
“We are starting to see a lot more first home buyers, and buyers that sold and are renting, coming into the market,” he says. “With interest rates at historical lows and repayments being very similar to rent figures here in Queensland it is providing a lot of confidence to buyers to get out into the market.”
Down in Sydney’s Eastern Suburbs, Alex Lambros from the area’s LJ Hooker Home Loans franchise has noticed that the upgrader market that's seeing some action.
“Property is on the move, and people must generally feel more secure in their income levels,” he says. “Many people are looking to upgrade their properties right now.”
Meanwhile, for Loan Market Manningham’s Daniel Esposito, it’s business as usual.
“It’s pretty steady this year – a mix of investors and upgraders, and people reviewing their rates or consolidating,” he says. “If they’ve been with their lender for three or four years, I’m finding they are re-evaluating their rates.”
For more insights from the teams behind year's Top 10 Franchise Brokerages, pick up MPA issue 14.4. On desks now.
What trends are you noticing in your area? Join the conversation below.
For Rod Holt, who runs a Mortgage Gallery franchise in Dunsborough, WA, there’s one sector of the market that has dominated when it comes to bringing in new clients.
“First home buyers purchasing vacant land and building a high-end new home was about 70% of last year’s new business,” he explains. “As the cost of construction continues to increase, so does the size of the loan that these clients require. Thus factors external to my business in my region are driving business growth both in terms of numbers and value of loan.”
What’s driving this trend? Holt believes that it can be explained in part by the attitude to home buying that young clients in his region have adopted.
“Young clients want the best now and believe their first home should have everything, which is very different to the opportunities our generation had,” he says.
For Mortgage Choice Cheltenham’s Anthony Smith, there’s one sector of the market that’s taking off.
“Investors are back in the market in a big way. At present, a large portion of my business comes from investor clients,” he says. But he concedes that there are other market sectors that aren’t performing so well in his area.
“On the flip side, we have seen a drop off in first home buyers,” he says.
This isn’t a problem faced by Matt Cunliffe from Mortgage Choice Brisbane. In his area he’s finding that the market conditions are encouraging new buyers to take the plunge.
“We are starting to see a lot more first home buyers, and buyers that sold and are renting, coming into the market,” he says. “With interest rates at historical lows and repayments being very similar to rent figures here in Queensland it is providing a lot of confidence to buyers to get out into the market.”
Down in Sydney’s Eastern Suburbs, Alex Lambros from the area’s LJ Hooker Home Loans franchise has noticed that the upgrader market that's seeing some action.
“Property is on the move, and people must generally feel more secure in their income levels,” he says. “Many people are looking to upgrade their properties right now.”
Meanwhile, for Loan Market Manningham’s Daniel Esposito, it’s business as usual.
“It’s pretty steady this year – a mix of investors and upgraders, and people reviewing their rates or consolidating,” he says. “If they’ve been with their lender for three or four years, I’m finding they are re-evaluating their rates.”
For more insights from the teams behind year's Top 10 Franchise Brokerages, pick up MPA issue 14.4. On desks now.
What trends are you noticing in your area? Join the conversation below.
