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Brokers urged to be proactive during interest rate hold

Finance Brokers Association of Australia (FBAA) | October 19, 2017

Now is the time for brokers to be proactive with predictions by many financial experts that the official interest rate is unlikely to change in the near future, according to the Finance Brokers Association of Australia (FBAA).


Executive director Peter White said borrowers need to be assured their loans have not become unsuitable for their needs.


“One of the best things people can do is ensure the interest rate structure on their loan is suitable for their future and that’s where brokers can help,” he said.


Mr White said brokers can advise borrowers to consider their short to medium term plans in order to judge whether a fixed or variable rate loan is preferable.


“If they have no immediate plans to change their borrowing needs for renovations, extensions or the like for the next two to three years, fixing their interest rate for that period may be a good option with many fixed rates sitting at below four per cent.


“On the other hand, a part-fixed part-variable rate loan structure may be a good option if people want to hedge their bets on all fronts.


“The key is to wait for the best time to do it and that may be another six to ten months down the track.”


Mr White suggested that with all the uncertainties in the home loan marketplace, brokers are the best placed finance industry professionals to guide borrowers through the interest rate mire.

About Me

Finance Brokers Association of Australia (FBAA)

Finance Broker
FBAA
www.fbaa.com.au
Woolloongabba, Queensland
07 38478119
The Finance Brokers Association of Australia (FBAA) is a national association representing finance and mortgage loan writers throughout Australia. It was formed in the belief that the establishment of measurable standards of proper professional practice in sourcing domestic and commercial funding was in the best interests of its customers/consumers and vital to the integrity and future wellbeing of the finance/mortgage broking industry. In the interests of members and their clients, the FBAA performs the following functions:
▪ Monitors legislation: and makes representations to Ministers and Members of Parliament both state and federal as appropriate.
▪ Code of Practice: adopted by industry professionals who offer domestic finance, commercial finance, lease and motor vehicle finance, business and debtor finance, as finance/mortgage brokers.
▪ Associated with training organisations: to provide programs to the industry and keep members up-to-date with changes to government legislation and regulations.
▪ Complaints and disciplinary procedures: designed to eliminate unacceptable working practices amongst its members, by providing an Internal Disputes Resolution Process (designed to meet Australian Standards). It also is a safeguard to both its Members and their clients/consumers against restrictive practices within the industry.