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Do you think that the latest increase in the Banks standard variable rates (so far CBA, ANZ & NAB have moved and the others wont be far behind) will adversely affect the Broker community?

Cath,

I dont think it will affect the industry to a huge degree, in fact it may highlight the use of mortgage brokers to gain needed confidence so they can assist the Australian consumer in genuinely finding them a better deal on their home loan.

Hi,

I would agree with David as well...

In the US, brokers source about 80%+ of business for the lenders and in australia it only about 30% if that...

so there is a lot of growth for brokers in australia...

but that key point david mentioned was superior service! i find we are doing a lot of refinances at the moment and only a few new purchases due to the market being touch and go but i feel confident that it will rebound stronger than before.

And i will always have work.

ta

Dave

i think it will help continue the slide towards recession, it helps deepen consumer feeling, although the populations mindset hasnt caught on yet on whats happening within the global finance market. Id suggest having a read of Glenn Stevens statement a couple of weeks ago.

Banks are trying to avoid having to write down their assets for as long as they can avoid it. But the longer they wait, the worse it is, because the mortgage-backed assets keep falling as time goes on.

I predict, a full-scale panic when banks finally are forced to mark these assets down. Because the market will be loaded down with these securities from all sorts of financial institutions, they really will be almost worthless.


to provide context, as I've said to my staff and many of my investors, the stock market panic of 1929 was caused when investors, who had purchased stocks on credit (margin), were forced to sell their good stocks to meet margin calls on their bad stocks. That forced selling caused share prices to fall even further, resulting in more margin calls to investors, resulting in more forced selling, until there was a full-scale panic.

We are seeing investors clambering for funds from mortgages, by redemptions or short selling stocks.

Its quite amazing and its only just started!!