The Reserve Bank might have been left with little choice but to start increasing the cash rate. But with many banks increasing their home loan rates in response, it’s becoming much harder for some borrowers to qualify for a mortgage.

That’s not great news for all the mortgage brokers out there, especially if residential home loans are your bread-and-butter.

To add fuel to the fire, the cost of living is increasing rapidly, with inflation jumping 2.1% over the March quarter.

Unfortunately, those extra expenses will affect your clients’ borrowing capacity.

At the same time, the property market is slowing in many parts of the country, as confirmed by the latest CoreLogic data. Some economists, including those at the Reserve Bank, believe prices could fall up to 15% over the next two years.

That will make it harder for some homeowners to refinance, due to their weaker equity position – which is terrible timing, as more than $100 billion of fixed-rate home loans are due to expire over the next 18 months, according to Canstar.

Unfortunately, that means you, as a broker, might miss out on refinancing opportunities.

Unless, that is, you have access to flexible, non-bank finance solutions.

Non-bank finance is the ace up your sleeve.

As mainstream banks put the squeeze on lending, it’s becoming more important for brokers to look for alternatives.

After all, there’s going to be a lot more demand from Australians who don’t meet the banks’ strict eligibility criteria. So you need to have a solution up your sleeve when a more tricky deal comes across your desk.

One fantastic option is Credit Connect Group’s mortgage investment services.

We offer lending opportunities from $50,000 to $80 million, secured against Australian real estate, with a maximum LVR of 65% (although, on occasion, we can go higher). The loans are:

• Fixed-rate, interest-only
• Funded for a maximum term of three years
• Transparent from the start, with no hidden fees

Unlike the banks, we understand no two loans are the same. So we assess your clients’ applications based on merit, not some arbitrary list of tick-box requirements. As a result, we’re incredibly flexible, with:

• Fixed-rate, interest-only
• Personalised loans and interest rates
• Fast settlements

Property finance moves in cycles. Right now, we’re going through a tightening phase. When that happens, it becomes harder for brokers to get deals over the line using traditional methods. That’s why it’s important to have a flexible non-bank lender on your panel.

Banks are going to start saying ‘no’ a lot more often. But at Credit Connect Group, we love saying ‘yes’ to our broker partners.

Don’t want to get caught out by this tighter lending environment? Credit Connect Group can help you – and your clients. Submit your loan scenario below or get in touch by calling 1300 795 507 or emailing info@ccg.com.au

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