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Fixed rate volatility could hurt brokers

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Australian Broker | 14 Mar 2013, 08:00 AM Agree 0
Volatility in fixed rates could end up having a negative impact on brokers who aren't careful, a bank has claimed
  • Country Broker | 14 Mar 2013, 10:11 AM Agree 0
    How about we talk about paying a lock in fee
  • moonae | 14 Mar 2013, 10:16 AM Agree 0
    Seriously. I've been in this game for 25 years and the Banks haven't changed. They scare punters as rates are rising into fixed rates and they scream we've hit bottom as they are dropping. mark my words. When Banks are talking about fixed rates potentially going up, they are not. Quite simple. A lesson for all you young Brokers out there, when the first Bank raises its fixed rates then we've hit bottom. Banks also talk about fixed rates like they are a commodity. Fixed rates are a risk mitigant not a price. Each client situation is different and Banks telling people to consider fixing gets my goat up. I'll advise my clients, Banks, you just provide a competitive product and stay out of the advice.
  • Broker - 15 Years | 14 Mar 2013, 11:10 AM Agree 0
    Volatility in Interest Rates is not an uncommon phenomenon and therefore it has always been a standard protocol for professional mortgage brokers to discuss, explain and offer the option of a "Fixed Rate Lock-In" with every borrower who is considering a Fixed Interest Rate.

    To not do so would likely be deemed "Negligent".
  • NQ Broker | 14 Mar 2013, 11:47 AM Agree 0
    When Citibank referrs to normality. Normality has gone out the window a long time ago with the banks moving on rates based on their own cost of funds and not that of the standard cash rate. I do like the idea of free rate lock however. More banks need to be in this space.
  • SteveL | 15 Mar 2013, 10:06 AM Agree 0
    Cards are stacked folks. Fixed rates are a scam, always have been. Don't think you can "Beat the Banks" because you can't. Fix because you want certainty in rates, not because you think your going to beat the Banks. Crikey!
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