Prolink Finance Solutions’ Muzi Dandachli will be postponing holidays until late January or early February to cope with demand which is having his business colleagues ‘chasing their tails’.
Following the 0.25% RBA rate cut on Tuesday, which ANZ, ING Direct and Bankwest among others have since passed on, Dandachli said Prolink Finance Solutions is getting a “ridiculous” amount of business through the door, particularly in the low end of the market.
Based in North Ryde and servicing clients across Sydney, he said he expects the lead up to Christmas will be a continuation of the current level of demand, especially from first homebuyers looking to take advantage of a stamp duty exemption in NSW before 31 December.
Once the deadline passes Dandachli said he expects investors to “bombard” the market as they seek to benefit from an expected easing in slightly elevated pricing prior to the stamp duty deadline.
However, with further rate cuts already priced into the market, 'mum and dad' clients may remain active early next year, with Dandachli expecting a 5% capital gain over the next quarter.
Commenting on the rate cut, Dandachli said he expects the big four banks might wait a week or two to maximise their financial benefit before passing on the cut, and would do so before Christmas.
He said any further rate cuts by the RBA will serve to boost sales in properties worth $700K and less.
Dandachli added that he was looking to recruit talented loan writers for the business in the near future, but that the market was a difficult one for businesses hungry for talented brokers.