Brokers have responsibility in light of rate wars: White

by Julia Corderoy07 Aug 2014
As the interest rate war has thrown home loans into the spotlight encouraging Aussie home buyers to take advantage of the low rate market, the FBAA is urging brokers to use this time to review clients’ needs.

FBAA chief executive Peter White is concerned that the hype surrounding interest rates may cause consumers to get ahead of themselves, and jump into a home loan they are not ready for or one that isn’t right for them.

“This is an opportunity for brokers to be proactive and serve their clients by giving them the right advice at a time when wrong decisions can be made.
“Our message should be that while many of these rates are great, mortgage holders are advised to consider their individual circumstances before fixing for a longer term,” White said.

It is a broker’s responsibility to make sure that clients are aware of all their options so they can make informed decisions, White said.

“Many consumers don’t understand the NCCP, but we do. We have a responsibility to our clients to do a needs analysis and recommend the best options.
“If they are considering having a family, moving house, changing jobs or retiring, we can discuss how these decisions will impact a fixed rate loan.” White said.