Brokers to be "directly" impacted by COVID-19

Association head says brokers should expect to be affected on multiple fronts in the coming months

Brokers to be "directly" impacted by COVID-19


By Madison Utley

The head of an association has warned that brokers should expect the current coronavirus pandemic to “affect them directly on multiple fronts”.

FBAA managing director Peter White AM said that while the current situation may be unprecented in some regards, it’s not difficult to predict many of the effects given the recessions and other major issues he’s witnessed in his 41 years in the industry.

“Firstly, every broker must have the technology and knowledge to be able to transition to an online model,” he said.

“With Skype, Zoom, FaceTime, Facebook Messenger and numerous other platforms available, this is easy and inexpensive.

“Brokers who are not prepared to go online will be impacted financially, as less consumers will seek face to face meetings in the current environment.”

White has predicted a surge in customers seeking out brokers in the wake of job losses and business closures as the economy plummets, and has encouraged brokers to do research beforehand to be able to handle the influx.

“We must be ready to guide our clients to lenders who can help them in their time of financial hardship; therefore, it is vital we know what each lender is offering in terms of support,” he said.

“Due to the financial, social and emotional value of the family home and small businesses, our industry is on the front line of any economic shift.”

The customer boom will swell yet further as both new borrowers and those wanting to change lenders surface as interest rates fall to record lows, housing prices drop and lenders compete for business.

“New home buyers and investors will emerge to take advantage of a weaker market, and we must be able to deal with this at the same time,” said White.

“Most brokers will need this new business for their own viability.”

“All brokers should be ready now for what this crisis will bring in the coming weeks, months and even years.”

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