With 2022 behind us it’s time to look forward to see what 2023 could have in store. This way, we can assist you to best prepare for what’s to come!
Top 3 brokers predictions for 2023
As reported in TheAdviser on 3 Jan 2023, here are 3 trends that brokers expect to see in 2023:
- REFINANCING DEMAND TO CONTINUE
- Many clients locked in ultra-low fixed rates at the beginning of the pandemic. As their fixed rate period comes to an end they’re looking for the best options in the current market.
- With the cash rate on the rise we’re also encouraging clients with a variable rate to check that they are getting the best deal.
- BUDGET FOR HIGHER RATES
- With RBA cash rate increases set to continue clients are being encouraged to tighten their purse strings. Imagine that the rate on your home loan is actually 1-2 per cent higher than it actually is and set repayments at this level. This way you’re building up a redraw to fall back on if you need it.
- “By the end of 2023, hopefully, inflation will be sorting itself out and interest rates will stabilise” Louisa Sanghera, Zippy Financial
- CHANGING HOUSING NEEDS
- With many people continuing to work from home and the desire for smart homes with space to charge electric cars will make 2023 an interesting one to watch. “People are also more aware of what they want and are savvier than before” Rebecca Jarrett-Dalton, Two Red Shoes
6 predictions for 2023 from the non-major banks
As reported in TheAdviser on 3 Jan 2023, here are 6 trends that non-major banks expect to see in 2023:
- DAMPENED BUYER ACTIVITY
- It’s likely that rising interest rates will continue to impact borrowing capacity in 2023, potentially dampening buyer activity. Raj Kapoor, Head of broker distribution, Adelaide Bank
- A MORTGAGE BATTLEFIELD FOR LENDERS
- “We expect that next year will become a mortgage battlefield for lenders. Low LVR lending will become an extremely competitive market as lenders price their home loans to retain customers or try and gain market share” Damien Hearne, Chief customer officer, Auswide Bank
- AGGRESSIVE COMPETITION
- With many people looking to refinance from their existing lenders “non-major banks provide a genuine alternative to the major banks as we offer competitive financial products and personalised customer service” Paul Moses, Head of broker experience, Heritage Bank
- STRONG REFINANCING AND DIGITISATION
- “Refinancing will likely continue to remain strong as consumers seek to reduce the impact of the continued rate rises on their household expenditure”
- “In 2023, we’re likely to see improvements in digital home loan journeys, with simplified credit policies and technology playing their part to make the home loan origination process smoother” Glenn Gibson, Head of customer experience, service & distribution, ING
- THE NEED FOR TRUSTED ADVICE
- “Uncertainty around inflation, cash rate, unemployment and house prices will continue. Borrowers nervousness and need for trusted advice (mortgage brokers) will be more prevalent”
- “Meanwhile astute borrowers, especially investors, can capitalise on strong rental returns due to high demand and little supply” Blake Albones, Head of lending distribution (retail, broker & digital), MyState Bank
- EVOLVING TECHNOLOGY
- “Digital processes will be key in helping brokers identify opportunities for their customers as well as ensuring that customers have a streamlined process when securing their desired home or business loan” Troy Fedder, Head of broker partnerships, Suncorp Bank
If these predictions have prompted you to take actions to improve your personal or business finances in 2023 – you are not alone! We are ready to help you. Contact us or ph.1300 005 409 to get started.