Good Afternoon!
I had to let a client go this week…
I have spent the last few months with them, assisting with their credit reports, giving them some guidance on how to move forward as there were some issues. On Monday they came back to me, in a mad rush, wanting a pre-approval to attend auction on the following weekend, I urged caution as this was going to be difficult but made an appointment for Thursday night.. They then went to another broker in the days after their call to me, because I couldn’t see them right then and there. When we did meet they wanted to know why what I had said to them wasn’t the same as the other broker, they had been told that they could get things done much faster, that they could borrow more and buy a more expensive home. I politely as I could told them I couldn’t help them, I wasn’t going to get into a war with them over what they had been told. The simple fact is that they didn’t have the borrowing capacity, they didn’t have enough deposit and sadly I think they will be disappointed by the outcome from the other broker.
My clients need to know that I wont lie, I won’t always tell them what they want to hear, because that is not how I do business. Sometimes its hard to not argue with what someone has been told something, even when I know its not right. Especially when the client has already made their mind up about what they think is true.
This is especially important in the current climate, lending is fraught with issues right now, difficulty in getting things done, let alone in record time especially with a pre-approval that sits at the bottom of EVERY lenders list.
On a note that the newspapers have been ringing for the last week. The King is dead, long live the King!
No but really, those poor Americans, they are in for a torrid time internally if DJT doesn’t admit defeat, as is the stock market!
Our Big news came in the form of a rate cut! A Melbourne Cup rate cut nonetheless AND banks have already started slashing their fixed rates, not many yet moving their variable rates. We now have mainstream lenders offering below 2% fixed rates with CBA backing a 1.99% 4 year fixed on their wealth/MAV package, St George with a huge 1.89% 4 year fixed as long as you are below 60% LVR.
This kind of headline grabber really is typical of a rate not being available to everyone. I have already found that clients are confused as to what is actually available. It’s been nearly impossible to get calls back from the bank as they are absolutely getting inundated with existing clients wanting to know what can be done. If it was hard to get a bank to action anything before, well now its just that little bit tougher.
What it does mean is that if you were thinking about giving your loan a health check now is certainly the time.
Have a smashing week out there!
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
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