As I suggested back in June, rate reductions are starting to flow through to new borrower deals.
This is good news for my own existing clients because I review;
- Every loan
- Every Client
- Every 6 months
- And where a reduction is possible seek that on your behalf
You will start to see these reductions flowing through to your loan in your next review.
As you know, I seek written agreements with any bank that wants my new business. Namely that they agree to price my existing business in keeping with new offers whenever I make a request.
I know that this sets me apart in the industry.
What surprises me is that such a simple concept of rewarding loyalty with price is so difficult to achieve, and that banks and most brokers don’t pursue the same principle.
That banks are bereft of ethics and so morally diminished is no longer surprising. Banking culture sees that giving a loyal customer “just enough so they won’t leave” is normal. Dragged kicking and screaming to fairness is their method. They see retention as a commercial exercise.
I see retention as something that should be earned. To retain your business is a privilege – not a right.
I have such a written agreement with one lender and two others where I have full BDM support for the principle – it is a start in the right direction.
To obtain the cheapest loan requires two important contributors;
- A well-priced starting point
- A commitment to maintaining that pricing relativity over the life of the loan
For a bank to receive my recommendation, they must agree to accepting a new way to treat people.
On market conditions, some surprises are coming through.
There is a huge group of people for whom Covid-19 has;
- Not lowered income
- Has lowered their costs (with travel severely curtailed)
This is showing up in;
- Substantial increases in purchases of luxury cars
- And increases in property purchases in desirable suburbs
There will be places where house price will fall though;
- Suburbs where unemployment will rise as Jobkeeper winds down
- Suburbs highly dependent on immigration eg. student accommodation
Interest rates that are currently low, and heading lower still from competition for new business, will support property price.
In conclusion – thank you for allowing me to look after you and your borrowings – it is a privilege that I do not take for granted.
If you ever have opportunity to tell your friends and colleagues that you know a broker who is unique in his approach to obtaining value for his clients, I would greatly appreciate that.
As always if you would like advice specific to your own personal circumstances, please call or email anytime, it’s what I’m here for.