If you’re considering mortgage broker training, you might wonder about what sort of home buyers you’ll be working with. After all, owner-occupiers and investors would both require different types of home loans and have different needs that will need to be met.
In the last year or so, investors have been a constant source of business for mortgage brokers. In the Australian Housing Outlook 2015-2018 report by QBE, Chief Executive Officer Phil White said that investors were in fact the most active group of buyers in the market, and made up half of all residential finance from 2014 to 2015.
Investors on the move
People looking to generate wealth through property have been relentless in their pursuit, particularly in certain capital cities. Fierce competition between these investors have left many people with dreams to own their own home in the dust as property values rose rapidly. According to CoreLogic RP Data’s monthly indices, Sydney and Melbourne’s house values jumped by 16.16 and 13.94 per cent respectively in the year to October.
Businesses in the financial services industry certainly has been good with the demand for home loans soaring, many of which were going toward an investment property. However, if you’re in the process of learning how to become a mortgage broker or are currently in the business, you could be seeing more and more owner-occupiers seeking out your services.
The return of the owner-occupier
The repercussions of such a booming market is that it’s been increasingly difficult for people without the financial capacity of an investor to afford a home.
The repercussions of such a booming market is that it’s been increasingly difficult for people without the financial capacity of an investor to afford a home. The Housing Industry Association (HIA) reported that the Affordability Index fell by 4 per cent over the September quarter, highlighting this.
With this in mind, the Australian Prudential Regulation Authority has been coming down hard on banks to restrict their lending towards investors. This had helped to cool price growth as buyers face less competition in the market from this group of buyers. The Australian Bureau of Statistics reported that in September, investment housing commitments dropped by 8.5 per cent in seasonally-adjusted terms. Conversely, owner-occupied commitments rose by 3 per cent.
These home buyers will need the right financing solutions tailored to their financial ability and their needs. With the right mortgage broker mentoring, you’ll have to skill and knowledge to make their home ownership dreams come true.