Staying on top of economic trends can feel like trying to surf a wave that just won’t quit, one minute you’re cruising, the next you’re scrambling for balance. But for brokers, being ahead of the curve isn’t just a nice-to-have, it’s how you might help your clients thrive, even when the market gets a bit choppy. Financial commentator Michael Pascoe recently shared some big insights on what’s shaping the Aussie housing and finance game right now, and there are plenty of takeaways that could help you stay on the front foot.

Tackle the housing supply crunch with some outside-the-box thinking

The housing supply shortage is like a leaking tap that just won’t stop dripping, and the numbers aren’t making it any easier to fix. Australia’s set to build just over 900,000 new homes in the next five years, well short of the 1.2 million target under the National Housing Accord. That gap? It’s already putting the squeeze on renters and first-home buyers, with many lower-income households forking out more than 50% of their income on rent.

Here’s where you might be able to step in and shine. There’s a real opportunity to help clients potentially tackle these affordability challenges head-on. Think shared equity schemes, low-deposit products, or finding ways to tap into underused housing markets. By offering tailored solutions, you might help clients stay afloat and potentially set yourself apart in a market that’s getting tougher by the day.

Keep an eye on monetary policy shifts

Interest rates have become the financial world’s version of a rollercoaster, just when you think you’ve hit the peak, there’s another twist. The Reserve Bank of Australia (RBA) is balancing inflation control with economic growth, and with the trimmed mean inflation rate remaining at 3.5%, there’s some hesitation about making big moves on rates.

On top of that, mortgage payments now chew through 10.2% of household income on average. As a broker, this is where you might be able to offer real value. Helping clients understand how fixed versus variable rates could play out for them, or explaining how rate changes might shift their borrowing power, may provide relief during uncertain times.

And it’s not just about what’s happening on home soil, keeping tabs on global trends like U.S. monetary policy may give your clients that extra edge they didn’t even know they needed.

Diversify your offerings to build a stronger business

With all the pressure on the residential housing market, diversifying your services isn’t just smart, it could be a way to stay competitive. Commercial lending, Self-Managed Super Fund (SMSF) lending, or alternative financing models might open new revenue streams and help meet your clients’ evolving needs.

Take commercial lending, it’s a solid way to support business clients looking for property investments, equipment loans, or even working capital. SMSF lending is another growing space that might be worth exploring. It’s a niche market, sure, but one that could be full of potential for brokers who are ready to dive in and offer guidance. And don’t overlook alternative finance options like private lending or peer-to-peer platforms, they might be a lifeline for clients who don’t tick all the traditional boxes.

Use technology to strengthen client connections

Technology isn’t just for the big players anymore. It’s a must-have if you want to streamline your operations and stay connected with clients. Tools that automate admin tasks, offer real-time loan tracking, or help manage client relationships could help to free up your time so you can focus on what matters: building relationships and offering personalised advice.

One handy tool is the SMART Red Alert model, it predicts when clients might discharge their loans and why. This means you might jump in early with tailored advice or support, helping clients feel informed and valued. And when clients feel supported, they’re more likely to stick around, and might even recommend your services to others.
What’s next?

Sure, the current economic landscape has its challenges, but let’s flip the script, there are many opportunities for brokers who are ready to adapt and innovate. By offering solutions to housing affordability issues, staying sharp on monetary policy shifts, diversifying your services, and embracing technology, you might position yourself as the go-to advisor in this ever-changing market.
At the end of the day, it’s about being resilient and evolving with the times.

Any information provided above about a particular situation, or an individual experience, is not an indication of future performance and no representation or warranty is made that the information contained above is appropriate for any particular circumstance or indicates that a particular course of action should be followed.

Please note we do not provide financial product, tax, legal or accounting advice. Any information provided is of a general nature and/or for illustrative purposes only. It does not take into account the objectives, financial situation or needs of any particular person or company. We suggest you consult with your own tax, legal and accounting advisors before engaging in any transaction.