CashDeck releases software to help brokers and borrowers prepare for tougher lending measures
There’s no doubting that the Hayne Royal Commission will bring about changes to the way borrowers, brokers and bankers behave. As lenders are required to more carefully scrutinise loan applications and living expenses, it is expected that home buyers borrowing power will be greatly reduced. A recent UBS report suggests that credit availability could be cut by 21 to 41%, depending on income.
While nobody can tell exactly what measures will come about, change is certain, and smart brokers will already be making changes to their business processes. Compliance will be top of the list, and for brokers this will mean more accurately assessing living expenses—an onerous task. Technology must come into play here, and can do so very early on in the conversation.
As borrowing becomes more challenging – and it will – brokers will have to work harder and engage with more clients to get the same results they are getting today. Technology has a part to play here as well—in marketing and maintaining engagement. While a client may not have borrowing power today, they may tomorrow. How can a broker keep in touch with clients so they are top of mind when that time comes, and make sure they’re financially ready when the times comes?
As the system tightens, borrowers will realise that they need to do the hard yards up front. They’ll need to tighten their belts, they’ll need to really understand their spending and they’ll need to save. The best kind of borrower is one who can demonstrate they can live with their mortgage – long before they have a mortgage.
In response, CashDeck have released products to help brokers and borrowers prepare. “We’ve developed a set of tools we call Credit Ready for brokers and their clients. For brokers, our software will retrieve bank statements and provide a very detailed living expense analysis which is exportable to Excel.” said Owen Joyce, CCO of CashDeck.
A typical analysis costs as little as $5, will save many hours for the broker and immediately let the borrower know where they stand. “We also offer a branded money management app that brokers can provide free to their clients to help them get their finances in order. It’s a great way to communicate and build a database of future clients in a new era of lending where doing nothing is no longer an option”.