Finance and mortgage brokers must assume the current Coronavirus pandemic will affect them directly on multiple fronts, according to the Finance Brokers Association of Australia (FBAA).

Managing Director Peter White AM said in over 41 years in the industry he’s seen many recessions and major issues including the GFC, and while the current situation is unprecedented in terms of scale, it’s not difficult to predict many of the effects.

“Firstly, every broker must have the technology and knowledge to be able to transition to an online model, and with Skype, Zoom, Face-Time, FB Messenger and numerous other platforms available, this is easy and inexpensive,” he said.

“Brokers who are not prepared to go online will be impacted financially, as less consumers will seek face to face meetings in the current environment.”

Mr White said brokers must expect an inundation of clients struggling as the economy plummets in the wake of job losses and business closures.

“We must be ready to guide our clients to lenders who can help them in their time of financial hardship, therefore it is vital we know what each lender is offering in terms of support.”

However he said that the flip side is an increase in new borrowers and those wanting to change lenders as interest rates fall to record lows, housing prices drop and lenders compete for business.

“New home buyers and investors will emerge to take advantage of a weaker market, and we must be able to deal with this at the same time. Most brokers will need this new business for their own viability.”

He also pointed out that brokers will be dealing with the higher volume of client and consumer needs against a backdrop of concern for their own health and wellbeing.

“Due to the financial, social and emotional value of in particular the family home and small businesses, our industry is on the front line of any economic shift.

“The FBAA will continue to offer professional and personal support to members, and all brokers should be ready now for what this crisis will bring in the coming weeks, months and even years.”