Finance and mortgage brokers have been warned to expect an inundation of struggling and distressed clients as the economy plummets in the wake of job losses and business closures.

In a notice to its national membership, the Finance Brokers Association of Australia (FBAA), the peak body representing finance and mortgage brokers, has told brokers that the current Coronavirus pandemic will affect them directly on multiple fronts.

“In over 41 years in this industry I’ve seen many recessions and major issues like the GFC and others, and while the current situation is unprecedented in terms of scale, it’s not difficult to predict many of the effects,” FBAA managing director Peter White AM told members.

While urging brokers to transition to an online model or “be impacted financially”, he said the industry must be ready to guide stressed clients to lenders who can help them in their time of financial hardship.

Mr White also urged brokers to look out for signs that clients might be experiencing mental health issues.

“Remember that people will be worried, particularly at the possibility of losing their family home or business. If you are concerned about the mental health of a client, encourage them to seek help and do anything you practically can to assist them,” he suggested.

However, he said that the flip side for brokers 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 as helping our clients in need. This is important for business viability.”

In an acknowledgement that brokers themselves may struggle over the coming months and even years, he said, “Protect your own health and wellbeing. Practice social distancing and adhere to other recommendations from health authorities. You can’t help clients if you are sick.”