Adelaide-based broker believes relationship-driven practice builds resilience against rate shifts, tax changes, and economic volatility
Prioritising client relationships over transactional activity is the most effective strategy for mortgage brokers navigating a period of heightened uncertainty, according to Sergio Stefano (pictured top), chief executive and head broker at Brokerage & Co.
Stefano said many brokers neglect ongoing client communication once a loan is settled, leaving their businesses exposed when market conditions deteriorate.
"They write the loan, move on, and only resurface when the client comes looking for a refinance," he pointed out. "That model works well for some in a bull market but falls apart when conditions tighten.
"The brokers who will still be here in 10 years are the ones treating every client like a long-term relationship, not a settlement figure. It means more work. It also means a business that isn't at the mercy of whatever the federal government or the Reserve Bank decides to do next."
Stefano said brokerages must be capable of adapting to shifting conditions, pointing to housing tax changes, cash rate movements, global volatility, and weakening consumer confidence as the key pressures currently facing the industry.
A brokerage, he stressed, should not be a business "that only thrives when the market is hot, but one that finds its footing regardless of conditions." He then advised: "Always having something valuable to offer, no matter which direction the market is moving."
The Adelaide-based broker also described his firm's dual-track approach to serving clients across different points in the rate cycle.
"When rates are low and confidence is high, people want to buy," he said. "We help them do that, structuring loans with the assistance of our in-house accountants - that don't just get them into the market but set them up for what comes next.
"When rates rise and the headlines turn negative, people get nervous. They start wondering whether their current loan still makes sense, whether their repayments are going to hurt them, whether there's a better way through. That's when we shift focus, sitting down with existing clients, reviewing their positions, and helping them navigate the noise with clarity."
For Stefano, an educated client is a loyal client. "When someone understands why rates have moved, what it means for their specific situation, and what their options are, they don't panic, they call us," he said. "And that relationship, built on consistent and honest communication, is what keeps a brokerage standing when the market gets uncomfortable."
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