Why some borrowers take a wait-and-see approach
One of the most noticeable impacts of an election year is a temporary shift in borrower confidence. Glenn McLeod (pictured, right), Head of Link Advisory, says election periods can cause some to pause major financial decisions while they wait for greater clarity around policy direction.
“In the lead-up to an election, we usually see things slow slightly as when there is uncertainty around where policy might land, especially around housing or investment, people can hesitate or delay decisions.”
However, McLeod is quick to point out that elections seldom bring the market to a standstill.
“it is rarely a full stop. Most clients still move based on their own needs and timing. Elections can influence sentiment, but they do not tend to override personal drivers like family, income or life changes.”
Baden Martin (pictured, left), General Manager of Lending at Liberty Financial, agrees. “Elections tend to introduce a collective pause,” he says. “Through our advisers, we see a proportion of borrowers, particularly purchasers rather than refinancers, adopt a wait-and-see mindset as polling day approaches.”