Launch Directors: Dean English, Duncan McKinnon, Joe Del Borrello, Steve Milligan, Warrick Greaves.
The lending market experienced a lot of changes in recent months. This has led to tighter restrictions on lending making it more essential than ever to use a finance broker’s expertise. A broker will navigate the market and find a suitable, competitive product for your lending needs. There are often special offers available in relation to lender policy, rates, fees, features and incentives that may make a specific loan more attractive for you. Your professional finance broker is informed of these opportunities on a daily basis and acts on your behalf to find the right finance solution for you.
“I’ve been with my current lender for many years, we have a
great relationship and I’m well taken care of”
That may be true however over the last few years, due to increased regulatory oversight, lenders have had to significantly tighten their lending policies, meaning that a deal that might have been approved in the past, may no longer meet today’s criteria. Your broker will know BEFORE lodging the application, which lender is likely to approve your application and importantly, which lender may not. Have you checked to see if there is a better loan product out there for you? Your broker will do that for you.
There are a number of second tier non-bank lenders in the market that can offer competitive solutions compared to the big four banks. These non-bank lenders access the market through finance brokers and as a result, drive competition to help consumers find a fairer deal. The most suitable product may in fact be with one of the major lenders however having options is an empowering position to be in.
“Over the last five years, Mortgage Brokers have moderated the dominance of the Major Lenders and increased competition by concluding an increased proportion of their business with lenders other than the Major Banks and their affiliates.”
Source: MFAA (Mortgage and Finance Association of Australia) IIS Report 5th edn., produced by CoreLogic
“How can a finance broker save me TIME?”
The importance of lodging a ‘successful’ application the first time can often be crucial to ensuring finance, settlement and building deadlines are met. There have been many regulatory changes in the market that impact loan credit assessment, particularly those placed on lenders by APRA (Australian Prudential Regulation Authority).
Some examples of changes;
- What type of income lenders will accept or not accept
- Verification of expenses
- Credit requirements for intricate investment or construction lending
- Restrictions in relation to interest only and investment lending
Avoid the stress of suddenly finding you no longer fit your current lender’s credit criteria and risking your application for finance being declined. Your broker will assess your circumstances and give you the best chance possible of getting your loan approved the FIRST TIME, saving you time and stress and ensuring you meet your finance deadlines, helping you progress with your purchase or project.