A non-bank lender has explained how mortgage brokers have been responsible for driving the group’s surge in developer finance over recent months.
Speaking to The Adviser, NWC Finance partner Joe Morello said the group has seen a significant increase in business since it started targeting brokers and working with aggregators.
“We would get a minimum of 90 per cent of business from brokers,” Mr Morello said. “They are our core focus. We’re finding a lot of mortgage brokers that have traditionally been involved in home loans moving into commercial deals because they are more lucrative,” he said.
Mr Morello said NWC Finance offers a 1.1 per cent commission on deals settled. He explained one recent broker-introduced deal, where the client had purchased a development site in Sydney for $22 million.
“The pre-arranged finance for that purchase fell over 24 hours prior to settlement. They risked losing their $2.4 million deposit, associated DA costs and the property.
“We managed to loan them $12 million secured through the first mortgage over the development site and a second mortgage over collateral security,” Mr Morello said. “We turned it around within 24 hours.”
Based on a 1.1. per cent commission, the broker would receive $132,000.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
The number of mortgage brokers branching into commercial loans ha...
A new fintech backed by Resimac has launched, aiming to overcome ...