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Broker narrowing client base amid tighter lending standards

by Reporter4 minute read
Tight lending

A NSW-based mortgage broker has resolved to become more selective with regards to the clients she services amid heightened credit standards.

Speaking to The Adviser, investment lending manager at the Australian Lending and Investment Centre (ALIC) Natasha Choi said that she has resolved to work only with clients who are “100 per cent committed”, citing the greater level of work required to lodge a loan application.    

“Not every client is going to be suitable for me, and I’m OK with that,” she said.

“Historically, there are consumers out there that don’t really understand how hard brokers work to get them the right solution. 

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“I’ve decided that I’m putting my foot down. I only want to work with clients that want to work with me.”

She continued: “I’m not going above and beyond for clients who are only half committed, because I know that there are other clients who will be 100 per cent committed. 

“I think that’s pretty important, because as we’ve had to work 30 to 40 per cent harder with the changes in lending policy, and that information is still slowly being relayed to the market.

“As long as you back yourself for the information, knowledge and relationships that you have, I think that will serve a long way.”

However, Ms Choi highlighted the benefits of the broker offering in tight credit environments for borrowers struggling to obtain finance.

“If your circumstances don’t allow you to borrow, it’s about helping them workshop solutions,” she added.

“At the same time, it’s also about diversifying into second tier institutions, which do have a capacity to allow clients to borrow more than your traditional bank would.

“From my perspective, lending has been harder, but the opportunity for brokers has never been greater.” 

[Related: Expenses to be one of 2019’s ‘biggest challenges’: ING]

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