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Voted best Specialist product by the people who matter in The Adviser’s Broker Product of Choice: Non-Bank Survey, Pepper Money shares what it takes to specialise in providing real life options.
Real Life Specialist Solutions
In real life, a Specialist home loan might be an option for your clients for a number of reasons: they may be recently self-employed, have a past bankruptcy, have non-traditional income, or be behind in bill repayments. However, these situations are just a part of their story - real life happening to everyday Australians who are capable of moving forward.
This is where non-bank lenders like Pepper Money come in. We aim to provide borrowers with a broader range of loan options than traditional lenders and work closely with brokers to help them achieve their goals.
Put simply, we look at things differently. While all loans are subject to the same inquiry, verification and assessment - including credit checks and repayment histories - Pepper Money takes the time to understand a customers’ personal circumstances. To connect with their goals, acknowledge they are not defined by their situation and find a win-win outcome. And despite the individual assessment process, we maintain a one-day turnaround for home loan enquiries.
Some common Specialist home loan solutions we can assist customers with include:
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General purpose |
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Income from various sources |
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Missed repayments |
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Adverse credit |
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Debt consolidation |
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Helping customers succeed
As well as financial assistance, borrowers are looking for someone to take the time to understand their circumstances and show that they genuinely want to help them succeed. It’s important to understand their situation but also know that they are more than their circumstances.
Sometimes clients expect a loan from a major bank at an interest rate that they’ve seen advertised, when it isn’t currently available to them. If brokers find themselves in this situation, communication is key. It is important for brokers to create a positive environment while they clearly outline how the lender can cater to their specific needs.
A practice we’ve always encouraged brokers to follow is Pepper Money’s 5 step process - a guide that has assisted brokers over many years in putting forward a specialist solution to their customers while helping them navigate the emotional aspect of the customer’s lending experience
Pepper Money’s 5 Step Process
After addressing the key areas below as part of your research, you can begin the 5 step process.
- Find a lender(s) that can accommodate your client’s needs
- Ensure that the scenario passes serviceability and the loan is viable
- Know that the specialist solution will provide a benefit(s) to your client
This can be made easier through Pepper Money’s Product Selector which can quickly determine if there is a potential Pepper Money product available for their specific scenario.
Step one in positioning a Specialist solution is to work with the customer to help them understand why they are not eligible for a loan from a traditional lender at this time. Be empathetic and make sure to speak in terms that they understand – try not to fall back on industry jargon.
Step two. Offer the alternative options that you have identified can help them, and clearly outline how the products meet their needs. This will provide them with a level of comfort, particularly if they’re not familiar with the brand.
Step three. The first thing a customer will likely want to know is their financial obligations. Put this into context for them by showing repayments based on their pay cycle and showing that they can afford the loan. The Pepper Product Selector tool helps by clearly outlining the monthly repayments within the Indicative Offer.
Step four is to assure them that this potential solution is in their best interest financially and can help put them on the path to achieving their long-term goals.
The final step is to confirm whether the customer is happy to proceed with a proposed solution and submit an application when ready.
Specialist lending can be just as simple as Prime lending.
In Pepper Money’s case, the loan assessment a broker carries out remains the same for both, and the application process is no different. As always, when submitting a strong application attention to detail is key. Taking the time to include as much information as possible upfront will save time in processing and could lead to a quicker approval for the customer.
If you have a customer you believe may need a Specialist home loan solution, contact your Pepper Money BDM or our dedicated Scenarios Team today. Alternatively, run your scenario through the Pepper Product Selector tool which could give you an Indicative Offer within 2 minutes.
Talk to Pepper Money today
1800 737 737
pepper.com.au/broker
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