The non-conforming market place is certainly heating up! In the past two months we have seen specialist lenders reduce rates, reduce fees, improve policies, speed up service times and even pay more. It’s going to make for a very good playing field for those brokers willing to tackle this business.
The reality is, not everyone can qualify for a bank loan for any of a thousand reasons. Maybe they had a credit card that went south when they were younger. Or maybe mum and dad went guarantor on a child’s car lease, he or she defaulted without them knowing, and the default found its way onto their credit file without them even realising it. We know how trigger happy telco companies can be too.
The way the specialist market is presented today is vastly different to what it was six or seven years ago. You can get specialist rates for your clients from 5.29 per cent. That rate could even be applicable for a client with certain bank or credit defaults on their file. Some bank lenders can’t even offer that pricing for their vanilla clients.
Risk fees also no longer make a client gasp when presented with the credit proposal. A fee of 0.50 per cent is becoming more common – this is about a third of what it used to be. In some cases, there is no risk fee. This market is opening up, it is becoming more competitive, and the more brokers that get behind it and support it, the more attractive it will become.
When you help a customer who is facing difficult times get on top of their affairs and you are able to provide a solution when they think all hope is lost, you automatically achieve hero status and I assure you that they will become a client for life.
Let’s seriously diversify and support specialist lending!
Sean Murphy, senior credit adviser, My Mortgage Freedom
Starting his finance career at Liberty Financial in 2007, Sean developed a passion for specialist lending and the challenge of finding a solution for every client.
Having been a BDM at Liberty for almost three years, Sean decided it was time to move on and joined My Mortgage Freedom in the beginning of 2014. Sean's background in SMSF lending and non-conforming residential and commercial mortgages gives the team great scope when dealing with their clients.
Sean's objective is to work with a range of clients in different situations to assist them no matter how challenging the transaction might be.