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Non-conforming products make comeback

by Staff Reporter8 minute read
The Adviser

Tighter lending criteria from mainstream lenders has pushed up demand for non-conforming products.

According to the latest Adviser weekly straw poll, 43.3 per cent of brokers have seen demand increase over the last 12 months, while 32.7 per cent believe demand for the products has waned.

Of the 275 respondents, just 24 per cent felt demand had stayed the same.

Specialist lender MKM Capital’s operations and marketing manager Michael Watson said the global financial crisis had forced lenders to tighten their criteria, which has forced more buyers to seek non-conforming products.

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“The global financial crisis changed the face of non-conforming products,” Mr Watson told The Adviser.

“Today, non-conforming products are appealing to good customers with tricky situations as well as traditional credit impaired customers.”

Mr Watson said MKM Capital had seen an increase in demand for non-conforming products over the last 12 months, a trend that is expected to continue into the future.

RESIMAC chief operating officer Allan Savins told The Adviser as the banks’ lending criteria tightens, specialist loans will become “even more relevant in filling the void”.

“It is important to the mortgage market for lenders like RESIMAC to provide such products as borrowers vary in their needs and financial position and will not always qualify for a Prime mortgage.”

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