The key players discuss highest areas of lending growth and helping brokers get to know their brand.
The key players discuss highest areas of lending growth and helping brokers get to know their brand.
In which areas of lending did you see the highest growth in 2014?
BETTER MORTGAGE MANAGEMENT: We saw strong growth in lending in the alt-doc space during 2014, supported by falling interest rates and fees and a greater willingness of brokers to write this business after some were scared off after the GFC and regulation.
PEPPER: Pepper’s lending in Australia experienced exponential growth across all product ranges. The main highlights were:
• 90% growth in total mortgage originations (measured by way of settlement dollars)
• 38% growth in specialist lending (measured by way of settlement dollars)
• 48% growth in alternative-documentation loans (measured by way of settlement dollars)
BLUESTONE: Bluestone Mortgages operates within a fairly tight niche of residential home loans, servicing credit-impaired, self-employed and investor markets. We have experienced strong demand and interest from brokers for our loans throughout 2014 across each of these segments and expect this to continue in 2015.
LA TROBE: We experienced strong growth across our entire product range in 2014. However, our SMSF, commercial and construction loan products experienced the highest per cent growth rates within our portfolios. We expect to see continued high levels of activity in 2015 for these products and anticipate our recently launched non-resident loan product will create plenty of activity for both our residential and commercial loan products.
HOMELOANS: In the past, some brokers did not see Homeloans as a prime-loan lender. However, prime lending has made up the vast majority of our business in recent years. Despite the expansion of our specialty range in 2014, our prime products continued to see the highest growth during the year, largely thanks to the launch of the Homeloans Optima loan, a fully featured loan with 100% offset and very competitive rates. This, combined with our existing product suite, has enabled Homeloans to capitalise on the current competitive rate environment and grow market share.
LIBERTY: Liberty had a strong year, thanks to the ongoing support of our business partners. Our residential, motor and commercial businesses all showed strong growth last year. We also saw a strong uptake of our SMSF lending product (SuperCredit) due to the general demand within that sector and our competitive rates and fee structure.
How can you help brokers whose customers may be unfamiliar with your brand?
RESIMAC: Some brokers find selling a non-bank solution to a client challenging. RESIMAC constantly strives to educate brokers on the benefits of our offering. We offer a suite of marketing material outlining the strengths of our organisation and the strength of our funding arrangements. 2015 will represent 30 years in business for RESIMAC, and that brings with it a certain degree of credibility. Shortly, we will also release a number of online training modules aimed at increasing brokers’ skills at selling specialist lending products. It is also important to educate brokers on our range of flexible lending solutions. Once a broker can explain the benefits of why they are offering a non-bank product, customers will be far more receptive.
AUSTRALIAN FIRST MORTGAGE: [We can offer them] our commitment to good old-fashioned service; AFM family values with a corporate vision. This starts when the application comes in and carries on even after settlement. We have a fully-staffed customer service department located in our Sydney office that is dedicated to looking after our brokers’ customers’ loans.
LA TROBE: La Trobe Financial is one of Australia’s leading bank-independent, credit specialist lenders with over 60 years’ history of providing finance to more than 120,000 customers. We have a proven track record as a trusted investment partner for institutional and retail investors alike, managing in excess of $10bn. The longevity of our business, sound management practices (which successfully navigated our way through the GFC without interruption), and multiple national and international awards tell customers we are a lender they can rely on.
IDEN GROUP: We have a great welcoming process for new brokers, complete with a video book that is also a great point-of-sale tool.
HOMELOANS: Homeloans is 30 years old in 2015, is ASXlisted with major shareholders, including Macquarie Bank and NAB, and funding for its comprehensive range of products is sourced from a range of seven large, established and reputable financial institutions. As a third-party lender, we have successfully built our business in conjunction with our broker partners, notwithstanding any unfamiliarity with our brand. While we cannot compete with brand advertising of larger lenders, Homeloans is a principal sponsor of the Perth Scorchers in the T20 Big Bash League, and we have seen increased brand recognition from this sponsorship in 2013 and 2014. In addition, consumer-directed marketing collateral and our website are tools available to brokers to tell the Homeloans story.
Related articles:
Non banks ultimate round-up: Part 1
Non banks ultimate round-up: Part 2
In which areas of lending did you see the highest growth in 2014?
BETTER MORTGAGE MANAGEMENT: We saw strong growth in lending in the alt-doc space during 2014, supported by falling interest rates and fees and a greater willingness of brokers to write this business after some were scared off after the GFC and regulation.
PEPPER: Pepper’s lending in Australia experienced exponential growth across all product ranges. The main highlights were:
• 90% growth in total mortgage originations (measured by way of settlement dollars)
• 38% growth in specialist lending (measured by way of settlement dollars)
• 48% growth in alternative-documentation loans (measured by way of settlement dollars)
BLUESTONE: Bluestone Mortgages operates within a fairly tight niche of residential home loans, servicing credit-impaired, self-employed and investor markets. We have experienced strong demand and interest from brokers for our loans throughout 2014 across each of these segments and expect this to continue in 2015.
LA TROBE: We experienced strong growth across our entire product range in 2014. However, our SMSF, commercial and construction loan products experienced the highest per cent growth rates within our portfolios. We expect to see continued high levels of activity in 2015 for these products and anticipate our recently launched non-resident loan product will create plenty of activity for both our residential and commercial loan products.
HOMELOANS: In the past, some brokers did not see Homeloans as a prime-loan lender. However, prime lending has made up the vast majority of our business in recent years. Despite the expansion of our specialty range in 2014, our prime products continued to see the highest growth during the year, largely thanks to the launch of the Homeloans Optima loan, a fully featured loan with 100% offset and very competitive rates. This, combined with our existing product suite, has enabled Homeloans to capitalise on the current competitive rate environment and grow market share.
LIBERTY: Liberty had a strong year, thanks to the ongoing support of our business partners. Our residential, motor and commercial businesses all showed strong growth last year. We also saw a strong uptake of our SMSF lending product (SuperCredit) due to the general demand within that sector and our competitive rates and fee structure.
How can you help brokers whose customers may be unfamiliar with your brand?
RESIMAC: Some brokers find selling a non-bank solution to a client challenging. RESIMAC constantly strives to educate brokers on the benefits of our offering. We offer a suite of marketing material outlining the strengths of our organisation and the strength of our funding arrangements. 2015 will represent 30 years in business for RESIMAC, and that brings with it a certain degree of credibility. Shortly, we will also release a number of online training modules aimed at increasing brokers’ skills at selling specialist lending products. It is also important to educate brokers on our range of flexible lending solutions. Once a broker can explain the benefits of why they are offering a non-bank product, customers will be far more receptive.
AUSTRALIAN FIRST MORTGAGE: [We can offer them] our commitment to good old-fashioned service; AFM family values with a corporate vision. This starts when the application comes in and carries on even after settlement. We have a fully-staffed customer service department located in our Sydney office that is dedicated to looking after our brokers’ customers’ loans.
LA TROBE: La Trobe Financial is one of Australia’s leading bank-independent, credit specialist lenders with over 60 years’ history of providing finance to more than 120,000 customers. We have a proven track record as a trusted investment partner for institutional and retail investors alike, managing in excess of $10bn. The longevity of our business, sound management practices (which successfully navigated our way through the GFC without interruption), and multiple national and international awards tell customers we are a lender they can rely on.
IDEN GROUP: We have a great welcoming process for new brokers, complete with a video book that is also a great point-of-sale tool.
HOMELOANS: Homeloans is 30 years old in 2015, is ASXlisted with major shareholders, including Macquarie Bank and NAB, and funding for its comprehensive range of products is sourced from a range of seven large, established and reputable financial institutions. As a third-party lender, we have successfully built our business in conjunction with our broker partners, notwithstanding any unfamiliarity with our brand. While we cannot compete with brand advertising of larger lenders, Homeloans is a principal sponsor of the Perth Scorchers in the T20 Big Bash League, and we have seen increased brand recognition from this sponsorship in 2013 and 2014. In addition, consumer-directed marketing collateral and our website are tools available to brokers to tell the Homeloans story.
Related articles:
Non banks ultimate round-up: Part 1
Non banks ultimate round-up: Part 2
