New product driven by broker demand
Non-bank lender ORDE Financial has introduced a new residential construction product to its extensive range of lending solutions in response to growing demand from brokers.
The product is aimed at providing flexible financing options for borrowers intending to build new homes or carry out major renovations, whether for owner-occupied or investment purposes.
The new residential construction loan offers borrowing solutions of up to $2 million. It is designed to accommodate borrowers with alternative income documentation and those with less than perfect credit histories.
Additionally, the product allows owner-occupiers and investors to borrow up to 80% of the LVR for constructing single or duplex dwellings in category 1 or 2 locations.
While labour and building supply shortages continue to affect housing, CoreLogic’s latest quarterly Cordell Construction Cost Index for July showed that residential construction costs in Australia had stabilised, growing at the slowest annual rate in 22 years.
“We’ve heard over and over again from brokers that there was a need for a construction loan product that’s flexible, transparent, easy to manage, and delivered quickly by an experienced credit team,” said Ryan Harkness (pictured above right), managing director at ORDE Financial.
“ORDE was created specifically to meet broker needs. That’s why we’re excited to offer our new residential construction loans as an extension to our broad product offering, delivered with the exceptional service standards that are a core tenet of ORDE’s value-add for brokers.”
Non-bank boosts team to support brokers
To ensure brokers receive comprehensive support, ORDE has assembled a seasoned and solutions-oriented credit team, the company said in a media release.
The team includes newly appointed deputy head of credit Luke Jones and ORDE head of credit Jason Gidman, offering brokers a market-leading level of service and solutions capability.
ORDE Financial said its national network of business development managers and relationship managers would be on hand to assist brokers throughout the loan process. In addition, ORDE has committed to providing brokers with further education and training on construction loans.
“Our whole team is incredibly well equipped to help brokers and their customers navigate the complexities of construction financing,” said Lee Prior, director of distribution at ORDE.
“Not only do they make the effort to understand every borrower’s individual situation, but they have the experience and the ‘can-do’ attitude needed to reach the right solutions.”
Business growth
Paul Wells (pictured above left), CEO and managing director at ORDE, emphasised that the new residential construction product is the company’s second major launch of 2024. In April, ORDE introduced its Prestige loans, which offer funding for residential properties up to $5 million.
“ORDE is successfully pairing the determination and evolution of a vibrant young business with the exceptional experience and talent of a remarkable team,” said Wells.
“This has allowed us to develop a clarity of culture, singularly focused on bringing value for brokers and their customers. We are working on strong opportunities to extend solutions and set new service standard benchmarks for brokers.”
Established in late 2020, non-bank lender ORDE Financial offers a wide array of flexible lending solutions. To date, it has funded more than $5 billion in loans, exclusively through brokers.
In February, ORDE Financial priced its first Residential Mortgage-Backed Securities (RMBS) public term issuance, amounting to $1 billion – setting a new record as the largest inaugural non-bank RMBS issuance in the country.
How much demand is there for residential construction loans at present? Comment below
