Real solutions for today's borrowers
As the way people earn a living changes, and more borrowers need a flexible approach to assessing their circumstances, near prime loans offer the perfect solution to fill the void in lending options
More
LONG GONE are the days of working nine to five, Monday to Friday, and spending decades working for the same employer. As the way Australians work has changed, so have their finance needs – and that has become only more the case in the last two years of the COVID-19 pandemic.
With small business owners and self-employed Australians being some of the groups most affected by restrictions and lockdowns, many suffered a significant loss of trade as a result.
Even with the lifting of lockdowns and the SME market seeing incomes return to pre-pandemic levels, these borrowers' options for credit have become more limited.
Near prime lending isn’t just for the self-employed or business owners; these solutions can also suit those who have had credit issues in the past, or who may wish to consolidate tax debt. Near prime is a good solution as well for the increasing number of borrowers with side hustles and multiple sources of income.
Bluestone’s chief customer officer, James Angus, says near prime is “all about providing brokers and borrowers solutions”.
With the impact that COVID-19 has had on employment and income, he says near prime is the perfect solution for borrowers who have recently transitioned from PAYG to self-employed, PAYG to contract, full-time to casual or part-time, or who require the lender to accept non-traditional sources of income.
Non-banks offer ideal solution
Calling out the COVID-19 pandemic as one of history’s “most economically disruptive events”, La Trobe Financial’s chief lending officer, Cory Bannister, says that regardless of whether its impact has been positive or negative for customers, it is likely to have produced some volatility in their income and expenses.
Non-banks like La Trobe Financial are ideally suited to this area of lending, Bannister explains, thanks to the custom nature of their credit assessments and willingness to take the time to fully understand the unique position of the borrower.
Near prime lending isn’t just for the self-employed or business owners; these solutions can also suit those who have had credit issues in the past, or who may wish to consolidate tax debt. Near prime is a good solution as well for the increasing number of borrowers with side hustles and multiple sources of income.
Bluestone’s chief customer officer, James Angus, says near prime is “all about providing brokers and borrowers solutions”.
With the impact that COVID-19 has had on employment and income, he says near prime is the perfect solution for borrowers who have recently transitioned from PAYG to self-employed, PAYG to contract, full-time to casual or part-time, or who require the lender to accept non-traditional sources of income.
“Near prime lending, at its core, is about taking the time to understand the borrower's character, circumstance and capacity to repay and then finding a solution,” Angus says.
He points out that banks have become so reliant on data in their assessment that many good borrowers are declined because the data doesn’t fall a certain way, or their income and employment “do not fit neatly into the bank’s box”.
“The banks focus on Mr and Mrs Average because they are the most straightforward loans to turn around quickly, but borrowers don't want to fit into that cookie-cutter mould,” he says.
Resimac is one of Australia and New Zealand’s premier non-bank lenders, offering competitive interest rates and flexible home loan options with great features, including offset accounts and the ability to make extra repayments and redraw funds. Through its flexible funding program, Resimac provides solutions to a wide range of customers, including the self-employed and contractors, as well as customers with previous credit impairments, through its network of over 12,000 broker partners.
Find Out More
Bluestone is a fast-growing lender specialising in residential home loans, with a team of over 270 professionals across Australia, New Zealand and the Philippines. Bluestone started out as an Australian lender headquartered in Sydney in 2000. The company manages over A$11bn in home loans for its Australian and New Zealand customers and has helped over 51,000 Aussies and 13,000 Kiwis with home loans that fit a wide range of circumstances.
Find Out More
Founded in 1952, La Trobe Financial is Australia’s leading credit asset manager with offices in Melbourne, Sydney, Shanghai and Hong Kong. La Trobe Financial has assisted over 205,000 people in achieving their goal of financial independence through property ownership, or in growing their investments in its Credit Fund.
Find Out More
“Near prime lending, at its core, is about taking the time to understand the borrower’s character, circumstance and capacity to repay, and then finding a solution”
James Angus,
Bluestone
In Partnership with
“For near prime customers, their needs are typically more diverse, and there’s usually a little more to their circumstances and story,” Carde says.
“They may be using the finance to consolidate debt, expand their business or just get back on their feet following one of life’s little ‘speed bumps’.
“By understanding their circumstances, brokers can help offer near prime customers a real and sustainable solution now, and also create a client for life through great customer service as they help customers on their journey towards eventually becoming a vanilla prime applicant.”
“For near prime customers, their needs are typically more diverse, and there’s usually a little more to their circumstances and story”
Daniel Carde,
Resimac
James Angus
Bluestone
Cory Bannister
La Trobe Financial
Daniel Carde
Resimac
Barry Saoud
Pepper Money
Industry experts
James Angus joined Bluestone in October 2019 as chief customer officer, with a remit to build best-in-class distribution processes and engagement models for Bluestone’s brokers and customers. With industry experience spanning over 20 years across Australia, Canada and the US, Angus has an outstanding track record of leading highly successful home loan origination and servicing platforms as well as large-scale operational teams, and developing strategic client relationships.
Previously, Angus had a successful 16-year career at Macquarie Bank. As co-head of personal banking intermediaries, he set the sales strategy for third party mortgage distribution and was responsible for generating growth from brokers and other intermediaries. He was a key figure in rebuilding and positioning the Macquarie residential mortgage brand.
Bluestone
James Angus
Cory Bannister is senior vice president, chief lending officer at La Trobe Financial. He joined the company in 2000 and has held both head of credit and head of distribution roles, giving him a rich understanding of the loan origination process via the third party channel, as well as the approval and settlement of institutional and retail loans.
Bannister’s portfolio management experience extends to the selection and allocation of assets for multiple wholesale mortgage portfolios in excess of $1bn. He has been responsible for the management, review, risk profiling and audit of wholesale asset pools. He has also conducted relationships with substantial wholesale and retail investors and overseen reporting in relation to these.
La Trobe Financial
Cory Bannister
Daniel Carde was appointed general manager – product and customer experience at Resimac in December 2021. He joined Resimac in 2006 and in his previous role as general manager distribution he oversaw the distribution of its mortgage products in the direct, broker and wholesale channels. Prior to joining Resimac, Carde held various positions at Citibank, ME Bank and Bank of Queensland and has over 25 years’ experience in banking and finance. He is a graduate of the Australian Institute of Company Directors and a responsible manager for Resimac Limited’s Australian Credit Licence.
Resimac
Daniel Carde
Barry Saoud joined Pepper Money in July 2021 as general manager, mortgages and commercial lending, and is responsible for its strategic direction and operating performance across product, credit and settlements sales functions for Australia and New Zealand mortgages, commercial loans, personal loans and direct sales.
With over two decades’ experience in the financial services sector, Saoud has held numerous roles across legal, company secretary, sales and product management roles with the likes of Aussie Home Loans, GE Capital, HSBC and Norton Rose Fulbright. He is a passionate leader with proven ability to rapidly grow businesses and exceed targets through innovative strategy and effective execution.
Pepper Money
Barry Saoud
Barry Saoud
Pepper Money
Daniel Carde
Resimac
Cory Bannister
La Trobe Financial
James Angus
Bluestone
Industry experts
James Angus joined Bluestone in October 2019 as chief customer officer, with a remit to build best-in-class distribution processes and engagement models for Bluestone’s brokers and customers. With industry experience spanning over 20 years across Australia, Canada and the US, Angus has an outstanding track record of leading highly successful home loan origination and servicing platforms as well as large-scale operational teams, and developing strategic client relationships.
Previously, Angus had a successful 16-year career at Macquarie Bank. As co-head of personal banking intermediaries, he set the sales strategy for third party mortgage distribution and was responsible for generating growth from brokers and other intermediaries. He was a key figure in rebuilding and positioning the Macquarie residential mortgage brand.
Bluestone
James Angus
Cory Bannister is senior vice president, chief lending officer at La Trobe Financial. He joined the company in 2000 and has held both head of credit and head of distribution roles, giving him a rich understanding of the loan origination process via the third party channel, as well as the approval and settlement of institutional and retail loans.
Bannister’s portfolio management experience extends to the selection and allocation of assets for multiple wholesale mortgage portfolios in excess of $1bn. He has been responsible for the management, review, risk profiling and audit of wholesale asset pools. He has also conducted relationships with substantial wholesale and retail investors and overseen reporting in relation to these.
La Trobe Financial
Cory Bannister
Daniel Carde was appointed general manager – product and customer experience at Resimac in December 2021. He joined Resimac in 2006 and in his previous role as general manager distribution he oversaw the distribution of its mortgage products in the direct, broker and wholesale channels. Prior to joining Resimac, Carde held various positions at Citibank, ME Bank and Bank of Queensland and has over 25 years’ experience in banking and finance. He is a graduate of the Australian Institute of Company Directors and a responsible manager for Resimac Limited’s Australian Credit Licence.
Resimac
Daniel Carde
Barry Saoud joined Pepper Money in July 2021 as general manager, mortgages and commercial lending, and is responsible for its strategic direction and operating performance across product, credit and settlements sales functions for Australia and New Zealand mortgages, commercial loans, personal loans and direct sales.
With over two decades’ experience in the financial services sector, Saoud has held numerous roles across legal, company secretary, sales and product management roles with the likes of Aussie Home Loans, GE Capital, HSBC and Norton Rose Fulbright. He is a passionate leader with proven ability to rapidly grow businesses and exceed targets through innovative strategy and effective execution.
Pepper Money
Barry Saoud
Barry Saoud
Pepper Money
Daniel Carde
Resimac
Cory Bannister
La Trobe Financial
James Angus
Bluestone
Industry experts
James Angus joined Bluestone in October 2019 as chief customer officer, with a remit to build best-in-class distribution processes and engagement models for Bluestone’s brokers and customers. With industry experience spanning over 20 years across Australia, Canada and the US, Angus has an outstanding track record of leading highly successful home loan origination and servicing platforms as well as large-scale operational teams, and developing strategic client relationships.
Bluestone
James Angus
Cory Bannister is senior vice president, chief lending officer at La Trobe Financial. He joined the company in 2000 and has held both head of credit and head of distribution roles, giving him a rich understanding of the loan origination process via the third party channel, as well as the approval and settlement of institutional and retail loans.
Bannister’s portfolio management experience extends to the selection and allocation of assets for multiple wholesale mortgage portfolios in excess of $1bn. He has been responsible for the management, review, risk profiling and audit of wholesale asset pools. He has also conducted relationships with substantial wholesale and retail investors and overseen reporting in relation to these.
La Trobe Financial
Cory Bannister
Daniel Carde was appointed general manager – product and customer experience at Resimac in December 2021. He joined Resimac in 2006 and in his previous role as general manager distribution he oversaw the distribution of its mortgage products in the direct, broker and wholesale channels. Prior to joining Resimac, Carde held various positions at Citibank, ME Bank and Bank of Queensland and has over 25 years’ experience in banking and finance. He is a graduate of the Australian Institute of Company Directors and a responsible manager for Resimac Limited’s Australian Credit Licence.
Resimac
Daniel Carde
Barry Saoud joined Pepper Money in July 2021 as general manager, mortgages and commercial lending, and is responsible for its strategic direction and operating performance across product, credit and settlements sales functions for Australia and New Zealand mortgages, commercial loans, personal loans and direct sales.
With over two decades’ experience in the financial services sector, Saoud has held numerous roles across legal, company secretary, sales and product management roles with the likes of Aussie Home Loans, GE Capital, HSBC and Norton Rose Fulbright. He is a passionate leader with proven ability to rapidly grow businesses and exceed targets through innovative strategy and effective execution.
Pepper Money
Barry Saoud
Share
Share
Taking the time to understand borrowers
Taking the time to understand borrowers
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
Copyright © 1996-2022 Key Media, Inc.
Support needed by small businesses
1 in 3
SMEs have been unable to source
new funding – mainly because their applications have been rejected
of SMEs are trying to pay down debt
34%
of SMEs plan to use a non-bank lender for new growth measures
28.7%
Source: ScotPac SME Growth Index
“For near prime customers, their needs are typically more diverse, and there’s usually a little more to their circumstances and story”
Daniel Carde, Resimac
Share of broker-originated home loans settled in each lender segment
Source: MFAA Industry Intelligence Service, 12th Edition
Major banks (ANZ, CBA, NAB, Westpac; primary brands only)
50
40
30
20
10
0
(Hover over bars for more info)
49.0%
44.1%
Regional banks owned by or aligned to major banks (ie Bankwest, St. George, etc.)
Independent regional banks (ie Suncorp, Bendigo-Adelaide, etc.)
International banks (ie ING Direct, Citi, etc.)
Brokers' white label loans
Any other type of lender (ie Macquarie Bank; AMP Bank)
Non-bank lenders
Credit unions, building societies and mutuals
Oct-Dec 2020
Jan-Mar 2021
13.3%
15.4%
“As more borrowers with diverse financial backgrounds look for someone who understands them and is willing to take a look at their unique situation, brokers will become more vital than ever”
BARRY SAOUD,
PEPPER MONEY
“We look at it as being a great privilege and responsibility to do what we do, being able to finance borrowers that do not fit the mainstream algorithms”
CORY BANNISTER, LA TROBE FINANCIAL
7.1%
7.2%
5.6%
6.2%
5.1%
6.0%
11.8%
12.3%
5.5%
6.0%
2.6%
2.8%
Copyright © 1996-2022 Key Media, Inc.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
Copyright © 1996-2022 Key Media, Inc.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
For brokers having these conversations with their clients, Bannister says the key is to understand the borrower’s situation and communicate it clearly to the lender.
“The more information we have up front, the quicker and easier we can provide a solution,” Bannister says.
“There is no difference between a broker’s approach to selling a prime loan and selling a near prime loan; the process is the same, and by following responsible lending guidelines – making reasonable enquiries as to the borrower’s financial situation, requirements and objectives – brokers are well equipped to complete a near prime loan application.”
“We look at it as being a great privilege and responsibility to do what we do, being able to finance borrowers that do not fit the mainstream algorithms”
CORY BANNISTER,
LA TROBE FINANCIAL
Preparing for increasing volumes by supporting brokers
Agreeing that near prime lending has been critical during COVID-19, Pepper Money’s general manager, mortgage and commercial lending, Barry Saoud, expects that as Australia moves further into a post-lockdown world, more borrowers may be turned down by prime lenders because of their situations over the last 18 months.
Pepper Money is expanding its product suite in 2022 to deliver additional mortgage products and unlock new customer segments. Saoud says this will enable brokers to help borrowers who are being underserved and left out.
Find Out More
Non-banks offer ideal solution
Calling out the COVID-19 pandemic as one of history’s “most economically disruptive events”, La Trobe Financial’s chief lending officer, Cory Bannister, says that regardless of whether its impact has been positive or negative for customers, it is likely to have produced some volatility in their income and expenses.
Preparing for increasing volumes by supporting brokers
Agreeing that near prime lending has been critical during COVID-19, Pepper Money’s general manager, mortgage and commercial lending, Barry Saoud, expects that as Australia moves further into a post-lockdown world, more borrowers may be turned down by prime lenders because of their situations over the last 18 months.
Non-banks like La Trobe Financial are ideally suited to this area of lending, Bannister explains, thanks to the custom nature of their credit assessments and willingness to take the time to fully understand the unique position of the borrower.
“Without putting too fine a point on it, simply, without non-banks stepping in to fill the void, many consumers would have been left with their finance needs unmet, which had and continues to have the potential to produce a further drag on the economy,” Bannister says.
“We look at it as being a great privilege and responsibility to do what we do, being able to finance borrowers that do not fit the mainstream algorithms, as we know what it means to them and what a difference it can make.”
For brokers having these conversations with their clients, Bannister says the key is to understand the borrower’s situation and communicate it clearly to the lender.
“The more information we have up front, the quicker and easier we can provide a solution,” Bannister says.
“There is no difference between a broker’s approach to selling a prime loan and selling a near prime loan; the process is the same, and by following responsible lending guidelines – making reasonable enquiries as to the borrower’s financial situation, requirements and objectives – brokers are well equipped to complete a near prime loan application.”
Pepper Money is expanding its product suite in 2022 to deliver additional mortgage products and unlock new customer segments. Saoud says this will enable brokers to help borrowers who are being underserved and left out.
“As more borrowers with diverse financial backgrounds look for someone who understands them and is willing to take a look at their unique situation, brokers will become more vital than ever before in a complicated and fast-moving marketplace,” Saoud says.
In addition to its expanding product suite, Pepper Money is continuing to invest in technology to provide scale and efficiency, which is enabling the non-bank to manage increasing application volumes while maintaining leading turnaround times.
“All these investments are being made to help brokers and introducers efficiently and effectively cater to this growing segment of the addressable mortgage market,” says Saoud.
He says it's important that brokers transform and adapt to the change in the lending and borrower landscape. The conversations brokers should be having with their borrowers should allow brokers to better understand each client's unique financial position, loan purpose and objectives, employment profile, repayment or savings history, debt position, and any history of adverse credit issues.
Borrowers will also gain a better understanding of the near prime solutions available to them.
“We understand that borrowers don’t typically understand the concept of prime, near prime or specialist solutions. However, borrowers will continue to seek out lending solutions for their real and unique life circumstances, so there’s a golden opportunity for brokers to help them do this,” Saoud says.
Near prime lending isn’t just for the self-employed or business owners; these solutions can also suit those who have had credit issues in the past, or who may wish to consolidate tax debt. Near prime is a good solution as well for the increasing number of borrowers with side hustles and multiple sources of income.
Bluestone’s chief customer officer, James Angus, says near prime is “all about providing brokers and borrowers solutions”.
With the impact that COVID-19 has had on employment and income, he says near prime is the perfect solution for borrowers who have recently transitioned from PAYG to self-employed, PAYG to contract, full-time to casual or part-time, or who require the lender to accept non-traditional sources of income.
Near prime offers these customers an “immediate option” to commence their homeownership journey – but it doesn’t have to be the end journey; it can be a step in the journey to a solid financial future. This leads the way for brokers to educate their borrowers about all their options both now and in the future, Angus explains.
“The conversations are the same because brokers now take a whole-of-life approach to their client relationships,” he adds.
Taking the time to understand borrowers
“For near prime customers, their needs are typically more diverse, and there’s usually a little more to their circumstances and story,” Carde says.
“They may be using the finance to consolidate debt, expand their business or just get back on their feet following one of life’s little ‘speed bumps’.
“By understanding their circumstances, brokers can help offer near prime customers a real and sustainable solution now, and also create a client for life through great customer service as they help customers on their journey towards eventually becoming a vanilla prime applicant.”
Non-banks like Resimac support near prime borrowers with flexible products. In Resimac’s case, its Prime Alt Doc and Specialist Clear Alt Doc loans provide a flexible approach to assessing a self-employed borrower’s income, based on their true trading position.
Carde says the non-bank treats each applicant as an individual person, not a number. Its BDMs and relationship managers work closely with brokers to understand their customers’ needs and ensure their products are the right fit.
Daniel Carde, Resimac's general manager, product and customer experience, says near prime lending has never been as important or useful as during COVID-19.
“Despite a return to normal trading activity, [small businesses'] full-year financials didn’t necessarily look good as they needed to demonstrate two years of consistent income – as demonstrated via tax returns – to qualify for a prime loan,” Carde says.
“Naturally, near prime is perfectly positioned to fill the void, and then some.”
LONG GONE are the days of working nine to five, Monday to Friday, and spending decades working for the same employer. As the way Australians work has changed, so have their finance needs – and the last two years of the coronavirus pandemic have only made that more prevalent.
With small business owners and self-employed Australians being some of the groups most affected by restrictions and lockdowns, many have suffered a significant loss of trade.
Even with the lifting of lockdowns and the SME market seeing incomes return to pre-pandemic levels, these borrowers' options for credit have become more limited.
“Near prime lending, at its core, is about taking the time to understand the borrower's character, circumstance and capacity to repay and then finding a solution,” Angus says.
He points out that banks have become so reliant on data in their assessment that many good borrowers are declined because the data doesn’t fall a certain way, or their income and employment “do not fit neatly into the bank’s box”.
Pepper Money is a non-bank lender with businesses in Australia and New Zealand. Pepper Money provides a variety of home loan options, as well as car loans, personal loans, loans for professional equipment, and commercial loans. In 2021 Pepper Money listed on the Australian Securities Exchange (ASX: ticket PPM).
Find Out More
Share of broker-originated home loans settled in each lender segment
Source: MFAA Industry Intelligence Service, 12th Edition
50
40
30
20
10
0
Oct-Dec 2020
Jan-Mar 2021
49.0%
44.1%
13.3%
15.4%
7.1%
7.2%
5.6%
6.2%
5.1%
6.0%
11.8%
12.3%
5.5%
6.0%
2.6%
2.8%
Regional banks
owned by or aligned to major banks (ie BankWest, St. George etc)
Major banks (ANZ, CBA, NAB, Westpac; primary brands only
Independent regional banks (ie Suncorp, Bendigo-Adelaide etc)
International banks (ie ING Direct, Citi, etc)
Any other type of lender
(ie Macquarie Bank; AMP Bank)
Non-bank lenders
Credit unions, building societies and mutuals
Brokers' white label loans
“As more borrowers with diverse financial backgrounds look for someone who understands them and is willing to take a look at their unique situation, brokers will become more vital than ever”
BARRY SAOUD,
PEPPER MONEY
“As more borrowers with diverse financial backgrounds look for someone who understands them and is willing to take a look at their unique situation, brokers will become more vital than ever before in a complicated and fast-moving marketplace,” Saoud says.
In addition to its expanding product suite, Pepper Money is continuing to invest in technology to provide scale and efficiency, which is enabling the non-bank to manage increasing application volumes while maintaining leading turnaround times.
“All these investments are being made to help brokers and introducers efficiently and effectively cater to this growing segment of the addressable mortgage market,” says Saoud.
He says it's important that brokers transform and adapt to the change in the lending and borrower landscape. The conversations brokers should be having with their borrowers should allow brokers to better understand each client's unique financial position, loan purpose and objectives, employment profile, repayment or savings history, debt position, and any history of adverse credit issues.
Borrowers will also gain a better understanding of the near prime solutions available to them.
“We understand that borrowers don’t typically understand the concept of prime, near prime or specialist solutions. However, borrowers will continue to seek out lending solutions for their real and unique life circumstances, so there’s a golden opportunity for brokers to help them do this,” Saoud says.
Daniel Carde, Resimac's general manager, product and customer experience, says near prime lending has never been as important or useful as during COVID-19.
“Despite a return to normal trading activity, [small businesses'] full-year financials didn’t necessarily look good as they needed to demonstrate two years of consistent income – as demonstrated via tax returns – to qualify for a prime loan,” Carde says.
“Naturally, near prime is perfectly positioned to fill the void, and then some.”
Non-banks like Resimac support near prime borrowers with flexible products. In Resimac’s case, its Prime Alt Doc and Specialist Clear Alt Doc loans provide a flexible approach to assessing a self-employed borrower’s income, based on their true trading position.
Carde says the non-bank treats each applicant as an individual person, not a number. Its BDMs and relationship managers work closely with brokers to understand their customers’ needs and ensure their products are the right fit.
Near prime offers these customers an “immediate option” to commence their homeownership journey – but it doesn’t have to be the end journey; it can be a step in the journey to a solid financial future. This leads the way for brokers to educate their borrowers about all their options both now and in the future, Angus explains.
“The conversations are the same because brokers now take a whole-of-life approach to their client relationships,” he adds.
“Without putting too fine a point on it, simply, without non-banks stepping in to fill the void, many consumers would have been left with their finance needs unmet, which had and continues to have the potential to produce a further drag on the economy,” Bannister says.
“We look at it as being a great privilege and responsibility to do what we do, being able to finance borrowers that do not fit the mainstream algorithms, as we know what it means to them and what a difference it can make.”
For brokers having these conversations with their clients, Bannister says the key is to understand the borrower’s situation and communicate it clearly to the lender.
“The more information we have up front, the quicker and easier we can provide a solution,” Bannister says.
Preparing for increasing volumes by supporting brokers
Agreeing that near prime lending has been critical during COVID-19, Pepper Money’s general manager, mortgage and commercial lending, Barry Saoud, expects that as Australia moves further into a post-lockdown world, more borrowers may be turned down by prime lenders because of their situations over the last 18 months.
Pepper Money is expanding its product suite in 2022 to deliver additional mortgage products and unlock new customer segments. Saoud says this will enable brokers to help borrowers who are being underserved and left out.
“As more borrowers with diverse financial backgrounds look for someone who understands them and is willing to take a look at their unique situation, brokers will become more vital than ever”
BARRY SAOUD,
PEPPER MONEY
“There is no difference between a broker’ s approach to selling a prime loan and selling a near prime loan; the process is the same, and by following responsible lending guidelines – making reasonable enquiries as to the borrower’s financial situation, requirements and objectives – brokers are well equipped to complete a near prime loan application.”
“We look at it as being a great privilege and responsibility to do what we do, being able to finance borrowers that do not fit the mainstream algorithms”
CORY BANNISTER,
LA TROBE FINANCIAL
“As more borrowers with diverse financial backgrounds look for someone who understands them and is willing to take a look at their unique situation, brokers will become more vital than ever before in a complicated and fast-moving marketplace,” Saoud says.
In addition to its expanding product suite, Pepper Money is continuing to invest in technology to provide scale and efficiency, which is enabling the non-bank to manage increasing application volumes while maintaining leading turnaround times.
“All these investments are being made to help brokers and introducers efficiently and effectively cater to this growing segment of the addressable mortgage market,” says Saoud.
He says it's important that brokers transform and adapt to the change in the lending and borrower landscape. The conversations brokers should be having with their borrowers should allow brokers to better understand each client's unique financial position, loan purpose and objectives, employment profile, repayment or savings history, debt position, and any history of adverse credit issues.
Borrowers will also gain a better understanding of the near prime solutions available to them.
“We understand that borrowers don’t typically understand the concept of prime, near prime or specialist solutions. However, borrowers will continue to seek out lending solutions for their real and unique life circumstances, so there’s a golden opportunity for brokers to help them do this,” Saoud says.
Pepper Money is a non-bank lender with businesses in Australia and New Zealand. Pepper Money provides a variety of home loan options, as well as car loans, personal loans, loans for professional equipment, and commercial loans. In 2021 Pepper Money listed on the Australian Securities Exchange (ASX: ticket PPM).
Find Out More
Pepper Money is a non-bank lender with businesses in Australia and New Zealand. Pepper Money provides a variety of home loan options, as well as car loans, personal loans, loans for professional equipment, and commercial loans. In 2021 Pepper Money listed on the Australian Securities Exchange (ASX: ticket PPM).
Find Out More
US
CA
AU
NZ
UK
News
Mortgage Industry
Best in Mortgage
Specialty
TV
Resources
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK