Why you may need to consider a non-bank lender
Whether you’re looking to grow or refinance your portfolio, non-bank lenders could be the right partner for your wealth creation journey.
A common misconception is that non-bank lenders fall under the radar of the stringent rules that apply to more traditional financiers. But the truth is that non-bank lenders have the same obligations as the more conventional lenders.
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In fact, a non-bank lender is more likely to listen to every story of every borrower, leaving out the assumptions most conventional lenders turn to.
Speaking on a recent episode of The Smart Property Investment Show, head of product from Bluestone, Luke Phan, explained why investors should keep their options open and consult a non-bank lender.
“Refinancing with a non-bank lender is something that should be on your radar. You might be very surprised to find that we’re very competitive on rates in the investment space, and that it’s an option that will also allow you to think about where you want to grow your portfolio next as well,” Mr Phan said.
“But if you’re looking to buy another property and your current lender is, I guess, not willing to go on that journey with you, then us in the non-bank lending and Bluestone Home Loans in particular could help you continue that journey,” he noted.
Given that speed to market is currently key for property investors looking to pounce on a purchase, conventional lenders are becoming the less enticing option.
In fact, stories of people missing out on a great deal because of lengthy turnaround times are becoming more and more common. Just in April, the heads of the Finance Brokers Association of Australia (FBAA) and the Mortgage & Finance Association of Australia (MFAA) teamed up to voice their strong concerns regarding the delays impacting mortgages submitted by brokers to the major banks.
Indeed, Momentum Intelligence’s Broker Pulse survey for March 2021 found that CBA’s average turnaround for broker-lodged loans was 12.7 days; NAB’s was 9.4 days; Westpac’s was 13.7 days; and ANZ’s was 16.4 days. (However, it should be noted that all four have seen their turnaround times improve over the last few months, following long delays in January 2021.)
“I’ve heard horror stories,” Mr Phan revealed.
This, he said, is where non-bank lenders can lend a helping hand.
“At Bluestone, our service level is turning around applications within 48 hours. So, you see a property that you’re interested in mid-week and you want to make an offer, usually Saturday is when we go and make offers, you can do that with Bluestone. And there are many lenders out there at the moment who can’t say the same,” he added.
“First thing to do would be work closely with your broker or, if you want to talk to us, contact us directly. That’s fine, too. But having said that, it’s keeping that close relationship with brokers that has allowed us to work through ideas and work through scenarios quickly.
“So, before our broker partners submit an application, they can talk to us and work through scenarios. And we can therefore not waste anyone’s time, sitting around waiting for information, and we can just keep the communication flowing,” Mr Phan said.
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