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Finance brokers make the difference as banks tighten up

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Access to finance has become difficult and time consuming, leading to a surge of enquiry to finance brokers, who are able to get a positive result efficiently by having market knowledge and access to dozens of institutions.

While major Australian banks are expected to face further scrutiny on their lending practices as a result of the Royal Commission, many smaller finance providers – who are far less impacted – have embraced the opportunity and are now growing their market share.

Non-bank housing credit has risen by approximately 13% over the past 12 months, compared to growth of just 4.8% for the big four Banks.

Growth in loans to housing investors has dramatically decreased with the big four banks too, jointly by the impact of the Royal Commission, but also due to the Australian Prudential Regulation Authority (APRA) placing a cap on interest-only lending, a favoured product for investors.

These policies do not apply to the entire market, leading to a sharp rise in interest-only investment home loan issuance among non-bank lenders who are able to offer the product and also at comparatively cheaper rates.

Obtaining finance will remain difficult for some time still, however the banking marketplace is large and knowing where to go for your particular circumstance is vital.

Endeavor Finance is available to help with a range of finance options. Whether you have been turned away by a bank or want to assess your options, they can assist. Call today to discuss what you need. 03 5434 7690.

Why choose a finance broker over a bank?

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It’s a question that most people ask when needing a loan – finance broker or bank?

If you’re on the market for a loan chances are you currently bank somewhere and have been a loyal customer for 10+ years. They are the first place that comes to mind when you need a loan. They’re easy to talk to, know your history and have your trust. They’ll get you the best deal, right?

Wrong. Just because you have a ‘relationship’ with your bank doesn’t mean they have the best market rate and fees compared to other banks. Sure they’ll try their best to get you attractive rates available within the company, but their best might be higher than a bank two streets across.

This is where a finance broker comes in handy. A finance broker is your secret weapon. There are a number of reasons why it’s worth choosing a finance broker, here are a few:

Time

Going through the process of a loan can be tiring and frustrating. A finance broker is there to do all the work for you and present it in an easy-to-understand way.

Variety

Finance brokers are associated with a number of financial institutions and will explore a variety of options to find what is the most suitable for your unique situation.

Knowledge

Finance brokers do one thing – loans. They deal with banks daily and are aware of the latest market rates and fees between banks. They know what needs to be done to get the ball rolling and will help with all paperwork and applications.

Funds

Brokers don’t just look at the now, they consider where you will be in five years and whether this loan will still be the right one for you. That includes lower fees, lower rates and special features.

 

A loan can be one of the biggest financial decisions you will ever make so it’s worthwhile getting professional advice when trying to find a lending solution. Let us help you on the journey. Get in touch today.