LJ Hooker grabs new funding in drive for stickier customers

by Adam Smith24 Nov 2011

LJ Hooker has added Adelaide Bank to its range of funders, and head of finance Peter Bromley has said the move will create stickier customers for the company.

Adelaide Bank has joined Advantedge and ING Direct in providing funding to LJ Hooker’s product suite, and Bromley told Australian BrokerNews the lender will add a full range of fixed rates, as well as an offset account and secured Visa to its stable of products. Bromley said each funder the company has brought onboard has offered “unique products and underwriting”.

“The biggest thing we saw we were missing is we didn't have a 100% offset product. This works for people buying their own property, but also for investors. The other one we saw is a bridging loan,” he said.

Bromley said the bridging finance available through the Adelaide funding line will appeal not just to investors, but to owner occupiers as well.

“Based on the property's value, people can capitalise the interest and the serviceability is worked out on the end of the debt. If we have a customer come back and say they're looking to sell their property, but also want to buy a new property before the first one sells, if we can help do that now, that's even better,” he said.

LJ Hooker has spent much of 2011 expanding both its line of funding and its product suite, Bromley said. He said the move was part of the company’s initiative to create stickier customers through offering a variety of products along with its real estate service.

“They can have an offset account, a line of credit and a secured Visa. If the client chooses to use your products more, they tend to stick more,” Bromley said.

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