The value proposition of non-bank lenders is becoming more popular, as brokers increasingly seek out alternatives to the banks in a rapidly changing and complex lending market.
Speaking to Australian Broker
, Liberty Financial national sales manager John Mohnacheff said the non-bank has had to adapt quickly to the “unprecedented influx” of new loan applications.
“We're delighted to say that the volume of applications over the last two months has doubled – which has of course created its own problems in the back office, however, to handle this unprecedented influx, we've employed an army of new people to meet the demand,” he told Australian Broker
“I can give you my word that we're doing everything possible to provide the best possible outcomes for our business partners.”
The influx of demand is a result of APRA’s crackdown in investment lending, which has been many major and non-major banks announce increased interest rates and lower maximum LVRs on loans to investors.
However, according to Mohnacheff, Liberty is seeing an increase in both owner-occupied and investment applications.
“The most pleasing thing for Liberty is that the increased applications are not just for investors, but are actually across the whole credit spectrum,” he told Australian Broker
“The other exciting thing is that we're receiving and engaging with many brokers who have never used us in the past. A real win-win.”
Mohnacheff says he expects this trend to grow following Westpac’s decision to increase interest rates across the board – on owner occupied and investment loans – by 20 basis points last week.