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One Size Does Not Fit All


When looking at recent home loan applications that I had lodged over the last eight weeks I remarked to my work colleagues that I had utilized no less than fourteen different lending sources in order to obtain loan approvals for my clients.


Why didn’t I just place all the loan applications with say two or three lenders?


It confirms the reason why borrowers need to be able to access a variety of lending options because their needs and their circumstances are specific to them as individuals . Lenders will confess they operate in some spaces very well and other areas of lending not so well.


Here are some reasons why different lenders are used :-


  • Clients are self employed

  • Lender policy variations

  • Aged borrowers

  • Employment changes have occurred with minimal time in new job

  • Pricing

  • Location of home owned or property to be purchased

  • Access to large amounts of equity

  • Tax deduction


The above points are just a few that come to mind. I’ve obviously noted ‘Price’ in my list but it’s not solely used as a reason to place a loan with a particular institution. Client’s objectives will have an order of priority which must be considered at all times because that’s working in the client’s best interest. The list is of course a lot longer than just the points I’ve noted above.


We are dealing with complex products when it comes to housing finance. Combine that with individual’s specific needs, and choice has to be provided to get good outcomes. The ‘broker channel’ continues to be a strong competitive value proposition for clients.


Contact Michael at COMPASS on 65832211 or email michael@compassadvice.com.au

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