3 minute read
Unlocking opportunities with non-bank lending. It might be easier than you think.
For some financial advisers, non-conforming lending can fall into the too-hard basket. However, it can make good business sense for you, and can be life changing for your clients. For a financial adviser, non-conforming describes a world of opportunity. When a bank says “No”, they are saying no to loans that do not conform to their credit criteria, which represents their appetite for risk. Yet, they could be saying no to people who are capable of servicing a home loan.
That’s
Where
non-bank lenders can help. We price for risk.
Bank “No” decisions to home loans are an opportunity to explore what non-bank lenders
Non-bank home loans can change your client’s lives.
As home loans go, non-bank loans can be a bit special because the people that need them most are often those with some big life changes Here’s how you can make a realnon-bank options.
1. Know the possibilities
Firstly, make sure you ’ re accredited with the relevant lenders. Then you can talk to your clients about non-bank home loans and how the product(s) could meet their situation and needs from the start. So, if a non-bank product is right for them, it’s not new information.
2. Communicate their options
If a non-bank loan could be a it as a genuine possibility for their situation can be a conversation starter Understanding their options can open opportunities.
3. Keep things real
Speak in terms the client understands. For example, provide estimated repayments and frequency that coincides with their pay cycle.
4. Make the flexibility visible
When explaining their options, be clear on how the solution could help them meet their longterm objectives. And help them understand that as their situation changes, they may be able to consider new options in the future.
5. Explain account features that might help clients achieve their goals
Features like Additional Advances, for clients to understand how these may help meet their goals.
Are non-bank home loans hard work?
Non-bank home loans are often known as specialist loans, originally named to highlight the expertise required to write them However, this is no longer the case. We’ve made nonbank lending easy so we can help any financial adviser take a client through the non-bank home loan process
Make it easier with Pepper Product Selector Pepper Product Selector (PPS) gives you the option to identify a Pepper Money product fit for your client.
It combines some simple information about your client, together with their credit history information to potentially provide an rate and fees in under 5 minuteswithout impacting their credit score.
Important to know:
With the client’s written consent, answer a simple set of questions online
All applications to us are subject to us completing responsible lending checks and considering the borrower’s individual circumstances. Credit assessment, eligibility criteria, lending limits, terms, conditions, fees and charges apply The information in this article is a guide. It’s not intended to imply any recommendation about any financial product(s) or constitute tax advice. For more information about our products, please refer to our online product guide, or talk to your BDM. Of course, if your client requires financial or tax advice they should consult a licensed financial or tax adviser
*Pepper Product Selector is a great tool for quick responses. But please note that terms and conditions apply to its use.
Pepper Money then makes a credit enquir y on their credit report identified; Pepper Money will provide it to them
The moral of the stor y?
If the bank says no to your client, give it the non-bank lender test with Pepper Money It could turn a ‘no’ into a ‘yes!’
Do you have a borrower the bank said no to? Talk to us today.
Pepper Money 0800 945 658 scenariocentre@peppermoney.co.nz adviser.peppermoney.co.nz formal approval for a loan and financial commitments must not be entered into based on that indicative response. It’s not a suggestion or recommendation of any particular loan product. It’s a guide only based on the basic information provided and the credit history information obtained for the primary applicant. The actual interest rate and approval will depend on the applicant’s circumstances and their information verified during the loan application assessment after a formal application has been submitted. The final interest rate may be more or less than the rate provided in the indicative applicants, the circumstances of our decision regarding any formal loan application.
© Pepper New Zealand Limited NZBN 9429031065153 | NZ Company Number 3416551
Sourcing non-bank finance for your prime clients? If the rates are double digits, there may be a better fit.
Keen to know more? Contact the property lending specialists at Resimac.
ADVISERORIGINATED MORTGAGES:
