Was wondering what people thought the risks if any might be if I were to finance through a ‘non-bank lender’. It is not because of bad credit or low docs or any of those sort of reasons – only that their loan seems good to me.
This was recommended by my broker but feel slightly uncomfortable with going with a lender I have never heard of before (namely Loan Ave).
Am I worried about nothing?
Can’t speak directly for Loan Ave as I don’t have them on my panel of lenders – but there’s nothing wrong with smaller lenders per se. They are the ones loaning you the money – not the other way around. If your borrowing less than 80% of your properties value and the loan is variable – refinancing later on won’t be too costly (if you decide you want to stop using them).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Nothing wrong with Loan Avenue as they are merely a mortgage manager acting on behalf of a number of lenders such as Adelaide Bank, Advantedge etc etc.
Becoming a Bank doesn’t put you in the “safe as a basket” category just ask the borrowers of RBS or Northern Rock to name a couple.
As Jamie mentioned you are borrowing money from them not the other way around.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Loan Ave is fine as a lender, they’re a mortgage manager who provide a number of niche products. I’ve always found them to be a reasonable brand to work with. (they’ve also just been bought out by Yellow Brick Road – Mark Bouris’ new brand.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thankyou so much for your responses. I feel confident now, but Corey – would this transition to YBR likely have any impact to the borrower?
It’s early days – there hasn’t been any mention about it being transitioned to YBR, just the business has been purchased. I haven’t heard anything about any consolidation of brand or changing of products.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thankyou so much everyone :)
@corey, do you know if there are any rules within APRA that ownership says the percentages for risk etc have to be “amalgamated” eg it might make a lot of sense for them to continue to be two separate entities.
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