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ISCOVER
Staff Reporter
Australia’s patchy economy spells opportunity for brokers, MKM Capital’s operations and marketing manager Michael Watson has claimed.
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"There is significant negative sentiment surrounding our economy...how long can the mining boom last? What effect will the Eurozone debt issues have on our economy? Are the current household, business and government debt levels sustainable?," Mr Watson said.
"Despite the gloomy outlook jobs are still being created in the economy, suggesting there is still activity outside of just the minerals sector.
“Although side effects of economic asymmetry for individuals include loan arrears, defaults, ATO debt and unsecured creditors, people are still able to find new employment. These applicants are prime candidates for a non-conforming loan," Mr Watson said.
"Debt consolidation loans can be written in an entirely NCCP compliant way for these applicants."
“We urge brokers to look at all their options before designating a file to the too hard basket.”
Mr Watson said Australia’s two-speed economy was responsible for strengthening the value proposition for non-conforming lending – a sentiment that is shared by Red Rock Mortgages director Andrew Cowan.
“The introduction of the NCCP hasn’t affected consumer demand for non-conforming products. Our solid working relationships with key lenders ensure we can find a home for the most difficult of applicants," Mr Cowan said.
