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Brokers who don’t write specialist loans are doing themselves and their clients a disservice, RESIMAC’s Allan Savins has claimed.
Speaking to The Adviser, Mr Savins said the specialist borrowing market, which currently makes up approximately five per cent of the market, is significantly underserviced.
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There is a common misconception among brokers that specialist loans are “dangerous” or “tough to write”, but this is simply not the case, he said.
In fact, Mr Savins believes writing these loans is very similar to writing prime mortgages.
“It really is exactly the same as writing a prime loan; the only thing brokers have to do is understand the client’s story,” he said.
“They must ask: ‘Why is this client using a specialist lender?’
“Is it because they haven’t been in their job long enough or is it because they are going through a divorce and their solicitor told them not to make their repayments for six months and consequently they have fallen into arrears on their mortgage?”
Mr Savins said that once a broker understands why the borrower needs a specialist product, they will be better positioned to write the loan.
“I can’t stress this enough: brokers just need to understand their client’s story and this really is part of their due diligence anyway.
“Apart from that, there is really no difference. There shouldn’t be disadvantages in writing specialist loans, and frankly, I think it makes a broker a better writer by having that wider shopfront of solutions.”
