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La Trobe Financial offers one of the broadest product ranges in the non-bank market
The non-bank space has changed considerably over time. Beginning predominantly as an avenue for borrowers who do not fit the major banks’ acceptance criteria, non-banks now provide very competitive alternatives to the major banks both for “prime” borrowers, as well as continuing to cater to borrowers under serviced by the majors.
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Growth in the non-bank space has been aided significantly in recent years as a result of the great work performed by finance brokers advocating the non-bank space. Consumers’ acceptance of lenders other than those occupying “main street” is growing, though there is still much more work to be done.
La Trobe Financial is one of the longest-standing non-bank lenders operating in the market today, serving our first customer more than 60 years ago. From
offering residential finance for borrowers passed over by the major banks, we have grown considerably, not only in size and scale, but in our ability to offer a genuine alternative to the major banks for mortgage finance across numerous asset classes, giving us a unique and unrivalled position in the market.
Recognising that it is not just “mum-and-dad” home loan borrowers who can often be overlooked by mainstream lenders, we expanded our product range to cater for a much wider set of borrowers, asset types and scenarios – this is what makes us a true “credit specialist” in the non-bank space.
Our product range comprises six main areas:
- Residential
- Commercial
- Construction/ development
- SMSF
- Non-resident
- Rural
Creating opportunities for brokers
Creating opportunities for brokers to grow their business forms the core of our thinking when constructing our innovative products. We are 100 per cent reliant on the third-party channel for origination of our loans so we are always thinking of how we can improve the broker experience and help brokers achieve more
with their businesses – we really are in this together.
We often hear brokers say “We don’t write commercial/Lite-DocTM/SMSF/construction” and when asked why, we are told “It’s too hard, too complicated
and not something we want to get involved in”.
We actually love hearing these comments as it presents us with a great opportunity to educate brokers on how easy these products can be with the right help and the right lender, and the outcomes are very rewarding in being able to make a measurable difference.
Our products and processes are designed the same and have no additional accreditation requirements. We use the same application form, make the same income verification methods available, and allow brokers to speak directly to our credit team at any stage of an application. We find brokers’ comments quickly change to “I can’t believe I haven’t tried this before … so many more opportunities” once they realise how easy it can be.
Brokers that focus on one product only are leaving significant revenue on the table, with commissions on non-residential products often being larger due to an often increased loan size, and with La Trobe Financial’s “no clawback” policy, an increased bottom line is often only a phone call away.
We encourage all brokers to expand their business capabilities, and the non-bank sector is a great place to start. With more accessibility to credit, easier to use products, less accreditation requirements and customisable commission structures, brokers can deal with a lender who truly values a broker’s business.
Cory Bannister is vice president and head of distribution at La Trobe Financial.
