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The Adviser talks to Sintex's general manager, Cathy Dimarchos to discuss the impact of APRA's investor lender changes on the non-bank lenders
Q1. Has APRA’s curbing of investor lending come as a surprise?
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No. The recent address of the increasing investor market has simply identified what we already knew. The banks were so aggressive in their home loan campaign that lending practices simply needed to be brought in line with the way that the non-banks practice. The reality is that this is about responsible lending and those who have been sensible in their approach have made few changes. The key here is to not have all eggs in one basket. When you don’t spread your business across di fferent lenders and have a good balance extending to nonbanks (not owned by the banks), you have more choice and become a better and well-versed
broker.
Q2. How can brokers improve their own businesses by using non-bank lenders?
Brokers that have the breadth of the non-bank sector as part of their lending options will never be trapped. The service is by far superior and more transparent. The olive branch is always extended to assist whether it is through the credit team or the BDM.
Q3. Who’s funding the non-banks and how is this a positive?
The non-banks are mostly funded by the banks through warehouse or securitisation programs, with some private investors at various levels. Most people are not aware of this (therefore we are very secure). The scare tactics used by the banks during and post-GFC about how stable we are must really be put to rest.
Q4. How do you make it easy for brokers and borrowers to deal with you?
You can simply submit one application to accommodate for all borrowings. It can’t get any easier than that. Sintex o ffers a range of products to accommodate all borrowers, from commercial loans to home loans and SMSFs for both.
Q5. Are bank lenders playing a role in fuelling the perception that non-banks are ‘just’ lenders of last resort?
Perhaps. This is a frightening thought if it is indeed the perception of brokers. In most cases the non-banks compete head-to-head with the banks and their guidelines are well within the responsible lending guidelines as we have trust parameters and the other influencing factors that are under constant review. Having been in the industry for approximately 30 years, I can assure you that the non-banks are not lenders of last resort and this stigma needs to be removed by the banking industry.
