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Jessica Darnrbough
Australia’s non-bank lenders have been quick to dismiss concerns that they will soon look to implement minimum volume requirements on their broker partners.
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Yesterday, The Adviser revealed that Firstfolio had announced it would charge brokers a $150 administration fee to brokers that failed to settle three loans within 12 months.
But it seems Firstfolio stands alone in its decision, as Australia’s other non-bank lenders made it very clear they would not look to introduce similar volume hurdles.
Speaking to The Adviser, Australian First Mortgage director Iain Forbes said the lender had no plans to charge its brokers an administration fee.
“We want to support our broker partners. We try to be fair by the brokers, we try to be right by the brokers, and as such, I can safely say we have no intention of slapping them with an administration fee,” Mr Forbes said.
His comments were largely echoed by Premium Capital Finance Group’s head of sales Andrew Rae, who said implementing volume hurdles would inevitably limit business opportunities for non-bank lenders.
“It is hard enough to get a deal at the moment anyway in the non-bank space, without penalising brokers for not using you for 12 months. I find it very pompous of a company like Firstfolio to introduce a fee like that,” he said.
