One of the unnoticed and hidden risks of not dealing with mortgage brokers is the borrower has no HUB of information. See the two scenarios below.
There are many lenders in the market and they exist for different reasons, varying appetite and hence every lender doesn’t have identical pricing and policy. In the space of commercial lending for example, it’s not a commoditised solutions, whereby SME owners, property developers and sophisticated investors can easily navigate the market and go direct to a lender. Yes there may be some large-ticket borrowers who have established relationships with current bank or lender but as market changes the lending landscape changes too, resulting appetite change among banks and lenders. And it’s not unusual to for banks and lenders to have maximum Obligor exposure.
Two scenarios could play out, based on our very recent actual experience.
Borrower 1: a broker partners brought a deal to us with complete docs and info, because the other lender has changed appetite and the deadline is pressing. We managed to helped the borrower complete the funding need. Albeit hectic due to rushed deadline but at least the whole process starts immediately as relevant docs and info is 99% complete, via the broker partner.
Borrower 2: reached out via an accountant, similarly in an urgency mode, once again previous application with a bank was declined, although in the past the same landbank deal would have been easily boxes-ticked and approved. We asked for same docs and info but the applicant found it challenging even with the assistance of the accountant, as communication with previous lender was direct but ad hoc, no centralized or hub for fact finding and dataroom for docs, understandably given the borrower is not expert in lending. Undoubtedly things can delay.
The lesson here is don’t overlook the many benefits of relying on a professional who does their job many more times than yourself.
If you need more information on how to maximize value for your clients’ funding strategy, please reach out to us. We are opened for more business and have increased appetite in 2024!
N1 offers real flexibility in private lending. Reach out to our friendly team and speak direct to decision makers. We control and lend our own fund and doesn’t have restrictive policy. N1H currently manages about $140mil and funding sits in our account ready for immediate deployment.
Have a scenario?
Our friendly team can be contacted on 1300 001 118 or scenarios@n1holdings.com.au
