22 Jun 2023 Podcast: Guest – Where To Go When The Bank Says No with Sean Driscoll

In this episode, Evelyn and Maddie are joined by our Liberty Business Development Manager Sean Driscoll to delve into the world of non-conforming mortgages, exploring the options available for borrowers who don’t fit the traditional lending criteria.

We shed light on the intricacies of this often misunderstood sector, helping you understand how these non-bank lenders can be a game-changer for those in unique financial situations.

Join us as we discuss the benefits and challenges associated with non-conforming mortgages, from self-employed individuals with irregular income to borrowers with less-than-perfect credit histories. We unravel the criteria that these lenders consider and debunk common myths surrounding this type of financing.

Sean shares valuable insights, explaining the different loan options available and some heart-warming stories of clients they’ve helped in sticky situations. We highlight the importance of working with a knowledgeable mortgage broker who can navigate the non-conforming landscape and find the best solutions tailored to individual needs.

Tune in to this episode for an in-depth exploration of non-conforming lenders and discover how they can open doors to homeownership that the traditional lenders and big banks may keep closed!

Find out your next step in property finance:

You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at
https://www.everlend.com.au/

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There’s plenty more great content to come … so make sure you subscribe now on Apple Podcasts or Spotify so you don’t miss a thing.

You Have My Interest is brought to you by Everlend, a mortgage and finance broking firm built for the purpose of educating and empowering you to make informed financial decisions tailored to your wealth goals. Find out more and book in your free initial consultation at ​​https://www.everlend.com.au/

Get in touch:

Find out more about You Have My Interest at everlend.com.au/podcast and connect with us at podcast@everlend.com.au

You Have My Interest provides information and educational content relating to mortgages, finance and property. You Have My Interest‘s content is general in nature and does not take into account the individual financial, legal or tax needs or objectives of its audience members.

It is not intended as a substitute for professional advice. Listeners should seek out a licensed professional to discuss their individual financial, legal and tax requirements.

If you need mortgage or finance advice tailored to your own personal situation, contact Everlend today for a free consultation. Everlend are authorised credit representatives of Loan Market Pty Ltd, Australian Credit Licence number 390222.

Podcast produced with Apiro

Please find a Podcast summary below with the interview highlights:

Acknowledgment of Country: The podcast begins with an acknowledgment of the traditional owners of the land, paying respects to Elders past, present, and emerging.

Introduction: Evelyn and Maddie, mortgage brokers, host the episode to discuss non-conforming lenders, focusing on how they offer solutions for clients who don’t fit traditional banking criteria. The episode features Sean, a Business Development Manager (BDM) from Liberty Financial, a non-conforming lender.

Key Topics Covered:

1. Understanding Non-Conforming Lenders:

• What Are Non-Conforming Lenders? Non-conforming lenders like Liberty cater to clients who don’t meet the rigid criteria of major banks. They offer flexibility in policies and provide tailored solutions for unique financial situations.
• Stigma Reduction: Non-conforming lenders are legitimate and often a stepping stone for borrowers needing short-term assistance.

2. Client Scenarios Benefiting from Non-Conforming Lenders:

• Unique Income Types: Self-employed individuals lacking up-to-date financials or with variable income streams benefit from Liberty’s flexible verification methods, such as bank statements or BAS.
• Poor Credit Histories: Clients with defaults or financial challenges can access higher interest rate loans to rehabilitate their financial position.
• Life Events: Divorce, medical expenses, or other significant events often result in temporary financial strain. Liberty offers solutions to stabilise clients until they can refinance with traditional lenders.

3. Loan Features and Flexibility:

• Servicing Capacity: Liberty offers higher borrowing power by considering actual repayments for existing loans rather than applying a higher assessment rate.
• LMI and High LVR Loans: Liberty provides loans up to 99.9% Loan-to-Value Ratio (LVR) by capitalising the Lenders Mortgage Insurance (LMI) premium into the loan.
• Short-Term Focus: Most loans are designed as transitional solutions, allowing clients to refinance with mainstream lenders after improving their financial standing.

4. Beyond Residential Lending:

• Liberty also offers loans for commercial properties, self-managed super funds (SMSFs), and vehicles, filling niches abandoned by major banks.

5. Real-Life Success Stories:

Sean shares a story of a cancer survivor behind on mortgage repayments. Liberty refinanced her loan, stabilised her financial situation, and transitioned her to a lower interest rate within six months.

6. Market Context and Challenges:

• Rising Interest Rates: Sean highlights how Liberty helps clients maintain property ownership despite rising rates.
• Fixed Rate Expiry: Borrowers transitioning from low fixed rates may find Liberty useful if their financial position has changed or property values have dropped.
• Rental Crisis: Liberty’s solutions allow clients to avoid the uncertainties of the rental market by facilitating property ownership.

7. Advice for Property Buyers:

Sean’s key tip: “The best time to buy a house was yesterday.” He encourages buyers to explore alternative lending solutions to secure property sooner rather than later.

Closing Notes:

Evelyn and Maddie thank Sean for sharing insights on non-conforming lending and Liberty’s approach to providing solutions. They emphasise that non-traditional lenders are a vital resource for clients with unique financial situations, offering flexibility and opportunities to achieve homeownership.

Listeners are encouraged to subscribe and book a discovery call via Evelyn’s website for further guidance on finance and property.