11/11/2024
As non-bank lending surges, FINSTREET empowers brokers with tailored solutions that meet the evolving needs of today’s borrowers.
MORTGAGE MANAGERS like FINSTREET are gaining popularity among brokers and borrowers alike due to their specialised expertise and flexible offerings. Unlike traditional lenders, mortgage managers focus on niche markets and provide tailored solutions that meet specific borrower needs. They serve as intermediaries, bridging the gap between borrowers and specialist lenders, thereby expanding the choice available to brokers. A common misconception is that non-bank lenders and mortgage managers serve the same role; however, they each make unique contributions to the lending landscape. Non-bank lenders primarily provide capital, while mortgage managers leverage that capital to offer a wider array of lending solutions tailored to the specific needs of brokers and borrowers. Interestingly, some non-bank lenders choose to distribute their products exclusively through mortgage managers. This strategy allows them to focus on creating bespoke loan products and ensures that their offerings are managed by experts like FINSTREET who can provide a personalised service to borrowers. This partnership enhances the broker model, allowing brokers to focus more on advisory services and relationship management while mortgage managers handle the intricacies of securing and managing lending products.
FINSTREET’s rise: Innovating solutions in the non-bank lending arena
Founded by Darren Liu, FINSTREET has quickly risen to prominence as a leading mortgage manager, transforming how brokers meet their clients’ lending needs. Drawing from over 15 years of experience, Liu identified a significant gap in the mortgage market: borrowers increasingly require flexible, customised solutions that traditional lenders often fail to provide. “Throughout my career, I noticed that customer needs have evolved, especially in today’s dynamic financial landscape,” says Liu, executive director of FINSTREET. “Non-bank lenders offer the kind of tailored solutions that brokers and their clients need to navigate real-world challenges.”
This insight led to the establishment of FINSTREET, dedicated to linking brokers with the most competitive non-bank products available – delivering options often overlooked by banks.
Why brokers are choosing FINSTREET
“FINSTREET operates in areas where banks often hesitate,” Liu says. “We offer solutions that cater to niche borrower profiles, including the self-employed, SMSF borrowers, NDIS participants, expats and those needing alternative documentation.” This flexibility is essential as borrowers face intricate financial situations that may not fit the rigid criteria of banks. Today, brokers control over 70% of the mortgage distribution market, making their role essential in connecting borrowers with appropriate lending options.
FINSTREET’s close collaboration with brokers is integral to its success. “Our mission as a mortgage manager is to assist brokers in finding solutions, no matter how complex the scenario,” Liu explains. “We handle the heavy lifting – product selection, policy understanding and post-approval services – allowing brokers to concentrate on delivering results for their clients.” Reflecting on FINSTREET’s accomplishments in the calendar year 2024, Liu highlights that as of November this year, the company exceeded 140% of its application and settlement volume relative to the entirety of 2023. He says, “These results are reassuring and affirm that we are on the right path and adding value to our broker community.”
In addition, Liu notes that many Australian credit licence holders are reaching out to FINSTREET for collaboration, seeking the company’s expertise in navigating complex lending scenarios. This growing interest underscores the trust and reputation FINSTREET has cultivated within the industry.
Beyond brokers, FINSTREET has established a strong network of introducers, including accountants and financial planners, all of whom share values that are aligned with the company’s. With a commitment to broker education and service excellence, FINSTREET has built a network of over 3,000 brokers nationwide. This partnership-focused approach positions the company as a prominent player in the non-bank lending arena.
“As a mortgage manager, FINSTREET takes on the bulk of the heavy lifting, giving our brokers back valuable time to focus on what’s most important: their business and customers”
Darren Liu, FINSTREET
Driving innovation in a competitive market
FINSTREET’s strategy extends beyond simply offering a wide range of products; it emphasises pioneering solutions that yield better outcomes for both borrowers and brokers. In a rapidly changing market, innovation is key to maintaining competitiveness, and FINSTREET has excelled in this regard through several initiatives.
One significant innovation is its ‘no-clawback’ policy across a significant number of its products, designed to mitigate financial risks for brokers and safeguard their investments of time and effort in customer support. Clawbacks have long been a source of frustration for brokers, especially when clients refinance or pay off loans early. By eliminating these clawbacks, FINSTREET reduces financial pressure on brokers, enabling them to cultivate long-term client relationships without the worry of commission losses.
In addition to its extensive range of lending solutions, FINSTREET features three private lending solutions and four exclusive products available solely through the mortgage manager channel. The underlying principle is clear: when brokers can’t secure a deal through traditional banks, they can turn to FINSTREET. If white-label or non-bank options fall short, the mortgage management team will explore private lending alternatives.
Recent insights from FINSTREET indicate a significant surge in demand for Low Doc Prime loans, particularly from self-employed individuals and borrowers with complex financial circumstances seeking more flexible lending options. Additionally, there has been a notable increase in construction and commercial loans, especially for large-scale projects. The team is also observing a rise in volume from non-residents, with Darren Liu noting, “Non-residents are increasingly refinancing due to higher interest rates and the simplicity of our innovative Easy-Refi product, which requires just 12 months of bank statements.”
While traditional lenders have become less accommodating of non-residents who are facing funding challenges, the team at FINSTREET is well equipped to guide brokers through tailored solutions that meet the needs of this growing market.
FINSTREET’s ongoing investment in the broker community appears to be paying off, with its regular webinar series gaining significant traction among brokers and finance professionals. Held fortnightly, these sessions focus on helping brokers navigate high-demand lending segments, and they have seen consistently strong attendance. The level of engagement suggests a growing appetite for education on specialised lending solutions as brokers seek to sharpen their expertise. It’s a trend that reflects both the importance of continuous learning in the industry and FINSTREET’s role in fostering these conversations.
FINSTREET’s commitment to innovation, service excellence and the finance community has been recognised within the industry, as evidenced by multiple accolades, including its most recent nominations for Best Mortgage Manager and Best Industry Service at the 2024 Australian Mortgage Awards in October.
“As a mortgage manager, FINSTREET takes on the bulk of the heavy lifting, giving our brokers back valuable time to focus on what’s most important: their business and customers”
Darren Liu, FINSTREET
Preparing for a dynamic future
As the financial landscape continues to evolve, FINSTREET stands at the forefront, committed to empowering brokers with the tools, education and support essential for success in a dynamic market. The increasing influence of non-bank lenders underscores the critical role that mortgage managers like FINSTREET will play in the future of lending. With their ability to offer tailored solutions, they are well positioned to lead the charge in an industry that values flexibility, innovation and collaboration.
The current economic climate, characterised by rate uncertainty, stricter lending standards and heightened regulatory scrutiny, elevates the significance of non-bank solutions. By leveraging the innovative offerings from FINSTREET, brokers can effectively navigate these challenges and provide superior service to their clients, gaining a decisive competitive advantage.
As we look ahead, the importance of mortgage managers will only grow, solidifying their essential role in shaping the future of the mortgage industry.
