Refinancing: The major opportunity for brokers in 2016.
Loan refinancing is when a borrower who you have previously brokered into a financial institution has gone, or is about to go into default. Brokers now have the opportunity to refinance these loans with non-banks such as Chifley Securities, instead of allowing the loan to be placed in the hands of receivers, where the result is almost never in favour of the borrower. The loan refinancing sector is becoming an area where the most loans are received, yet many brokers have yet to take advantage of this. The sector is virtually untapped, despite being the biggest area of growth for brokers.
Chifley Securities and its sister company Nationwide Capital specialize in refinancing loans in situations where there is ATO action and outstanding debts. This may include the threat of liquidation or situations where a receiver has been appointed with the purpose of providing the borrower with a second chance. Brokers have a responsibility to ensure that their clients are provided with the best options when they find themselves in financial trouble, and the best options will almost always include a review from Chifley Securities.
Opportunities provided by banks and non-banks
The major banks provide a number of loan refinancing opportunities for brokers in today’s private loan market. When this is coupled with the fact that there is a growing trend away from appointing receivers on defaulting loans and instead going down the route of mortgagee in possession, brokers are provided with an enormous bank of opportunities for refinancing.
Outside of these refinancing opportunities, the major banks have tightened the requirements surrounding commercial lending. However this doesn’t need to become a problem for borrowers and brokers because private lending companies like Chifley Securities provide finance to fill this gap in the market. In fact, Chifley Securities’ strategic partnerships with specialist private lenders mean that we are able to fulfill almost any loan finance requirement. In the past twelve months, Chifley Securities has provided loans using existing valuations, bridging finance for numerous commercial projects and finance approvals on the basis of valuations when they were above cost.
In the refinancing sector, Chifley Securities has refinanced property in order to remove receivers, arranged for cash payouts to pay tax and other debts and refinanced defaulting loans to provide borrowers with a second chance. 2016 is a year when brokers have the opportunity to capitalise on business finance opportunities well outside what the major banks are able to provide.
What should brokers should be doing to stay up to speed with the greater scrutiny of the finance industry?
There is a growing trend of increased regulation of brokers in the finance industry, meaning they will need to ensure that they keep abreast of the new financial instruments and remain fully compliant. The key for any broker is to ensure that they continue to get proper professional support and that training and education standards meet the tighter regulations and industry expectations. To this end, Chifley Securities is offering excellent education programs from just $550 per person for FBAA members (normally $990). These programs will count as seven hours of PDE credits with the FBAA.
We are offering 50 free courses to the first 50 brokers who register on our website and request the course at info@chifleysecurities.com.au.
Commercial Property lending in 2016
Although interest rates are expected to remain at historic lows throughout 2016, Chifley Securities expects the strong momentum in the commercial lending market to continue with the advent of more private funding entering the market to support property projects.
Unlike the residential market, we forsee no slowdown in commercial lending in 2016, a view which is backed up by our current pipeline of over $110m in work in progress and a continuing demand for our products and services. Australia continues to be an attractive destination for investors, even more so in recent times with favourable foreign exchange rates and investment returns.
To find out more about Chifley Securities or to register, visit http://chifleysecurities.com.au/