Non-bank group makes pitch to attract mortgage brokers

A non-bank finance group is making a pitch to mortgage brokers, hoping to double its clientele in the wake of the Royal Commission and predicted change of federal government.

Chifley Securities’ Principal Dominic Lambrinos said that its current lending to developers and landowners extends to $2 billion and it works with 3,000 brokers.

Lambrinos said it wants to double the number of brokers it works with over the next year.

“There are more than 10,000 mortgage brokers across Australia and many of them will not have a viable business or career if trail commissions are phased out,” he said.

“Shorter term lending by non-banks like Chifley Securities provide upfront commissions of up to 1 per cent, with this to rate to be paid again when the loan rolls over.

Lambrinos said the company pays commissions on loan it provides, as well as settlements in up to two weeks, incentives for referrals and training.

“Mortgage brokers can make an easy transition to commercial property lending through our training & support programs and gain another income flow, which sadly I expect will be required with the expected changes to trails,” he said.

“We are also seeing an explosion in the number of private investors entering the market, especially large and small foreign funds, which are keen to finance projects and prepared to work with Chifley Securities and it’s brokers to gain access to this asset class.

“This is creating a pipeline of loans which brokers can tap into by diversifying from their traditional mortgage base.”