23 August 2012

No changes to commissions at La Trobe Financial

Over the last few weeks we once again see comments in the industry media in regard to likely commission changes and while we can’t speak for other financial institutions we can take this opportunity to ensure our business partners that we are making no changes to our commission structures.

"That is no clawbacks on upfront commissions, full trail payable from the start of the loan and no volume hurdles".

We remain committed to our business partners and with the ever increasing professionalism of the broker channel it would seem that by cutting commissions and placing higher qualifying criteria on brokers goes against the best interests of the end consumer and it’s not on the agenda for us.

Deals of the week

We continue to offer products that are available to some of your customers who may have been declined by the larger financial institutions because they fail a credit score or have encountered some minor default in the past both for residential and commercial securities.

Our Full Doc and Low Doc products are specifically designed to accommodate these customers and we continue to see an increase in the number of loans that are being placed with us for these very reasons.

With loans available to 80% LVR and a maximum of two life events relating to poor credit history your clients can consolidate their debts, access their equity, purchase their own home or purchase investment properties.

Below you will find two case studies detailing loans we have settled recently, which provided satisfactory outcomes for the consumer. Maybe you are looking to place something similar now:

Case Study 1

The applicants were self-employed in the hospitality industry, meeting their monthly commitments on their mortgage and credit cards, however the high interest rates on the credit cards meant they had little money left each month for other incidental expenses. Subsequently, when their hot water service broke down something had to give and they missed their June repayment.

We were able to utilise the equity they had built up in their home to consolidate their credit cards, providing them with one, lower and much easier to manage monthly repayment. Restoring comfort to their financial situation.

Result: Loan approved under our Express Residential loan product.

Residential Refinance of property in Chatswood NSW – Lite Doc
LVR 80%
Purpose Refinance Home Loan and pay out Credit cards (2)
Interest Rate 8.65% Variable
Credit impairment 1 missed payment in June 2012
Loan Amount $780,000.00
Term 30 years
Application fee 1.25% with no LMI or Risk Fee
Serviceability Lite doc (Accountants Letter and Self Declaration)
Broker commission Upfront - $3,900 (0.50%) with no claw back risk
Ongoing trail - 0.25% p.a. paid monthly

Case Study 2

Applicant was looking to invest in shares and was looking to utilise the equity in their commercial shop to provide the investment money.

The applicant was a self-employed salesperson looking for a lite-doc loan to 70% of the property’s value.

Result: Loan approved under our Equity Express Commercial loan product.

Commercial Cash out on a shop in Kew VIC – Lite Doc
LVR 70%
Purpose Cash out required to buy shares
Interest Rate 9.00% Variable
Credit impairment Nil
Loan Amount $600,000.00
Term 5 years I/O
Application fee 1.25% with no LMI or Risk Fee
Serviceability Lite doc (Accountants Letter and Self Declaration)
Broker commission Upfront - $3,000 (0.50%) with no claw back risk
Ongoing trail - 0.25% p.a. paid monthly

We believe that we are a serious alternative to the banks, if you have any similar scenarios on your desk that you are having difficulty placing give us a call.

The case studies above were just two examples of the many instances we have helped brokers place their loans in the past fortnight; we have plenty of other flexible products available for a wide variety of purposes, so do what hundreds of Brokers do and contact your dedicated BDM, or call our experienced credit team direct now on 1800 707 707 to see if we can help.

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Best regards

Craig Robertson

Your "lender of first choice"


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Craig Robertson
Joint Head of
Asset Origination

t  0447 599 664
e  crobertson@latrobefinancial.com.au

Steve Lawrence
Joint Head of Asset Origination
03 8610 2807
Cory Bannister
Joint Head of Asset Origination
0403 361 026
Daryl Hill
National Relationship Manager
0408 566 524
0408 566 518
0409 435 559
0421 029 691
0421 029 687
Eren Myers
0409 419 039
BDM - Fund
Darlene Musgrove
03 5177 1670
Andrew Mercer
03 5177 1652
Luke Jones
03 8610 2816
Linda Gorski
03 8610 2817
Phil Wilson
Asset Retention
03 5177 1656
Jimmy Mc Grath
Credit Analyst
03 5177 1660
Katie Paulet
Credit Analyst
03 5177 1718
Melissa Greenwood
Credit Analyst
03 5177 1798
David Ladd
Credit Analyst
03 5177 1770

La Trobe is one of Australia's leading independent specialist mortgage Financiers. Its business includes residential mortgages, commercial mortgages, and investment services operating one of Australia's largest Mortgage Funds under AFSL 222213. It employs over 145 staff and has raised over AUD$10Billion to assist over 100,000 customers since inception in 1952.

Copyright 2012 La Trobe Financial. All rights reserved. No portion of this may be reproduced, copied, or in any way reused without written permission from La Trobe Financial. Disclaimer

Please Note: This publication is for accredited broker use only and is not for distribution to consumers.

^All loan applications are fully assessed to ensure the loan is not unsuitable and that we meet our responsible lending obligations in accordance with our usual underwriting requirements. All features and interest rates are current as at the date of publication. Conditions, fees and charges apply. This message, together with the La Trobe Financial website (www.latrobefinancial.com.au) and all its contents have been prepared for general information only and should not be taken as legal or financial advice, and as such the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the La Trobe website. La Trobe Financial Asset Management Limited ABN: 27 007 332 363 and AFSL No: 222213 is the issuer and manager of the La Trobe Australian Mortgage Fund. It is important for you to read the Product Disclosure Statement for the Fund before you make any investment decision. You can get a copy of the PDS by calling 1800 818 818. You should consider carefully whether or not investing in the Fund is appropriate for you. The rates of return from the Fund are not guaranteed and are determined by future revenue of the Fund, and may achieve lower than expected returns. Investors risk losing some or all of their principal investment.

La Trobe Financial Services Pty Limited - Australian Credit Licence Number: 392385
La Trobe Financial Asset Management Limited - Australian Credit Licence Number: 222213