What Is a Mortgage Manager?
A mortgage manager, or non-bank lender, traditionally sources its funds from wholesale funders who do not have a retail presence. Collective Lending holds agreements with wholesale funders who have multiple warehouse funding agreements with domestic and global investment banks for residential and commercial lending products.
Mortgage Managers are specialists when it comes to mortgages and are often able to offer more competitive options including market leading service and interest rates to their clients, as they generally specialise in residential and commercial lending and don’t have the high overheads of large branch networks like the banks do.
What is the difference between a Mortgage Manager and a Broker?
Is My Money Safe?
The Australian Government guarantees customer deposits up to $250,000 with Authorised Deposit-Taking Institutions (ADIs) under the Financial Claims Scheme (FCS).
The FCS was born out of the Global Financial Crisis (GFC) to boost confidence in the banking system and the security of people’s money.
Redraw facilities are not covered by the government guarantee regardless if the lender is an ADI or not, however any extra mortgage repayments you have deposited into your redraw facility would be used to reduce your loan balance and the amount you owe the lender.
Offset accounts are covered by the governments $250,000 guarantee.
It’s also important to note that in the case of joint bank accounts, the $250,000 guarantee individually applies to each account holder.
What If My Mortgage Manager Is No Longer Operating?
If your mortgage manager or the funder that the mortgage manager used to obtain your loan is no longer operational, you would most likely not even notice the change, the current loan would be transferred to another lender or servicer who would continue to service the loan and look after your ongoing requirements.
The original loan agreement you signed when taking out the loan outlines all of the fees and charges that apply whilst you have that loan in place and as such this is regulated and cannot be altered without complying with all of the necessary Australian legislation that protects the consumers. The new lender can’t request that you pay your mortgage in full.
Are Mortgage Managers Safe?
Mortgage managers are bound by the same strict regulations as any major bank. While we may not be listed as an ADI we are still governed by Australian Securities and Investments Commission (ASIC) and bound by the National Consumer Credit Protection Act (NCCP) and Australian consumer law.
Also in Australia, all legitimate banks and lenders must hold an Australian Credit License (ACL) from ASIC, this ensures they are complying with all industry legislations that affect mortgage consumers. Collective Lending holds its own ACL which you can find at the bottom of this page.
Collective Lending also hold a membership with the Mortgage & Finance Association of Australia (MFAA). This industry body assist and ensure brokers, lenders and mortgage managers are across industry changes and any product advancements which are likely to benefit their clients.
We also hold a membership with the Australian Financial Complaints Authority (AFCA), an external dispute resolution scheme that considers and resolves complaints from consumers and small businesses about financial products or services. This is just another way we are providing our clients with peace of mind that should they have a complaint, it will be handled in a professional and fair manner.
It’s a common misconception that due to the size of a mortgage management company compared to the bigger banks, they are more risky or unsafe to provide you with a mortgage and are likely to react with interest rate changes during unstable economic times.
Recent history suggests this is generally not the case with many mortgage managers currently offering far more competitive rates than the bigger banks, and will apply rate decreases and increases in line with the Reserve Bank of Australia’s decisions.
ACL Holder
Collective Lending holds its own Australian Credit Licence (ACL), ensuring we comply with all industry legislations that affect mortgage consumers.
MFAA Member
Collective Lending hold a membership with the Mortgage & Finance Association of Australia (MFAA). Ensuring we are across industry changes and any product advancements which are likely to benefit our clients.
AFCA Member
Collective Lending hold a membership with the Australian Financial Complaints Authority (AFCA), providing our clients with the peace of mind that their complaints will be handled in a professional and fair manner.
Our Products and Services
If you would like to know more about the products we have to offer, download our latest Product Niche flyer or give the team a call today!
