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In kicking off the new financial year, non-bank lender Liberty has announced a swathe of changes to its residential lending policies that include tax debt consolidation options for low-doc borrowers, updated serviceability considerations for custom applicants with alternative income sources, and more flexibility in security requirements for custom deals.
The non-bank lender has extended its debt consolidation options for the Australian Taxation Office (ATO) and state department tax debts to include custom AA low doc borrowers where the loan-to-value ratio (LVR) is below 70 per cent.
In addition, custom applicants with child support, family tax benefits, and single parenting payments as an income source will see further serviceability enhancements applied.
Furthermore, vacant land in eligible postcodes is now acceptable as sole security for custom deals where the LVR is below 70 per cent, Liberty has said.
Liberty’s chief distribution officer David Smith said the aim was “always to find new ways to help more people get [financing] with alternative solutions”.
“Liberty has always done things differently and we constantly challenge ourselves to find more ways to get to ‘yes’,” Smith said.
“We have listened to our broker business partners and are pleased to offer these enhancements to reflect the changing needs of customers.
“We pride ourselves on working closely with brokers as a true partner, and considering all the circumstances in each application.”
According to Liberty, non-bank lenders such as itself have a “greater ability to find solution where other lenders cannot” due to its flexibility to look at a client’s unique circumstances on a case-by-case basis.
Smith said: “We encourage brokers with scenarios they’re not sure how to tackle to get in touch with their Liberty BDM. If there’s a way, we’ll find it together.”
Financial results
This comes as Liberty revealed in its financial results for 1H24 an increase of 4 per cent in its overall loan book, accumulating $14 billion in financial assets.
It’s residential loan portfolio decreased from $8.3 billion in 1H23 to $7.9 billion in 1H24. This was due to “higher than trend discharges and amortisation”, according to the non-bank.
The downward trend was also evident in 2H23 that reported $8.1 billion, a $255 million drop from the previous period.
However, financial service loans with the non-bank, particularly personal loans, increased significantly, rising to $759 million from $496 million in 1H23.
The non-bank reported that its overall loan portfolio is continuing to swing toward “higher yielding secured and financial services assets”.
[RELATED: Resi loan discharges ‘higher than trend’ at Liberty]
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