Home Loans with Australian-Finance
A division of Adelaide Finance Agency Pty Ltd
Non traditional Home Loan Lenders - Industry History.
Back in 1980 the Institutions – Banks, Building Societies, were the Loan industry. Through their Staff and Branch network, they were pretty much the only source of funds for home borrowers.
There existed a small second tier of Fund providers, and during this period Australian Finance (wholly owned by Adelaide Finance Agency), supplied referrals into both systems – and were paid by the borrower.
For the next 10 years to 1990, the Banks decided to outsource a lot of the work involved in writing Loans by establishing specific Finance Originators, like – AGC – ESANDA – Custom Credit. These organisations were still owned by the Banks.
Australian Finance provided referrals into both the Originator system and the still prevalent Bank Network system, as well as the small private sector – still being paid by the borrower.
From 1990 onwards, with the de-regulation of the industry, the banks sacked most of their branch sales teams, and closed their Finance Companies.
The Originators then became the Home Loan Consultants – Club Finance, Assured, BLHLs etc.
As the Consultant Industry grew, some Banks then established Wholesale Fund providers like Liberty, Interstar etc, thus providing a second tier of funds for the Consultants.
Australian Finance continue to source funds from Banks, Wholesale Providers and still access some private funds.
Australian Finance are as close to an ‘independent’ broker, in that they still get paid by the client, and any rebates from the funds provider are passed to the client.
Australian Finance are one of very few brokers operating in this way – it is still tricky to claim that they are independent, however they get very close.