Articles - Here is why you should serve self-employed and credit-impaired borrowers

Here is why you should serve self-employed and credit-impaired borrowers


There are plenty of good reasons to upskill and service self-employed and credit-impaired borrowers. We outline five.

As any Resimac BDM will explain, self-employed and credit-impaired borrowers can be:

  • lucrative
  • long-term
  • a great source of referrals
  • a chance to upskill; and
  • an opportunity to diversify.

Let’s look at each point in more detail


Lucrative: By virtue of being self-employed or credit-impaired, these borrowers can struggle to be approved for a home loan from banks. This means they benefit from the expertise of a skilled broker. Higher interest rates for Specialist products mean broker commissions are commensurately higher, too.

Long-term: A broker with self-employed and credit-impaired borrowers also has the opportunity to retain them for longer. While Prime borrowers may leave to chase a lower rate elsewhere, self-employed and credit-impaired borrowers may not have this level of flexibility. A good broker will chart a pathway to Prime products for self-employed and credit-impaired borrowers. This encourages the customer to remain, and gives the broker a chance to write a second loan for them.

A great source of referrals: Self-employed and credit-impaired borrowers may go to brokers because credit criteria can be challenging across the industry. If you can help these borrowers succeed, they will be exceedingly grateful, as one broker told us. Self-employed workers often share their experiences and recommend products and services specific to their circumstances. They could become champions for your business.

A chance to upskill: Learning how to cater to self-employed and credit-impaired borrowers will keep you abreast of more product types, services and subject matter affecting lending.  These may include questions as to whether a risk fee can be capped? What the credit policy criteria are when it comes to workers compensation? These are topics that could crop up with your other borrowers. Learning about lending to self-employed and credit-impaired borrowers gives you the opportunity to become better practised at debt consolidation, another loan option that can be helpful for many types of borrowers – not just self-employed and credit-impaired borrowers.

Diversify your business: Broadening the type of borrowers you serve can be sound business practice. The turbulence of the past 12 months in the mortgage market should serve as a valuable lesson on how quickly the market can change. Applications soared while interest rates were low, but when rates rose, fierce competition for the remaining Prime borrowers followed. The Resimac team quickly identified the potential opportunities within the self-employed and credit-impaired borrower space to continue business momentum and offset a declining Prime market. Brokers can do likewise.

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