The mortgage lender, part of the BNK Group, has launched a new Platinum Prime home loan offering, which has a loan-to-value ratio (LVR) of 95 per cent, plus capped lenders mortgage insurance (LMI) premiums (to a make a maximum LVR of 98 per cent).
The loan product targets those with a minimal deposit or those who do not have 5 per cent in genuine savings. For example, the required contribution may be by way of a gift, a First Home Owners Grant, or asset sale.
The product is being made available to both self-employed and PAYG customers and comes with a 100 per cent offset account.
Speaking of the new offering, Better Choice executive director Allan Savins said the new Platinum Prime home loan package has been formulated for first home buyers who are “struggling to save enough of a deposit” to enter the property market and does not come with any monthly or annual fees.
“Better Choice is delighted to offer a new home loan product that takes the stress out of saving to buy a new home and provides the next generation of home owners with a gateway to the property ladder,” Mr Savins said.
According to Mr Savins, recent studies have shown approximately 70 per cent of young adults aspire to achieve home ownership; however, that goal has become more difficult under the tighter lending regime adopted by the major banks.
“Better Choice is looking to open the doors to a better future for the next generation of home owners,” he said.
“Better Choice is able to offer nine funding lines, which gives us the opportunity to provide a significantly diverse range of solutions to our introducers,” Mr Savins concluded.
The announcement comes after the release of Better Choice’s FY19 results, which showed that the lender’s mortgage settlements increased by 49.9 per cent year-on-year to $578 million.
Mr Savins attributed the growth in mortgage settlements to “strong funding partnerships across the prime, near-prime and specialist sectors”, as well as Better Choice’s relationship with BNK Banking Corp, the entity formed following the merger of finance aggregator Finsure and Western Australian bank Goldfields Money.
“[BNK has] been able to provide funding for underserviced niches such as expat loans and broker trail book loans, as well as providing extremely competitive rates for other sectors such as investor loans,” Mr Savins said at the time.
Hannah Dowling is a journalist for mortgage business, the leading source of news, opinion and strategy for professionals working in the mortgage industry.
Prior to joining the team at Mortgage Business, Hannah worked as a content producer for a podcast catering to property investors. She also spent 6 years working in the real estate sector at a local agency.
Hannah graduated from Macquarie University with a Bachelor of Media and Journalism.