A non-bank lender’s new low and full doc loan is designed to give borrowers with bad history “a second chance.”
’s new FlexiChoice product offers 100% offset and unlimited cash out, and is available for refinance.
In addition, the risk-based pricing model includes a step-down for good payment history.
Greg Mitchell, Homeloans’ general manager sales, told Australian Broker Online the loans would not only “open a massive amount of business” but give borrowers with a chequered past a second chance.
“Without these types of facilities, it is very restrictive. People’s employment changes, people’s jobs change.
“A prime example is: you’ve had a lot of people who may have gone bankrupt…via their own business. They’ve now gone into full-time employment, and they still have their home,” he said.
“And yet they’re tarnished with that brush if they’ve gone through any defaults or bankruptcy. They’re punished for that for a long period of time.”
“They’re good people that pay their mortgages, have good jobs and now their income is stable. The beauty of these products now is you can sit down, and you can look at the history.”
Mitchell said the broker channel was already responding “positively” to the products.
“The responses we’ve got so far from brokers have been great. As far as enquiries go, we’ve increased our enquiries by more than 30%.”