Better Choice advances on underserviced market segment

by Madison Utley11 Jun 2020

A non-bank has launched a new mortgage product for non-residents, a move it has attributed to the “many other lenders” who have been withdrawing from that segment of the home loan market.

Better Choice has dubbed its new product the ‘Options Non-Resident Loan’.

According to executive director Allan Savins, the group is “keen to provide lending solutions” for the thousands of Australian expats, foreign nationals and temporary residents who have decided to buy a home or investment property in Australia.

“This is in response to what is now a very underserviced segment of the market. A number of lenders have pulled out of this market and we want to plug the gap,” Savins explained.

“The good news for non-resident borrowers is there are lenders offering similar home loan features and interest rates as they do for resident borrowers.”

The maximum amount which can be borrowed with the new offering is $1.5m, with a maximum LVR of 70%. The loan can be used for purchases, refinancing and cash out.

The lender also yesterday announced a specialist lending promotion of $1,000 cash back, paired with a series of fee waivers, valid with its platinum near prime, specialist and specialist plus products.

“Further, we are waiving the $550 application fee and reimbursing one standard valuation fee up to $286 on these products,” Savins added.

“This applies to all settled loans for applications received from Wednesday, June 3, 2020, until Friday, July 31, 2020. Full Doc and Alt Doc is accepted and both clear and credit impaired borrowers considered.”