Better Choice Home Loans is to pivot from mortgage management to non-bank lending on the back of a huge $500m investment from global finance giant Goldman Sachs.
The residential mortgage facility will see brokers given access to unprecedented volumes at Better Choice, and the chance to access a much wider range of products than previously available.
It is the second major increase in funding that Better Choice has received in recent months: back in May, it announced a $250m warehousing from Bendigo & Adelaide Bank.
“It’s the step change that we’ve been looking for,” said Better Choice executive director Allan Savins. “It continues the trajectory that we’ve been working on.”
“We’ve been talking to the market for some time now and wanting to change our business model from a mortgage management model to a non-bank lending model, and control our destiny and outcomes. This is just one of those strategies coming to play.”
“Of the back of the $250m warehouse programme that was provided by Bendigo & Adelaide Bnk in May, this continues that trajectory. It gives us a really wide shop front of solutions: prime right through to near-prime and specialist borrowers.”
“We’ve got a good shop front for our brokers, and importantly, we’re holding the pen. We’re able to decision those loans and control our outcomes.”
“That’s really exciting for us and in what we’ve managed to construct in terms of product design and range, the Goldman Sachs program, we’ve got something compelling that will gravitate with brokers.”
The potential for huge growth in volumes from the broker channel is now in place.
“For solutions is the key. Let the broker maximise their own leads. Rather than potentially turning a client away because they can’t find a solution, this gives them that wider shop front where they can find that solution.”
“Incrementally, it gives them the opportunity to grow their own revenues, while writing more customers and building customers for life.”