Mortgage Choice is partnering up with Australian non-bank lender Skip to help more Australians get into the property market.
The two companies are now offering a new white label product — Mortgage Choice Skip — that will be available under the Mortgage Choice brand. The product is designed to help Australians with smaller deposits get into the market by allowing them to borrow up to 98% of the loan-to-value ratio (LVR), and with fees that are lower than lenders mortgage insurance (LMI). The duo also claims that the product offers up to 30% more purchasing power, potentially allowing buyers to consider properties that would otherwise be out of reach.
"The combination of elevated property prices and high cost of living means that many hopeful buyers are needing to put their purchase plans on hold, or face having to pay high LMI rates to buy their first, or next property," said Mortgage Choice Chief Executive Officer Anthony Waldron. "In this market, there are borrowers, particularly upgraders, who have no trouble servicing a loan, but have limited options based on their deposit size.
"Whether it’s first homebuyers without the help of the 'Bank of Mum and Dad,' buyers squeezed out of government scheme price caps, or upgraders looking to take their next step, Mortgage Choice Skip gives our network the ability to help borrowers get a 'yes' sooner," he continued.
Mortgage Choice Skip is rolling out nationally. Skip, which rebranded from Sucasa in February of this year, has deployed business development managers across New South Wales, Victoria, Queensland, South Australia and Western Australia for the launch.
"For over three decades, Mortgage Choice brokers around Australia have championed homeownership for Australian families," said Skip Co-founder Mario Emmanuel. "They know that when a borrower has strong earning capacity and a clean credit profile, the size of their deposit shouldn’t stand between them and homeownership. We’re excited to partner with them and bring Mortgage Choice Skip to market, allowing brokers to unlock homeownership for more hardworking Aussies.”
Sydney-based Skip was founded by Emmanuel, alongside Adam Trouncer and Marian Emmanuel, in 2022. The firm works with clients nationally, offering residential home loans for owner-occupiers, as well as investor loans and refinancing.
But Skip made its mark on Australia's lending landscape by offering a 2% deposit loan with no LMI, which quickly resulted in triple-digit growth across both its direct and broker-led channels.
At the heart of the proposition was a challenge to Australia's traditional 20% deposit benchmark, which Skip believes has become a significant barrier for Australians trying to get a foot on the property ladder.
"High deposit approaches have created a chasm between owners and renters and defined homeownership in this country for the worse," Trouncer told Australian Broker earlier this year. "And it will only get worse if this mythical 20% mindset remains the status quo advice."
