Non-bank trims rates by 30bps

by Julia Corderoy03 Jul 2015
Better Mortgage Management has announced a 30 basis point rate drop across its range of alt-doc home loans.

This offer will see the mortgage manager’s Flexi Ultimate alt doc loan allow self-employed borrowers to access rates starting from 4.74%, with no risk fee or LMI up to 70% LVR.

According to the managing director of Better Mortgage Management, Murray Cowan, this new rate reduction is narrowing the gap between alt doc or specialist loans and prime loans, and allowing brokers who had stayed away from this sector re-enter the market and assist more customers.

“The 70% LVR band, with a rate of 5.09% coupled with no risk fee or LMI has been particularly popular, saving customers thousands of dollars in fees, and with a great rate compared to other similar products,” he said.

According to Murray, borrowers also have access to cash out options up to 80% LVR and have the option to choose any two of the following three options for serviceability: six months business bank statements, six months business activity statements, or provide an accountants letter.

The mortgage manager also points out that recent credit policy changes have assisted more customers to qualify for the better products at lower rates.  For borrowers that may not qualify for the Flexi Ultimate or need flexible underwriting policies, the next level of products have also improved markedly of recent times.  

“With the RBA rate change in May some rates have been reduced by 0.80%,” Cowan said.

“Now is an ideal time for brokers to review their existing customer base. Customers could benefit by refinancing out of an older or more costly private lender, alt doc or specialist loan to the new facilities available via BMM. 

“If the property has gone up in value then customers may now have lower LVRs, and could potentially save substantially on rates and fees.”

These reductions will be available until August 21.