In welcome news to brokers and their customers in the current high-interest-rate environment, non-bank Better Choice has upgraded its Ultimate Product Range, lowering the assessment buffer for dollar-for-dollar refinances to 1%.
Better Choice was the first lender to execute the 1% assessment buffer on dollar-for-dollar refinancing in the specialist loan space, in a move Allan Savins (pictured above), director at Better Choice, said will “enable customers languishing in a mortgage prison to escape.”
“We believe this will help those customers who are credit impaired on high interest specialist loans, as well as those borrowers on high interest alt doc loans and borrowers on high interest private loans,” Savins said.
“For all other transactions, including purchases, refinance with cash out and refinances with debt consolidation, a reduced buffer of 2% will be applied, allowing more borrowing capacity including cash out. It was previously 3%.”
The Better Choice leader said the lender has also raised loan sizes to $1.75 million for a single security, from a limit of $1.5m, and $2m for multiple securities, from a limit of $1.75m, at an LVR of 80%.
“We have also added another 2,000 eligible suburbs across the Ultimate Range,” Savins said. “With our loan services team leading the industry, and our Ultimate Range product range now offering a significantly reduced assessment rate, we are confident that brokers will continue to choose Better Choice for their client’s needs, particularly those customers requiring extra support.”
This latest move from Better Choice to help brokers refinance customers with serviceability issues followed changes that were designed to make it easier for brokers to write commercial loans. In August, Better Choice announced that it has removed clawbacks across its commercial loan suites to assist brokers wanting to diversify into commercial lending.
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