Non-bank lender Better Choice has removed clawbacks across its commercial loan suites to assist brokers wanting to diversify into commercial lending.
Better Choice director Allan Savins (pictured above) said the changes were designed to make it easier for brokers to write commercial business.
“We have announced some significant changes to our commercial range which will allow brokers to offer innovative lending solutions to their small and medium enterprise (SME) customers,” Savins said.
“One of the biggest changes is removing all clawbacks on the broker commissions for commercial products. This is an important step to make it easier for brokers to diversify into commercial lending.”
Savins said Better Choice would also waive application and risk fees on any commercial loan above $300,000 up to $2 million, until further notice.
“Other steps we are putting in place to help brokers write commercial business include eliminating yearly reviews on certain types of commercial loans, which can cost consumers extra fees each year,” he said.
“Brokers who have a residential accreditation with Better Choice can also write commercial as well. One accreditation covers them for both residential and commercial lending.”
The move follows a shift in the market towards the removal of clawback and generally more favourable products across the mortgage and commercial space.
Non-bank lender Pepper Money has removed clawbacks on all commercial mortgage loans in February while Mortgage Ezy removed abolished it on 80% of their commercial products in July.
Rate Money also announced in July that they would remove clawbacks on full-doc and low-doc owner-occupier and investor loans.
However, it’s not all smooth sailing for brokers, with Commonwealth Bank (CBA) extending the length of its clawback period in July, a move that generated much criticism.
To complement the move, Better Choice has also appointed a dedicated commercial business development manager, with Shay Lena becoming NSW state manager - commercial strategic partnerships.
“Shay has more than 25 years’ experience working directly in the third party, non-major finance industry, and his number one focus is to be a genuine business partner for all brokers writing commercial loans, helping both experienced and new-to-commercial loan writers get the deal done,” Savins said.
“He has a passion for credit knowledge and his areas of expertise cover multiple lending segments, specialising in self-employed, commercial, SMSF, residential and also, alternate lending markets.”
Lena has previously held senior roles with AMP and Suncorp.
Better Choice’s commercial suite specialises in alt doc loans as well as products for commercial self-managed superannuation funds (SMSF) and lease docs. All at competitive rates with flexible trail options.
The announcement to remove clawbacks on its commercial loans follows Better Choice bolstering its broker and lending processes over the past few years.
In 2021, the non-bank lender launched a product that offers brokers the chance to take advantage of their new warehousing facility by offering a bespoke rate that rewards those who combine their home loan and investment loans.
Last year Better Choice also expanded its SME offering.
What do you think of Better Choice’s removal of clawbacks? Comment below.
