Better Choice Home Loans have launched a new 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.
If new customers apply for Gold Special and Standard Variable Investment P&I or IO Home Loan with Better Choice and also brings their Owner Occupied variable home loan, they can get 20 points knocked off their rate as a reward.
Better Choice can offer this as a result of their new finance facility with Bendigo & Adelaide Bank, who gave them access to $250 million in warehouse funding last week, as reported in Australian Broker.
“What the new funding line gives us is additional funding firepower, allows us to position our products where we want to position them and gives us more levers to pull in terms of both price and policy in terms of volume flows,” said Allan Savins, Executive Director of Better Choice Home Loans.
“We have a desire for balance in terms of volume flows, and we don’t want to just receive one particular cohort of business, such as owner-occupier for example, and we think this is a good incentive where we can pick up that O/O home loan and if they bring along their investment loan then we’ll offer a 20% discount on that.”
“That will position us clearly at the very top of the league tables for competitiveness and rates, which gives brokers more choice. We already have good pricing on O/O loans, and this offer now supports good balance where we’re looking for investors. We’ve got the ability to fund that both on the balance sheet and using the new warehouse.”
In terms of BID, this new loan can do plenty for brokers. “It helps the broker as it offers better choice as a package solution,” said Savins. “From a consumer perspective, they’re getting cutting edge pricing. The consumer wins, no doubt about it, in context of rate, and it should give the broker more comfort in recommending us because both O/O and investment are competitive.”
