Better Choice Home Loans have announced a major residential mortgage warehousing deal that will see them gain access to $250 million in extra finance.
The program has been secured via their parent company, BNK Banking Corporation, who have a partnership with Bendigo and Adelaide Bank and private equity fund Blackstone.
The upshot for brokers should be that Better Choice can live up to their name, providing a wider range of choice for the broker channel.
“What it effectively does is give us better funding capability for Better Choice through BNK,” said Executive Director Allan Savins. “Whilst we continue to originate strong growth fundamentals through BNK, this turbocharges that appetite. I sit on the BNK side, I’m the General Manger of that bank, and we can now turbocharge our originations.’
“What that means for brokers is that, effectively, we can start to have a more cutting edge product suit than what they’re had already. So it really gives us that ability to double our volume through brokers, provided our value proposition remains intact.”
“That’s the exciting thing: we can increase our volume flow for our brokers. If we want to pull various levers, whether price, policy or turnaround times, we have that capability now to ramp up the bank’s volume.”
The senior funding will be provided by Bendigo and Adelaide, with the junior portion covered by BNK and Blackstone-linked funds.
“We now have an extra $250m of capacity, so if we wish to pull the lever on originating more loans, it means that we provide more of a value proposition to brokers where they’ll get, ultimately, cheaper rates than they’re getting in the market.”
“We’re delivering a more favourable pricing point. That’s the beauty of it, we’ve got more funding firepower and can position our products where we want to position them, which ticks the box from a Best Interest Duty perspective and from a consumer perspective.”
