Self-employed borrowers are often saddled with higher rates, fees and more restrictive lending policies, but one non-bank lender is trying to help with a flexible product.
This week, Better Mortgage Management released its new Flexi Ultimate Alt Doc loan, which lets self-employed borrowers access prime interest rates before they have completed the most recent year’s financials.
“There are many reasons why businesses don’t have their most recent financials finalised, but this doesn’t mean that they aren’t strong, legitimate businesses,” BMM national sales manager Murray Jones said.
Self-employed borrowers can access rates similar to what they would expect to pay if they were able to provide their last two years’ tax returns, as long as they supply two types of verification – BAS, trading statements or a letter from their accountant, Jones said.
The loan rates start from 5.39%, is available to 80% LVR, and provides borrowers with a maximum amount of $2 million.
It also lets borrowers access unlimited equity or cash out of their properties to use for personal or investment – not business – use, which has previously resulted in much higher interest rates.
“Due to green shoots in the economy, we are seeing confidence returning to small and medium enterprises,” Jones said.
“New funding has allowed BMM to push the alt doc market towards providing flexible product options with competitive pricing for this important and re-emerging market segment.”
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