Login
ISCOVER
By: Staff Reporter
Better Mortgage Management has changed its low doc policy so borrowers without BAS statements can avoid paying higher rates.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
In another sign of increased competition in the market, the mortgage manager announced on Friday that it would relax the credit requirements on its credit power pack low doc pro-pack loan up to 60 per cent LVR, allowing all borrowers access to the lowest rate of 6.99 per cent.
Previously, low doc borrowers who could not supply BAS statements were not able to access BMM’s lowest pro-pack loan rates and higher loan amounts up to $1.5 million.
According to the company, in addition to lower rates and higher available loan amounts, lo doc borrowers will be able to access full feature home loans including vacant land and construction options and line of credit accounts.
Better Mortgage Management’s managing director Murray Cowan said with major lenders continuing to tighten their credit requirements for low doc borrowers, there were opportunities for mortgage brokers and lenders to take advantage of a traditionally strong market segment.
“Low doc borrowers are predominately self employed business people who often have strong asset positions and excellent income for servicing, making them a low risk borrower,” Mr Cowan said.
“By reviewing credit requirements, Better Mortgage Management has demonstrated that we will continue to actively write loans for self-employed borrowers and mortgage brokers can still capitalise on this market segment if they look for options beyond the major lenders.”
