Login
ISCOVER
EXECUTIVE DIRECTOR Allan Savins said Better Choice had achieved its goals for the 2020-21 financial year by taking advantage of its bank-owned structure and utilising its own funding through the relationship with BNK Banking Corp.
“We have done exactly what we said we would despite the many challenges of COVID,” he said.
Mr Savins goes on to say that Better Choice, in addition to leveraging BNK’s ‘on balance sheet’ funding and growing the bank’s balance sheet by 75 per cent in FY21, has secured a $500-million funding facility through global financial institution the Goldman Sachs Group, as well as a $250-million residential warehouse program provided through Bendigo and Adelaide Bank (with junior funding provided by BNK and Blackstone Group). Better Choice will be delegated responsibility from BNK to act as the originator, servicer and special servicer for both these programs.
“Our own funding gives Better Choice greater control of pricing and product design as well as being 100 per cent accountable of our own process, rather than relying on our wholesale funders,” he said.
“In particular, the partnership with Goldman Sachs through BNK is a strong endorsement of the scale, exceptionality and value of our mortgage platform and value chain.
“At Better Choice, we aim to be completely accountable for our processes. And by having control over our own funding, we are able to compete on a far more level playing field.”
Mr Savins said Better Choice’s existing Gold Home Loan product suite is now backed by both BNK’s ‘on balance sheet’ capabilities as well as the Bendigo and Adelaide Bank warehouse facility, so funding certainty is delivered together with product enhancement capability. We have already seen the release of the Medico Loan to 90 per cent LVR with no LMI as just one example of the possibilities.
Further to that, Mr Savins said Better Choice’s brand-new Ultimate Home Loan suite (funded by Goldman Sachs) offers borrowers far more flexibility than ever. All levels of credit impairment will be considered, including recent mortgage arrears, discharged bankrupts and adverse credit situations. Furthermore, all types of PAYG income will be considered (i.e. short-term casual, PAYG contracts, probation etc) in addition to catering for the SME market for both clear and adverse credit borrowers.
“This is the type of market-leading credit appetite that specialist borrowers and brokers have been waiting for. The specialist market has morphed itself predominantly into ‘near prime’ borrowers these days, and the Ultimate Home Loan suite reminds us that a specialist borrower encompasses a much greater cross section of solutions than just that,” Mr Savins said.
Mr Savins states the mortgage market has remained strong despite the ongoing COVID disruptions and the wind back of government stimulus programs such as JobKeeper.
“With the impact from COVID on the financial services sector, more borrowers have been shifting towards specialist lending, and I expect that trend will absolutely continue into the foreseeable future,” he said.
“The flexibility of our Ultimate Home Loan range taps into a customer segment that relies on lenders having an open mind and actively looking to help them find a solution, instead of looking for a reason not to.”
“We believe every Australian should have the right to access a suitable home loan to fulfil their home ownership dreams. Better Choice lives and breathes the values a non-bank lender brings to the table in the Australian lending market. We are focused on providing a broad range of home loan solutions with competitively low interest rates to Australian borrowers.”
“Our customer service team is a leader in the industry, with our diverse product range giving borrowers access to niche solutions they won’t find anywhere else.”
JOIN THE DISCUSSION