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The non-bank lender has announced it has established an additional warehouse funding facility, providing a broader range of solutions for brokers and consumers.
Non-bank lender Wave Money has confirmed it has successfully established its third warehouse funding facility since it commenced with lending operations in November 2021 with an undisclosed “leading Australian bank”.
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Speaking to The Adviser, Wave Money managing director and founder John Flavell said: “From a lending perspective, one of the most important things in a lending business is that you actually have access to funds and capital, and getting access to an additional facility makes a massive difference to anybody’s business.
“Choice is fantastic. We’ve got increased funding capacity through having a new warehouse, but what we’ve also got now is a broader range of solutions that we can deliver to consumers and brokers which will allow us to accelerate our growth there as well.
“Brokers have the experience to navigate the complexity of the lending environment and ensure the borrower gets the solution that is in their best interest[s].
“We believe that multiple channels create conflict and complexity and detracts from what we can deliver to brokers and their clients.”
He added that the new warehouse facility is “a significant next step” in the non-bank lender’s growth plans, expanding the range of mortgage solutions it can provide.
The non-bank lender’s mortgage solutions are made available exclusively through brokers aimed at increasing a “pool of borrowers whose needs are not being met by traditional lenders”.
Those borrowers include the self-employed who need to verify incomes through alternative documentation and those who require larger loans of up to $3 million or higher loan-to-value ratios (LVRs) without mortgage insurance (up to 85 per cent for PAYG borrowers).
Mr Flavell added that 17 per cent of the Australian workforce are self-employed, small-business owners.
“It’s the fastest growing segment in terms of job creation in the entire work environment,” Mr Flavell stated.
“And so, understanding that and delivering solutions for that market is certainly where we’re very focused and in fact, the bulk of the solutions we provide for those businesses.
“Post-COVID-19, the way people work and where they work from has changed fundamentally. There are a lot of people working in different ways that some people would call “near-prime” but at Wave Money, we call that prime.”
[RELATED: Wave Money joins Loan Market panel]
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