Better Choice makes interest rate cuts

Better Choice Home Loans has reduced interest rates across many of its Prime, Alt Doc, and specialist products by more than 1 per cent.

The changes will be effective for any loan application submitted since 1 January 2021.

The mortgage lender has reduced the Better Choice Platinum Prime Variable principal and interest home loan by 1.13 per cent to 3.59 per cent, with a loan-to-value ratio (LVR) of 95 per cent, and a maximum of 98 per cent.

According to Better Choice executive director Allan Savins, interest rates on other products have been reduced by between 0.3 per cent and 1 per cent, and would suit borrowers “who often do not fit the mainstream lending guidelines to obtain finance”.

“These out-of-cycle rate reductions we are able to offer as we celebrate the start of a new year are an indication of Better Choice’s ongoing commitment to provide value to the broker channel,” Mr Savins.

Mr Savins said that the rate reductions have followed the lender’s adoption of NextGen.net’s compliance technology in ApplyOnline.

“The loan application process is far more digitalised and integrated within the ApplyOnline platform, cutting down on a significant amount of manual paperwork for brokers,” he said.

Mr Savins indicated that the lender would implement further enhancements in the coming months, including the ability for more forms to be able to be “dynamically pre-filled”.

“We want the process to be much simpler for brokers as we look to set a new benchmark for service in the industry.”

The lender’s rate cut announcement has followed several lenders (including major and non-major banks) cutting rates in 2020 following the Reserve Bank of Australia’s decision to cut the official cash rate to a new record low of 0.10 per cent.

[Related: Non-major expects buying ‘frenzy’ in early 2021]

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.