The major brokerage has launched a new white label lending solution designed to enable eligible customers to enter the property market sooner.
Aussie – part of the Lendi Group – has partnered with low-deposit lender OwnHome to offer its broker network a new product that enables eligible customers to purchase a property, even if they have no deposit.
The Aussie Boost product is designed to help brokers support more customers in overcoming the deposit barrier to enter the property market sooner.
Available to owner-occupiers with a loan-to-value ratio (LVR) of between 81 and 100 per cent and investors who are buying either their first or second property (81–98 per cent LVR), the new product aims to allow customers to get onto market without paying lenders mortgage insurance (LMI).
Interest rates start from 5.28 per cent (for 85 per cent LVR) and go up to 6.30 per cent for those with 100 per cent LVR.
The product is fully integrated into the Aussie Broker Platform, allowing brokers to complete eligibility assessment, calculate potential savings, and process applications within their existing workflow.
Travis Tyler, Lendi Group’s chief product officer, stated that Aussie Boost provides an alternative for customers whose biggest barrier to entering the property market is the time needed to save for a deposit.
It is being launched as Australia’s home values rise at their fastest pace in more than two years, locking some buyers out of the market.
OwnHome co-founder Tim Harley commented that the product is designed to support customers who demonstrate capacity to afford mortgage repayments, but are unable to meet large deposit requirements.
“We’re thrilled to partner with Aussie to bring this to life for brokers. Aussie Boost is designed to help families who can afford the repayments but are locked out by huge deposit requirements. Together OwnHome and Aussie are giving brokers the ability to say ‘yes’ to more clients and get more Australians into homes they love sooner,” he said.
Initial reports from Aussie brokers who were piloting the product suggest that it enabled clients to save thousands in upfront costs and repayments and bring forward the time to purchase.
The move is the latest white label partnership for Aussie, following the white label partnership with Bridgit earlier this year.
OwnHome has several other partnership agreements in place with aggregators, including Connective and Finsure.
[Related: Aussie launches white label bridging loan]