Non-bank lender Better Mortgage Management (BMM) has launched a calculator to help educate brokers and borrowers about alt-doc and specialist products, as demand for alternative lending products continues to rise.
BMM designed the alt-doc and specialist loan calculator after noticing that some brokers were putting together their own Excel spreadsheets to show clients the true cost over the expected life of the loan and to help meet compliance requirements.
“Our calculator goes a few steps further and considered things like how much equity the customer may have if they hold the loan for a number of years, compared with how much they would have with a different loan for the same period of time,” BMM managing director Murray Cowan said.
“It also gives brokers the ability to compare the impact of capitalising fees versus not capitalising fees, and also examines the impacts of interest-only versus principal-and-interest.
“We are finding brokers are starting to come back to the alt-doc and specialist space,” Mr Cowan said. “Some brokers have little experience in the alt-doc space and can use the calculator to help them work out the best deal for their customers.”
Brokers can also load the details of products from other providers into the calculator.
Mr Cowan said he has noticed a gradual increase in the demand for alt-doc loans following ASIC’s positive review of the space late last year.
[Related: ASIC launches interest-only mortgage tools]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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