One mortgage manager has removed its risk fee to help credit-impaired clients enter the market.
The policy change by Loan Ave applies to its Ultra products.
Loan Ave managing director Paul Collins said risk fees impact greatly on borrowers.
“We understand that for many borrowers in the non-conforming space, interest rate isn’t the only determining factor in the decision-making process,” he said.
“Risk fees can be significant, and in many cases can limit the funds available for purchase.”
Marketing manager Michelle Collins said the new offer would help Loan Ave deepen its relationship with brokers and position itself as a true alternative to the banks.
Lenders told The Adviser earlier this month that they were feeling the pressure of competition due to low interest rates and a strong housing market.
