Better Choice Home Loans has announced the launch of a new mortgage product for non-residents wishing to purchase a property in Australia.
The new product, named the “options non-resident loan” was launched in response to other lenders withdrawing from this sector of the home loan market, according to Better Choice executive director Allan Savins.
The new product will provide housing finance of up to $1.5 million for borrowers with a maximum loan-to-value ratio of 75 per cent.
Non-resident investors will have the choice of a variable rate, or a fixed term rate for up to three years, with options to pay principal and interest or interest only.
The loan can be used for purchases, refinancing or cash out, according to Better Choice.
Mr Savins said Better Choice was keen to provide lending solutions for the thousands of Australian expats, foreign nationals and temporary residents who have decided to buy a home or investment property in Australia.
“This is in response to what is now a very underserviced segment of the market,” he said.
“A number of lenders have pulled out of this market, and we want to plug the gap.
“The good news for non-resident borrowers is there are lenders offering similar home loan features and interest rates as they do for resident borrowers,” Mr Savins said.
The news comes following the announcement that Better Choice Home Loans has joined PLAN’s lender panel, providing the 1,600 PLAN brokers with access to the lender’s non-resident and expat loans, as well as their prime, specialist and commercial products.
At the time, Mr Savins stated that he was “delighted” that PLAN Australia had added the lender to its panel.
He added: “In these challenging times, as Australians deal with the economic impact of the COVID-19 pandemic, the Better Choice shopfront of products provides a real opportunity for PLAN brokers to support their customers whether it be through a refinance or purchase opportunity or helping consumers who have experienced financial difficulties caused by the economic downturn.”
[Related: PLAN bolsters lending panel]