The major brokerage’s latest white label offering will target home buyers and refinancers facing a deposit shortfall.
Major brokerage Mortgage Choice has partnered with non-bank lender Skip to launch Mortgage Choice Skip, a white label home loan offering eligible owner-occupier and investor borrowers lending of up to 98 per cent of a property’s value.
The new product broadens Mortgage Choice’s proprietary lending range and is aimed at borrowers whose ability to repay a loan is stronger than their available deposit.
It is available for purchases and refinances, including refinancing with cashout, with loan amounts of up to about $3.5 million.
Mortgage Choice said rates under the offering would start from 6.39 per cent, while the product’s fees would be guaranteed to be lower than lenders mortgage insurance (LMI). It will not charge application, annual, or ongoing fees.
Mortgage Choice also noted that the product could provide up to 30 per cent more purchasing power.
Mortgage Choice CEO Anthony Waldron said the product was designed to respond to the deposit hurdle facing buyers who may otherwise delay their plans or absorb the cost of LMI.
“The combination of elevated property prices and high cost of living means that many hopeful buyers are needing to put their purchase plans on hold or face having to pay high LMI rates to buy their first, or next, property,” he said.
Waldron added that the new lending option was intended to support a range of borrowers, including first home buyers, buyers unable to use government schemes, and existing owners looking to move up the property ladder.
“In this market, there are borrowers, particularly upgraders, who have no trouble servicing for a loan but have limited options based on their deposit size,” he said.
“Whether it’s first home buyers without the help of the ‘Bank of Mum and Dad’, buyers squeezed out of government scheme price caps, or upgraders looking to take their next step, Mortgage Choice Skip gives our network the ability to help borrowers get a ‘yes’ sooner.”
National rollout
Skip said that it had deployed business development managers across NSW, Queensland, Victoria, South Australia, and Western Australia to support the national rollout through Mortgage Choice.
Skip founder Mario Emmanuel said the partnership was built around the premise that borrowers with a sound credit record and reliable income should not necessarily be excluded from home ownership due to the fact that they had accumulated a smaller deposit.
“For over three decades, Mortgage Choice brokers around Australia have championed home ownership for Australian families,” Emmanuel said.
“They know that when a borrower has strong earning capacity and a clean credit profile, the size of their deposit shouldn’t stand between them and home ownership. We’re excited to partner with them and bring Mortgage Choice Skip to market, allowing brokers to unlock home ownership for more hardworking Aussies.”
Mortgage Choice Skip is the latest addition to the group’s growing white label line-up.
The suite already includes Mortgage Choice Freedom, powered by Athena; Mortgage Choice Ignite, supported by Pepper; and Mortgage Choice Amplify, backed by Bluestone.
[Related: Mortgage Choice bolsters cyber defences and AI strategy]
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