Lender launches 95% LVR loan for FHBs

By Emma Ryan 20 September 2019 | 1 minute read

Better Choice Home Loans has launched a new 95 per cent LVR home loan product, which aims to help more first home buyers enter the property market.

The mortgage lender, part of the BNK Group, has launched a new Platinum Prime home loan offering, which has a loan-to-value ratio (LVR) of 95 per cent, plus capped lenders mortgage insurance (LMI) premiums (to a make a maximum LVR of 98 per cent).

The loan product targets those with a minimal deposit or those who do not have 5 per cent in genuine savings. For example, the required contribution may be by way of a gift, a First Home Owners Grant, or asset sale.

The product is being made available to both self-employed and PAYG customers and comes with a 100 per cent offset account.

Speaking of the new offering, Better Choice executive director Allan Savins said the new Platinum Prime home loan package has been formulated for first home buyers who are “struggling to save enough of a deposit” to enter the property market and does not come with any monthly or annual fees.


“Better Choice is delighted to offer a new home loan product that takes the stress out of saving to buy a new home and provides the next generation of home owners with a gateway to the property ladder,” Mr Savins said.

According to Mr Savins, recent studies have shown approximately 70 per cent of young adults aspire to achieve home ownership; however, that goal has become more difficult under the tighter lending regime adopted by the major banks.

“Better Choice is looking to open the doors to a better future for the next generation of home owners,” he said.

“Better Choice is able to offer nine funding lines, which gives us the opportunity to provide a significantly diverse range of solutions to our introducers,” Mr Savins concluded.

The announcement comes after the release of Better Choice’s FY19 results, which showed that the lender’s mortgage settlements increased by 49.9 per cent year-on-year to $578 million.

Mr Savins attributed the growth in mortgage settlements to “strong funding partnerships across the prime, near-prime and specialist sectors”, as well as Better Choice’s relationship with BNK Banking Corp, the entity formed following the merger of finance aggregator Finsure and Western Australian bank Goldfields Money.

“[BNK has] been able to provide funding for underserviced niches such as expat loans and broker trail book loans, as well as providing extremely competitive rates for other sectors such as investor loans,” Mr Savins said at the time.



Mortgages are loans that are used to buy homes and other real estate where the property itself serves as collateral for the loan.


Mortgages are loans that are used to buy homes and other real estates where the property itself serves as collateral for the loan.


Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.

About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

Lender launches 95% LVR loan for FHBs
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