Better Choice Home Loans has announced a three-month home-loan deal which will offer Australian expatriates rate discounts for principal-and-interest and interest-only mortgages.
This move is part of the lender's efforts to cater to the needs of Australian expats, who seem to make up an "underserviced segment" of the lending market, said executive director Allan Savins.
"With the looming shadow of Brexit in the UK and the volatile political climate in the US, we are also seeing many Australians abroad considering a move back to Australia and looking to take a strategic position now to acquire property in Australia in readiness for their return home," Savins told Australian Broker.
Better Choice decided to cut the rates of some offers included in its Gold Expat product line. For Australian expats borrowing with a 70% loan-to-value ratio (LVR), Better Choice is cutting the rates of its owner-occupier package by 25 basis points (bps) to 3.59%.
P&I investment loans for borrowers under the same LVR will enjoy a 35-basis-point discount, bringing the rate to 3.79%. Interest-only investment loans will now carry a mortgage rate of 3.99%, reflecting a 70-basis-point cut.
Australian expats who borrow under an 80% LVR will also be able to avail of discounts of 20bps to 3.79% for owner-occupied mortgages, 35bps to 3.94% for P&I loans, and 70bps to 4.09% for interest-only loans.
Better Choice's Gold Expat loan home-loan offerings are funded through a partnership with BNK Banking Corporation. Early this month, the lender announced similar rate discounts for Australian property investors.