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Non-bank lender bumps up LVR

by Staff Reporter8 minute read
The Adviser

In a sign that competition is beginning to reemerge in the market, Australian First Mortgage (AFM) has expanded its loan portfolio to include a 95 per cent loan-to-value ratio (LVR) full doc product with a variable interest rate of 5.84 per cent (CPR 6.19 per cent).

Borrowers will be asked to pay an application fee of $675.00, which includes the cost of one standard valuation.

Suitable for investors, first home buyers and debt consolidation, borrowers have the option of choosing from a range of features including flexible repayment options, AFM said.

“While Westpac recently reduced its maximum LVR from 97 per cent (including LMI) to 87 per cent for new customers, AFM is looking at ways of assisting borrowers entering the property market by offering products with features, competitive rates, and most of all quick turnaround times of a conditional approval within 24 to 48 hours,” said AFM’s director sales and marketing Iain Forbes.

“The interest rates presently on offer from AFM are well below that of most other lenders.

"AFM represents good old fashioned customer service, strength, long term sustainability, and solid alliances,” he said.

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