ISCOVER
The lending arm of AFG has broadened its policy on two mortgage products to service more borrowers.
The wholesale lending arm of ASX-listed mortgage aggregator Australian Finance Group, AFG Securities, has updated its policies to attract more first home buyers, investors and those who may not meet standard lending criteria, such as self-employed applicants.
The changes, which apply to the Retro and Link mortgage products offered exclusively to AFG brokers through the aggregation group’s white-label brand AFG Home Loans, have been brought in to “enhance the product range’s appeal by broadening eligibility and improving accessibility” and help position AFG Securities for growth.
For all Retro and Link products, AFG Home Loans will now reduce rental income shading to 10 per cent, meaning that 90 per cent of rental income can now be considered for servicing.
Other changes include:
Retro Products
- Retro Full Doc Loan:
Maximum loan-to-value Ratio (LVR) increased to 95 per cent (inclusive of LMI).
Removed the requirement to show three months’ genuine savings – borrowers now only need to show funds available (including gifted funds from family).
- Retro Full Doc, Retro Lite, Retro SMSF:
Interest-only repayment terms extended from 5 years to 10 years
- Retro Lite (low doc) & Retro SMSF:
Maximum LVR increased to 90 per cent (inclusive of LMI).
Link Products
- All Link Products:
Interest-only repayment terms extended from 5 years to 10 years.
- Link Premium:
Maximum LVR increased to 90 per cent (inclusive of LMI).
For every Link and Retro home loan settled, AFG will plant one tree in Australia in partnership with Carbon Positive Australia.
Hayden Cush, the general manager of AFG Home Loans, said the changes would substantially enhance the product range to further reach underserved customers.
“We’re proud to offer greater flexibility and inclusivity, helping more Australians access the finance they need, thereby fulfilling our purpose of creating a fairer financial future,” he said.
Dom Di Gori, the executive general manager of consumer lending at AFG, said the enhancements reflect the company’s commitment to growth and innovation in the non-bank lending space.
“AFG Securities has built a strong proposition over the past 15 years and these changes mark another important step forward as we expand our product offering and unlock new opportunities for AFG’s brokers.
“AFG Securities will be offering some of the most attractive and accessible products, for a diverse range of borrowers, available in the market, which will support more Australians to fulfil their property ambitions.”
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