Athena launches new bridging loan offering

The loan range is from $100,000 to $5 million and has a maximum loan-to-value ratio (LVR) of 85 per cent with a contract of sale or 80 per cent LVR without one.

Servicing is based on a bridging term between six and 12 months, and the loan can be used for multi-property, multiparty lending (up to 10 properties, up to $5 million).

The product includes multiple offsets, redraw, and unlimited repayments and withdrawals.

Borrowers can choose whether to capitalise the interest so they have no repayments or make interest-only repayments.

A new scenario modelling tool

Athena Home Loans co-created its new bridging loan product with brokers in a bid to resolve common pain points.

As such, the new bridging loan product also comes with a new scenario modelling tool that uses real-time data from property analytics company PropTrack to model market dynamics (such as up-to-date valuations, sales history, and market trends) and detailed calculations for borrowing capacity, bridging costs, etc.

It provides four side-by-side comparisons to help brokers and their clients understand the different outcomes for:

• Buying first and then selling.

• Selling first and then buying.

• Settling the same day.

• Keeping both properties (staying put).

The tool provides month-by-month breakdowns showing changes to bridging costs and end loan balance over time. It also gives immediate feedback about policy caps, required cash shortfall, and valid/invalid scenarios to further accelerate the process.

Brokers can then present clients with each scenario and choose a bridging finance option that best suits the clients’ needs (for example, choosing to have a bridging loan only, having end debt or no end debt at completion of the transaction, or maximising borrowing power by using 5 per cent shading to borrow more against the property being sold).

‘Designed by brokers, for brokers’

Athena said broker feedback had helped design some of the functions of the tool, which included utilising a single platform to provide scenario-based calculators; providing scenario PDFs for clients and broker team members; and enabling brokers to override suggested property values or projections (so they can factor in renovations, for example).

The lender said it also customised its commission structure to ensure brokers receive the standard upfront and trail commission on the end debt portion and are fairly compensated for both the peak debt (bridge period) and end debt, in recognition of work undertaken.

Unveiling the new bridging loan product and tool on Wednesday (19 November), Athena Home Loans said it hoped it would help make borrowers more confident in their decision to purchase a new property, noting that while around 1.8 million Australians look to sell their property every year, more than 1 million do not progress to a sale.

Athena CEO Nathan Walsh commented: “It’s Australia’s biggest housing headache: how do you buy your dream home while selling the one you still live in? Athena’s mission is to change home loans for good – so taking on the hardest move in the property journey was a natural next step.

“And it had to be built the right way. This solution was designed by brokers, for brokers – a deep co-creation process with brokers nationally shaping every decision, from policy to product to process. When life gets complicated, brokers get called. These are high-trust, high-emotion moments where their expertise truly shines.”

Speaking of the new scenario modelling tool, he added: “A loan product alone was never enough. We leveraged Athena’s digital innovation capability and the depth of PropTrack’s property data and insights to turn a historically confusing, fragmented process into something clear, comparable and genuinely customer-first.

“Our vision is simple: make the move seamless, strategic and stress-free. Turn the most stressful stage of the property journey into the moment where brokers create the most value. And we’re incredibly proud of what we’ve built together.”

Anthony Waldron, CEO of Mortgage Choice and Financial Services at REA Group, welcomed the new Mortgage Choice Freedom Move product for brokers and stated: “We are incredibly excited to be launching another new product with Athena. Our partnership has gone from strength to strength over the past two years, as we work together to create innovative products that help more Australians secure property finance and then pay off their mortgage faster, with the support and guidance of their broker.

“We’re thrilled that the scenario modelling tool is powered by PropTrack, REA Group’s property data, digital valuations and insights business. This is our first project under a new enterprise agreement between the two businesses, which has formalised PropTrack as a strategic partner to Athena across valuations, data and APIs, creating a path for stronger collaboration powering more innovative and differentiated customer experiences.”

Speaking about the new Apollo Next by LMG offering, Ewen Stafford, executive director & CEO of LMG, said: “Bridging finance has always been one of the more complex areas for brokers and clients to navigate. Together with Athena, we’ve built a solution that takes the uncertainty out of the process, for brokers, clients and agents alike.

“The new scenario modeller is a powerful feature, taking all the guesswork out for clients and changing the conversation brokers can have about what’s possible. And importantly, it’s bridging finance that brokers are fairly paid for, a solution that rewards the time and expertise it takes to get these deals done right.”

[Related: Athena launches new products via broker channel]