Amid a tough funding environment mortgage manager Australian First Mortgage (AFM) yesterday unveiled a new product that it claims will compete with the big banks on price.
The product has a fee-free standard variable rate of 8.97 per cent and a propack rate of 8.92 per cent.
Upfront commission on the product will be 0.65 per cent; trail commission will apply from day one at a rate between 0.10 to 0.15 per cent – levels comparable with some of the maximum commissions rates offered by the banks but without the requirements to hit certain metrics.
There are also no claw-backs.
Michael Maiorano, associate director of AFM, said the product was as competitive as any of the big banks’.
“Feedback told us the broker channel wanted to support non-bank lenders but banks were simply winning on price,” he said. “This product delivers exactly want brokers want.”
The Brokerage’s head of sales and distribution Michael Osborne said the new products demonstrated AFM’s agility and preparedness to offer choice – which he hopes brokers will embrace.
“There are brokers caught up with the ‘flight to safety’ message, reluctant to lead their customers with alternate competitive offerings,” he said.
“At these rates, with nil application fees, it’s worth putting these products in front of your customer,” he said.
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