Login
ISCOVER
The aggregator’s non-bank lending arm has announced the launch of a new home loan product aimed at mature-aged borrowers.
Australian Finance Group’s (AFG) non-bank lending business AFG Securities has launched an interest-only loan entitled AFG Home Loans Retro Thrive, targeted at over 50-year-olds looking to refinance an existing investment debt with a loan term of up to 40 years.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
The new Retro Thrive offering is available for refinances on a dollar-for-dollar basis, up to 65 per cent loan-to-value ratio (LVR), with borrowers only needing to pay back the interest each month.
The introduction of this product range adds to AFG’s existing products comprised of AFG Home Loans Retro and AFG Home Loans Link.
General manager of AFG Securities, Damian Percy, said the non-bank lending arm had identified an “important segment of the market” whose needs weren’t being met by other lenders through engaging with mature-aged borrowers.
According to Mr Percy, many mature-aged borrowers with a portfolio of investment properties were being “forced to pay principal and interest on investment properties with very low LVRs”.
“This is at odds to what they are striving to achieve at that stage in their life – which is to prioritise cash flow from the income produced by their investment properties, rather than further reducing their debts,” Mr Percy said.
“The feedback we’ve received is that these borrowers have already done the hard yards to reduce LVRs to very low levels and were frustrated that they were being forced to make higher repayments to further reduce their debt at a time when their needs and objectives are about maximising their retirement, or pre-retirement, available cash flow.”
Earlier this year, AFG unveiled AFG Home Loans Retro Switch, a product that enables AFG brokers to offer refinancing customers a home loan product that uses a reduced serviceability buffer of 1 per cent.
Similar to the new Retro Thrive range, Retro Switch applies dollar-for-dollar refinances for borrowers who have 12 months of good repayment history, no significant change to their income in the last 12 months and who are seeking $1.5 million or less with an LVR of 80 per cent.
International bank joins AFG’s lending panel
AFG recently expanded its partnership with international bank HSBC Australia (HSBC) in order to offer all accredited AFG brokers and their clients access to HSBC Australia and its full suite of home loan products.
According to AFG, it began working with HSBC Australia in early 2021 before executing an agreement in September of that year following an “extensive due diligence process”.
[RELATED: AFG launches reduced buffer home loan]
JOIN THE DISCUSSION