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The lender has introduced a multiple offset feature on two home lending products in response to growing customer demand.
Australian Finance Group’s (AFG) lending arm, AFG Home Loans, has updated its AFG Retro and Link home loan products to let customers link multiple offset sub-accounts.
New and existing customers can now link up to four separate sub-accounts to their Retro or Link home loan, using these to offset interest payments and pay down their home loan sooner.
AFG Home Loans also upgraded several credit policies on its Retro Home Loan, aiming to serve brokers and their customers better.
Changes include an increase in the amount of equity that can be released using an acceptable stated purpose from $200,000 to $500,000.
The single security maximum loan size has also been increased to $3 million from its previous range of between $2 million and $2.5 million across the full doc and low doc product suite.
Aggregate customer exposure has increased to $4 million, up from $3 million.
A traditional one year’s financials policy has also been introduced, aimed at providing self-employed customers greater flexibility in verifying income for serviceability purposes.
Hayden Cush, AFG Home Loans general manager – white label, said the multiple account offset facility was ideal for customers who wanted to split their funds across more than one sub-account but were keen for all accounts to cut interest payments.
“Many people have more than one account to help them manage their finances. Common examples of the various accounts include an everyday account, savings account, bills and holiday and/or other major goals accounts,” he said.
“By enabling up to four sub-accounts to offset against the home loan, this enables people to continue this good way of tracking progress on their financial goals and spending, without having to pool funds into one account to get the maximum interest offset benefits.”
Cush stressed that the multiple offset sub-accounts were launched in response to strong customer demand.
“Customers wanting access to multiple offset accounts has been one of the top product enhancement requests we have received from the AFG network over a number of years,” he said.
Commenting on changes to its Retro Home Loan credit policies, Cush said: “Importantly, Retro loans now become even more accessible for self-employed customers, with the requirement of financial records now falling in line with traditional one year’s financials policies.”
Last month, National Australia Bank (NAB) introduced a multiple offset feature that lets home owners offset their mortgage across up to 10 different accounts.
The major bank was hot on the heels of Westpac, which announced a similar move earlier in February.
[Related: NAB launches multiple mortgage offsets amid growing demand]
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