Policy changes target first-home buyers, investors, and self-employed borrowers
AFG Home Loans has introduced significant changes to its Retro and Link mortgage products, aiming to widen access for a more diverse group of borrowers, including first-home buyers, investors, and self-employed applicants.
The adjustments, announced earlier this week, are part of AFG Securities’ strategy to strengthen its position in the non-bank lending sector. The company, a subsidiary of Australian Finance Group, is seeking to attract borrowers who may not fit standard lending profiles.
The updated policies, available solely through brokers in the AFG network, include an increase in the maximum loan-to-value ratio (LVR) for the Retro Full Doc Loan to 95% (inclusive of lenders mortgage insurance), making it more accessible to those with smaller deposits. In addition, the requirement for three months of genuine savings has been removed. Applicants now only need to demonstrate that funds are available in their account or provided as a gift from family.
“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,” said Hayden Cush (pictured left), general manager at AFG Home Loans.
Other changes include extending interest-only repayment terms from five to 10 years on Retro Full Doc, Retro Lite, and Link products. The maximum LVR for Link Premium, Retro SMSF, and Retro Lite low doc loans has also been raised to 90% (inclusive of LMI). Rental income shading has been reduced to 10% across all products.
“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,” said Dom Di Gori (pictured right), AFG executive general manager of consumer lending.
“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.”
AFG has also reaffirmed its commitment to environmental initiatives, pledging to plant one tree in Australia for every Link and Retro home loan settled, in partnership with Carbon Positive Australia.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
