Lender also makes key credit policy upgrades
AFG Home Loans has introduced a multiple offset sub-account feature for its Retro and Link products, allowing borrowers to link up to four sub-accounts to offset their home loan.
The new offset option enables customers to allocate funds across multiple accounts while still reducing interest payments. Hayden Cush (pictured above), general manager of white label at AFG Home Loans, said the feature responds to customer demand.
“Many people have more than one account to help them manage their finances,” Cush said. “Common examples of the various accounts include an everyday account, savings account, bills and holiday and/or other major goals accounts.
“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 added that customer demand for multiple offset accounts had been strong, particularly in the current high-interest rate environment.
Meanwhile, AFG Home Loans has implemented several changes to its Retro credit policies. These include increasing the maximum equity release amount with an acceptable stated purpose to $500,000, up from $200,000. The single security maximum loan size has also increased to $3 million across full-documentation and low-documentation loans, with total customer exposure now capped at $4 million, up from $3 million.
In addition, the company has introduced a traditional one-year financials policy for self-employed borrowers, offering more flexibility in income verification.
“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,” Cush said. “These enhancements are designed to make partnering with AFG Home Loans easier for our brokers and their customers.”
AFG Home Loans’ market share declined slightly to 6.6% in the December quarter due to increased competition. However, Cush remained optimistic about the company’s position.
“AFG Home Loans is well positioned to once again be at the forefront as a compelling alternative to the major banks,” he said.
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