MORE FLEXIBILITY, MORE INCLUSION.

Policy Expansion

Retro and Link have expanded a range of policies to give you more ways to help your customers.

These key updates are designed to support financial inclusion, making it easier to assist First Home Buyers, and customers who may not fit the traditional lending mould, like self-employed, non-conforming and SMSF borrowers.

The product range expansion provides more flexibility for AFG brokers to help more Australians fulfil their property ambitions.

WHAT'S CHANGED

Policies we’ve expanded

Customer Segment

Product

Policy Change

Details

Customer Segment

First Home Buyer & Investor

Product

Retro Full Doc

Policy Change

95% LVR incl LMI

Details

Increase to a maximum LVR of 95% inclusive of LMI for purchases (also available to 2nd time buyers)

Customer Segment

First Home Buyer & Investor

Product

Retro Full Doc

Policy Change

Removal of genuine savings requirement

Details

Verification of funds to complete either being held in the applicants account or being gifted by a family member

Customer Segment

Self-employed

Product

Retro Lite Doc

Policy Change

90% LVR incl LMI

Details

Increase to a maximum LVR of 90% inclusive of LMI

Customer Segment

Investor

Product

Retro Full Doc, Retro Lite, Link

Policy Change

Interest only option 10 years

Details

Increase in the maximum interest only period from 5 years to 10 years for investment lending purposes (at time of application), reverting to P&I for the remainder of the term

Customer Segment

Investor

Product

All products

Policy Change

Rental income shading 10%

Details

Rental income shading reduction from 20% to 10%

Customer Segment

Investor

Product

Retro SMSF

Policy Change

90% LVR incl LMI

Details

Increase in the maximum LVR from 80% to 90% inclusive of LMI

Customer Segment

Near Prime

Product

Link

Policy Change

90% LVR incl LMI

Details

Increase to a maximum LVR of 90% inclusive of LMI

LINK PREMIUM TO RETRO

Switch them after 12 months

If you have customers that are eligible for a Link Premium loan, once these customers have been with Link for 12 months, they can get onto a sharper product longer term, with an automatic conversion to Retro.

Once the 12 months from the settlement have been completed and the criteria have been met, we will email you that your customer’s loan qualifies and has been converted to the sharper Retro rate.

Link to Retro Criteria

The loan was settled 12 months prior.
No defaults were listed in the original assessment.
No repayments later than ten days.

Example of how this works

You have a customer that doesn’t quite fit the mould? Link Premium offers your customer additional flexibility, and enables them to purchase their first property, utilising a 10% deposit.
At today's rates, your customer would be eligible for a Link Premium product that is priced at a variable rate of 7.35%.
After 12 months of good conduct, let’s assume that the LVR still remains above an 80% LVR, if your customer can show good repayment history over the next 12 month period, they will be automatically eligible to convert to the Retro product, where today's equivalent rate is 6.09%.
If there has been property growth, or the customer has been diligent in paying down their mortgage, and the LVR hits 80%, that rate would then drop to 5.74% at that time. That would be a 1.61% saving on the applicable interest rate.
And what’s best – it is all done automatically and free of charge.

BROKER RESOURCES

Updated key documents

The above policy expansion changes means that we’ve updated some key documents. Click below for the Retro and Link Niche Policy sheet and the Retro and Link Product Specs documents. (Other key documents can be found on Lenders).

RETRO & LINK NICHE SHEET

RETRO PRODUCT SPECS

LINK PRODUCT SPECS

CASE STUDIES

Single applicant investor looking to expand portfolio

Andrea is looking to purchase an investment property to add to her existing investment portfolio. She currently holds an investment property, jointly held with her sister. She also has an owner occupied property that she solely owns, with a small debt on this property. See how a Retro investment loan would suit her situation.

Read case study

Property investment diversification via SMSF

Greg and Susan have an SMSF with a decent balance and are interested in diversifying their investment portfolio by investing in real estate. The couple doesn’t have enough funds within their SMSF to purchase the property outright, so they consider taking out an SMSF loan. See how a Retro SMSF loan would suit their situation.

Read case study

Flexibility for self-employed clients

Greg and Susan would like to expand their investment portfolio with another property. Due to their busy schedule, they haven’t had a chance to lodge their tax returns for the most recent year. See how Link Lite can help their situation.

Read case study

Contact us

Get in touch with your BRM

If you would like to workshop a scenario with one of our dedicated credit specialists, please use this template and send it to scenarios@afghomeloans.com.au, or speak to your AFG Home Loans BRM about the policy changes.