Australian Finance Group Ltd’s (AFG) non-bank lending business, AFG Securities, has today announced the launch of AFG Home Loans Retro Thrive, an interest-only refinancing mortgage for mature aged borrowers.
AFG Home Loans Retro Thrive –an interest-only loan for over 50-year-olds refinancing existing investment debt with a loan term of up to 40 years – marks a major step in AFG Securities’ bid to become the preferred lender for older Australians.
AFG Securities General Manager Damian Percy said through the course of engaging with mature aged borrowers, who typically faced lending restrictions because of their age, AFG Securities had identified an important segment of the market whose needs were not being met by the banking sector and other lenders.
Mr Percy said many mature aged borrowers with a portfolio of investment properties were being forced to pay principal and interest on investment properties with very low loan to value ratios (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,” he said.
“The feedback we’ve received is that these borrowers had already done the hard yards to reduce LVR’s 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.”
Mr Percy said AFG Securities had therefore developed AFG Home Loans Retro Thrive – a product that could give mature aged borrowers with low debt investment portfolios what they needed at that stage of life, whilst ensuring the credit risk was sound and their long-term objectives met.
AFG Home Loans Retro Thrive is available for refinances on a dollar-for-dollar basis, with up to 65 per cent LVR. Borrowers need to pay back only the interest each month.
“This may assist them to free up some of their cash flow to spend on the things they’ve worked hard for over the years such as holidays, or home renovations,” Mr Percy said.
AFG Home Loans Retro Thrive complements AFG Securities’ existing product range, comprising AFG Home Loans Retro, AFG Home Loans Retro Switch and AFG Home Loans Link.
For every mortgage written by AFG – including the new AFG Home Loans Retro Thrive – a native tree will be planted in Australia, in partnership with Carbon Positive Australia.
AFG Home Loans Retro Thrive is available to customers of AFG Home Loans, via the AFG broker network.
For further information visit https://www.afghomeloans.com.au/retro-thrive/
Information is correct as of 17 October 2023 and subject to change at any time. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute accounting, finance, legal or tax advice.
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