Brokers turn to small lenders for product innovation

John Kavanagh

Two big mortgage broking groups have turned to specialist lenders to freshen up their white label offerings, as one targets non-resident borrowers and the other targets borrowers wanting to avoid the “loyalty tax”.
 
AFG will add a loan funded by Brighten Home Loans to its AFG Home Loans range, while Mortgage Choice has launched three new white label loans funded by Athena Home Loans.
 
Brighten has a range of product for under-served segments of the mortgage market, including the self-employed, alternative documentation loans, non-residents and expatriates, and bridging finance.
 
AFG national sales manager Hayden Cush said: “As we move on from the restraints put in place in response to COVID, there is growing interest from customers abroad looking for finance in Australia. We are aiming to launch to our broker network in the September quarter.”
 
AFG has existing white label arrangements with Bendigo and Adelaide Bank, Thinktank, Pepper Money and Advantedge.
 
Mortgage Choice has launched three new loans funded by Athena under the Mortgage Choice Freedom brand, which incorporate distinctive features offered by Athena in its own products.
 
Existing borrowers will receive the same rates as new customers on like-for-like loans. And the loans will use a dynamic pricing structure that lowers the rate as the loan-to-valuation ratio reduces.
 
Athena’s own “auto reset” offer involves a rate reduction of around 5 basis points when the LVR falls below 70 per cent and then a second cut when the LVR falls below 60 per cent. Redraw amounts are not included in the calculation of the LVR.
 
Mortgage Choice chief executive Anthony Waldron said: “Historically, Australian banks haven’t rewarded borrowers for their loyalty. In fact, long-term customers often watch in disbelief as the bank they’ve been loyal to for years offers new customers much lower rates and other deals like cashback offers.” 
 
Mortgage Choice already has white label arrangements with Pepper Money, Bluestone Home Loans and Advantedge.