Non-bank lender Avanti Finance has launched a new mortgage product aimed at the near-prime market, and says it will “bridge the gap” between the products offered by main banks compared to specialist lenders.
Avanti’s new home loan product will offer floating rates starting from 4.15%, and will be available on both interest-only as well as principal and interest repayment schedules. The rates are designed for the purchase of residential homes and select apartments with loans from $100,000 and $2 million.
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Avanti says the floating rate is “significantly lower” than its other existing mortgage products, and represents its first step into the “near-prime” market. The extended portfolio of products will be available through its network of mortgage advisers.
Avanti Finance CEO Mark Mountcastle says this is a step away from only offering options to customers who don’t fit standard main bank criteria, as the new rate will be a solid option for customers with a strong credit history.
“Until now, our product offering has been focused on specialist lending: providing loans to those who don’t fit into the big banks’ approval process,” Mountcastle said.
“Now, we’re able to provide a more attractive interest rate to those customers who can demonstrate strong financials and a good credit history.”
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“While the bank are offering attractive fixed rates, they are still saying no to a lot of customers with strong applications. We’re here to give them an alternative,” Mountcastle explained.
“We’re providing all the same support to our existing products as we always have. But now, we’re able to offer a more attractive deal to new and existing customers that fit our near-prime criteria.”
The new near-prime product will be available from 3 August 2020. Mortgage advisers are encouraged to contact Avanti Finance for more information on the new product, and to add it to their existing line-up.