AFM reboots ING Direct funding line

by Ben Abbott11 Nov 2011

Mortgage manager Australian First Mortgage has resurrected its funding line with ING Direct, allowing it to launch a new range of 'Platinum Option' products.

Speaking with Australian Broker, AFM director and head of credit David White said the funding agreement with ING Direct had been suspended by mutual agreement as a result of the GFC.

"We had a relationship with ING before the GFC, and it was a good relationship, but we agreed to suspend the agreement, and it was never reignited until now," he said.

White said the time was right to reboot the funding line, with the expectation that the products on offer from the second tier bank would fill niches within the mortgage manager's suite.

AFM was particularly interested in catering for new purchases up to 95% LVR plus either capitalised LMI, or the group's Reduced Equity Fee alternative to LMI. Now launched as the 'Platinum Full Doc', AFM previously only offered loans up to a maximum LVR of 90%.

Construction is now also available within the Platinum range, another extension to AFM's suite. White added the Platinum range offered competitive one to five-year fixed rate deals.

"We now have a broad range of funding options for brokers. We have a multi-ranged residential program and a multi-ranged commercial programme under one roof," he said.

White added AFM would launch an SMSF offering within the next two weeks as a result of the ING Direct deal, which he said would complete a "total lending package" for brokers.

The new Platinum range includes both variable and fixed term loans and lines of credit, while two low-doc options are also be available. All products in the Platinum range will be subject to clawback of upfront commission of 100% in the first year and 50% in the second year.