Lender says now is an 'exciting time' to be a borrower as it lowers fixed rates

by AB18 Feb 2013

Australian First Mortgage (AFM) has become the latest in a line of lenders offering reduced fixed interest rates on select products.

The lender has sliced .20% off its Complete Option products on its one, four and five-year fixed rates for all new business received on or after February 14. The two-year rate has been reduced by .10%.

AFM director, David White, says these are 'exciting times' for borrowers, with many lenders opting to lower their fixed and variable rates.

“A borrower who applies for a mortgage under the AFM Alliance Combo Programme split facility (which is a 50% fixed and a 50% variable) would receive a two-year fixed rate of 4.89% (CPR 5.70% and a variable rate of 5.41% (CPR 5.80%) for a professional package mortgage with an LVR under 75%."

AFM also lend to SMSF’s and have recently increased their LVR to 80% in respect of residential lending and 65% on commercial properties.