A non-bank lender has launched a new non-conforming construction loan.
Australian First Mortgage
has announced the launch of its new Alternate Option Construction Facility, to be available exclusively through the broker channel. The company said the product was intended to help borrowers who could not qualify for a traditional construction loan due to credit scoring issues or other past credit problems.
The product is available in both full-doc and low-doc, with rates starting from 5.59% (comparison rate 5.84%*). The facility allows for defaults up to $1,000 and offers an LVR up to 90%.
“We have designed the product so it will work hand-in-glove with all brokers, especially those working closely with major builders who have customers that require specialised solutions to fund the construction of their home," AFM general manager David White said.