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Under the expansion, Australian Finance Group (AFG) brokers will have access to commercial lending products across full-doc and low-doc scenarios, prime and near-prime borrowers, as well as SMSF lending secured by commercial property only.
The aggregator launched the new commercial products at an event in Sydney on 9 July, broadening the AFG Home & Commercial Loans Options (AFGHL Options) suite beyond its residential-led offering.
The launch follows recent changes to SMSF borrowing rules, under which future limited recourse borrowing arrangements (LRBAs) for residential property through self-managed super funds will be banned.
With residential SMSF borrowing set to close to new borrowers on 10 August, AFG said it expected demand for commercial lending and alternative asset classes, including commercial property, to increase.
The expansion also marks the next stage of AFG’s white label partnership with Pepper Money, with the non-bank providing the credit, service, and operational infrastructure behind the expanded AFGHL Options range.
AFG and Pepper Money’s announcement follows strong growth across both segments, with Pepper Money reporting close to 60 per cent year-on-year growth across its commercial and SMSF lending (covering both residential and commercial SMSF loans).
AFG general manager of white label, Hayden Cush, said brokers were increasingly having to support their clients with needs extending beyond vanilla deals and standard residential mortgages.
“The next stage of growth for brokers is moving beyond residential loans. Customers are looking at more sophisticated property, business and investment structures, and brokers who can support those conversations will be better placed to grow with them,” Cush said.
“Expanding AFGHL Options gives our brokers access to a broader commercial suite at a time when demand for flexible commercial and SMSF commercial lending is expected to increase.”
AFG said that near-prime commercial lending will also form a key part of the expanded suite, an area where the aggregator said lending options had traditionally been more limited for brokers and their customers.
The new range also builds on Pepper Money’s existing white label model, enabling the products to be offered under the AFGHL Options brand.
Pepper Money head of white label and strategic partnerships, Mathew Rehayem, said the partnership would support AFG’s expansion into a broader range of lending scenarios.
“By leveraging our scale and deep broker relationships, we’re able to deliver white label solutions that empower our partners to grow their businesses while helping more customers access the helpful loan options they need,” Rehayem said.
[Related: SMSF lending tipped for commercial property shift]
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