AFG Home Loans lending policy depends on the product line: the funding arrangement sets the credit criteria and the broker’s commission terms. Identify the exact line before assessing the borrower or forecasting upfront and trail. Alpha, Retro and a legacy Edge account are different lending arrangements, even when the statement carries the AFG Home Loans name.
Lending Line and Payment Terms
Match the AFG Home Loans product to its credit provider, servicing team and commission schedule before recording the expected payment. AFG Home Loans distributes its loans through AFG brokers. Its public product range includes Retro, Bright, Align, Alpha, Bridge and Options. A legacy product appearing in internet banking does not establish that it accepts new applications.
Keep the lender’s remuneration schedule beside the broker’s distribution agreement. Record the commissionable advance, upfront rate, trail balance definition and payment commencement rule. Then record any aggregator split or distribution deduction separately. The amount paid to the brokerage depends on both documents. Use the AFG commission and fee schedule for the published comparison, alongside the terms applicable to the actual loan.
For trail, distinguish the outstanding loan balance from the balance on which the lender pays commission. Record how the nominated line treats offset funds, arrears and later advances. Apply the schedule’s annual rate using its stated payment convention. A gross lender rate and the brokerage’s net receipt answer different questions.
AFG Alpha Home Loans
AFG Alpha is a product family within AFG Home Loans. AFG’s Alpha page names Bendigo and Adelaide Bank Limited as provider. Confirm the credit provider and servicing contact in the chosen loan’s disclosure documents. Alpha’s Basic and Offset variants have different features, and the offset facility belongs to the Offset Home Loan.
Compare the chosen Alpha loan with at least one other panel option on the same amount and term. Record the rates, fees and revert rate, plus extra repayment and redraw conditions. Include offset availability and its fees, repayment frequency and the hardship contact. Retain the comparison and explain why the selected variant suits the client’s needs. The Alpha product details distinguish the variants, while AFG publishes separate hardship contacts by line.
Edge Loans Moving to NAB
AFG Home Loans Edge is an Advantedge-funded line. Advantedge’s announced migration moves these accounts to NAB Tailored Home Loans in 2026. The transfer itself does not require a refinance. The broker migration FAQs set out the transfer and servicing restrictions.
The FAQs state that Advantedge commission payments and clawback rules remain unchanged, with any migration changes communicated separately. Preserve the original settlement and commission history when matching the transferred account. Use the migration notice for any revised payment terms. Later variations move to NAB’s process after the servicing cut-off, so route those requests through the NAB lending-policy guide and the migration instructions.
Track My Trail’s Clawback Risk lists loans still inside their clawback period, with days remaining and upfront exposure under the applicable rules. Use the lender’s written treatment to reconcile the transferred loan and any later refinancing event.
Refinance and Recovery Classification
Classify the transaction by what happens to the original debt and commission event, then apply that line’s recovery terms. An external refinance discharges the old facility. Record its payout, original settlement and upfront received so the discharge can be assessed against the old line’s clawback schedule.
For a same-line replacement, distinguish an administrative product switch from a discharge and fresh advance. A new account number alone does not establish a fresh commission entitlement. For a cross-line move, retain both providers’ documents and reconcile the old recovery separately from any new payment.
AFG’s guidance on existing Link accounts says existing Link customers remain Link customers. It also states that Link and Retro commission structures and clawback policies are aligned. The rebranding of products for new business does not automatically refinance existing Link loans.
For a top-up, separate the additional advance from the original balance and retain the payment record for each. For split facilities, reconcile the total funded amount across the splits before treating any statement row as a new advance.
In a hypothetical file, an Alpha loan gains a new split to fund renovations. Record the original advance, the additional funds and which portion the commission payment covers. Calculate any later recovery from the relevant payment event and contractual rule, rather than applying the new split’s age to the entire debt.
Income Routes and Evidence
Within AFG Home Loans Retro, the full-document and Lite routes use different income evidence. The Retro niche sheet describes one year’s financials for self-employed applicants and a separate income-confirmation route for Retro Lite. These are Retro provisions and cannot be carried across to Alpha or Options.
For Retro Versa, the product specification requires two of the last three payslips for employed applicants. Additional evidence can be required when income above base salary is needed. Self-employed applicants provide their most recent tax return and financials. The specification allows an Australian business number held for at least one year with industry history and a previous employed role in that industry.
Retro Lite Specialist uses a customer financial declaration with supporting verification. The listed choices include six months of business statements or business activity statements, or an accountant declaration. Retain the verification selected and explain irregular earnings against the actual business activity. A reduced-document route still needs evidence supporting the income relied on.
Credit Conduct and Residency
Retro Versa is for Australian residents and its product specification lists credit impairments as unacceptable. Its assessment by a person does not remove that condition. Obtain the credit report and reconcile declared liabilities and mortgage conduct before selecting Versa.
Retro Lite Specialist is a separate route for self-employed Australian residents with specified credit impairments. Its specification describes permitted minor defaults and older impairments. The niche sheet also identifies mortgage-arrears conditions for the specialist products. Record each event’s amount and age, payment status and the mortgage repayment history against that product’s criteria.
An Australian-resident requirement does not by itself confirm a particular temporary visa is acceptable. Where residency status needs interpretation, include citizenship or visa evidence with the scenario sent to the line’s credit team. Keep the written response with the credit assessment.
Property and Purpose Eligibility
For Retro Versa, the Retro Versa eligibility and lending limits covers purchases and refinances for owner-occupied or investment purposes. It lists a maximum loan of $2 million and a maximum loan-to-value ratio (LVR) of 90%, including lenders mortgage insurance (LMI). The established property’s location must also meet the security guide.
The same specification identifies postcode and security exceptions, including high-density securities and established dwellings on land above one hectare. A headline LVR is therefore only one part of security eligibility. Record the property type and location against the Retro Postcode & Security Guide before relying on that maximum.
Retro Lite Specialist has different limits: its specification lists 80% LVR for metro locations and 75% for non-metro locations, inclusive of the risk fee. Keep the risk fee inside that calculation when working out the borrower’s contribution. Add purchase costs and other funds required to complete. These limits cannot be substituted for Versa’s limit or applied to another AFG Home Loans line.
The Retro niche sheet removes a genuine-savings requirement for the deposit, while the policy expansion guidance still requires verification of funds to complete. AFG’s explanation of the deposit change describes funds held in the applicant’s account or gifted by family. Document the source of the actual contribution.
File Checklist and Exceptions
Build the file checklist for the selected AFG Home Loans product and retain the written decisions that affect its assessment or payment. For a Retro Versa file, keep the following records together.
- Record the product variant and credit provider, plus the applicable product specification and security guide.
- Retain identity and residency evidence, the credit report and explanations for discrepancies.
- Add two of the last three payslips, or the self-employed tax return and financials required for the chosen income route.
- Include supporting evidence for irregular income and the calculation used in servicing.
- Retain the valuation, postcode assessment and evidence of the deposit and funds to complete.
- For a refinance or variation, retain the old account and original settlement record, payout and details of any additional advance.
- Save the lender remuneration schedule, distribution terms and subsequent commission statements against that transaction.
- Record the alternative panel option considered and the reasons for the recommendation.
Send a Retro credit exception to the AFG Home Loans scenario team at scenarios@afghomeloans.com.au. The niche sheet names that team as the scenario contact. Give it the product variant and the exact policy question, with the documents supporting the exception. Retain the written credit clarification and its conditions. A commission exception needs a separate written payment decision from the party administering the remuneration terms.
Use the AFG aggregator profile for network arrangements and the lender-policy directory when comparing another funding line. Before lodging, match the selected product, evidence and exception approval so the file supports the credit decision and the later commission reconciliation.
