Avanti Finance shaves 0.25% off variable rate

Offer timed for spring, non-bank lender says

Avanti Finance shaves 0.25% off variable rate

Non-bank lender Avanti Finance has cut the price of its standard variable home loan rate for homebuyers with good credit and deposits of at least 20%.

Borrowers with an LVR of less than or equal to 80% who are considered to be “near prime” can receive a 25-basis point discount on its near prime base interest rate for a period of two years. 

The offer, in place from September 1, is available for new applications received up to November 30, 2023.  It is available to both owner occupiers and investors, for purchases and refinances.

On Friday, the non-bank lender’s near prime variable rate was 9.15%, which with a 0.25% discount, reduces the rate to 8.90%.

Avanti Finance general manager property Ian Boyce (pictured above) said that the non-bank lender recognised that spring was a typically busier time for real estate and wanted to provide an attractive offer for home buyers.

REINZ August figures show increased sales counts month-on-month and year-on-year, while QV September quarter figures show the average home value increased by 0.9%, QV operations manager James Wilson commenting that “signs of life” were starting to appear.

“We’ve come off a pretty flat, negative market, people are now saying that green shoots are starting to appear and we want to support those customers looking to buy a home,” Boyce said.

The offer caters for those regarded by Avanti Finance as being good customers from a credit perspective, he said.

Acknowledging that Avanti Finance worked with a range of customers who may not fit main bank criteria, Boyce said that the special offer brought the non-bank lender “a little closer” to variable rates offered by major banks.

“We want to make it clear that we’re there to support all customers in their homebuying journey,” he said.

Mortgage advisers continue to represent important channel

Boyce confirmed that the offer is available to home loans through mortgage advisers, which represent a significant channel for Avanti Finance.

As an adviser-led business, the non-bank lender recognises the important role that advisers play in supporting customers, he said.

“Looking at the percentage of loans being done through mortgage advisers across the industry overall, it just continues to grow,” Boyce said.

What levels of activity are you noticing in the property market? Share your thoughts in the comments section below.