Why Retro Lite is right for self-employed borrowers

AFG Home Loans’ Retro Lite and Link Lite products have stepped up, delivering stronger serviceability outcomes and longer-term flexibility for self-employed borrowers who don’t always fit the traditional lending mould.

With enhanced Interest Only options, improved rental income treatment, and higher maximum LVRs, these updates are designed to boost borrowing capacity, smooth cashflow, and help brokers say yes to more complex self-employed scenarios.

Retro Lite Policy Updates

• 10-year Interest Only terms now available under Retro Lite, doubled from the previous five years, giving clients greater cashflow certainty and long-term repayment flexibility.
• Improved rental income treatment, with shading reduced from 20% to 10%, materially increasing serviceability and borrowing power.
• Strong serviceability assessments that take a realistic view of business income and expenses.
• Negative gearing benefits further support servicing strength for investment clients.
• Maximum LVR increased to 90% (inclusive of LMI), allowing self-employed borrowers to purchase or refinance sooner.
  
  

When Retro Lite isn’t quite the right fit

For self-employed customers with more complex credit profiles, Link Lite provides an alternative pathway with additional flexibility, including:

• Credit impairments or past mortgage arrears
• Discharged bankruptcy
• Shorter-term ABNs
• Unlimited debt consolidation requirements
• A highly competitive risk fee structure

Together, Retro Lite and Link Lite ensure brokers have solutions across a broader spectrum of self-employed borrower needs.

What this means for brokers

These enhancements give brokers greater confidence when structuring deals for self-employed customers, particularly investors, by improving serviceability, extending IO options, and removing unnecessary friction around documentation and income assessment.

The result is more approvals, better client outcomes, and stronger long-term lending solutions, without compromising on credit integrity.

Have a scenario?

If you’d like to workshop a scenario with one of our dedicated credit specialists, please use this template and send it to scenarios@afghomeloans.com.au.

For anything else, don’t hesitate to speak with your AFG Home Loans BRM.