Avanti's near-prime rate has dropped from 4.15% to 3.95%, and will apply to new and existing borrowers able to secure loans from $100,000 to $2 million.
Avanti launched the product last year for customers "with strong profiles" that have struggled to get traditional bank financing.
The lender said its move has been popular in the adviser channel.
“With everything that happened over 2020, there were many borrowers who didn’t match up against the banks’ lending criteria,” said Avanti's Steve Massey.
“Our near prime product helped to bridge the gap and get more people into homes. People were hearing ‘yes’ a lot more, and our introducers appreciated that.”