The recent partnership of Australian Finance Group with National Australia Bank is expected to create more competitive home loan choices, as demand continues to surge, the former’s co-founder Brett McKeon was quoted as saying in The West Australian.

With the tie-up in place, NAB-owned wholesale funder Advantedge would help AFG offer “very aggressive” variable and fixed- rate loans starting December.

AFG loans were reportedly having a hard time in overcoming other attractive deals from big banks prior to the new partnership, even if the group has been processing an “ever rising number of mortgages”.

AFG saw a 17% rise in profits to $17.9 million last financial year.

Plans of an initial public offering were shelved in 2007 following the global financial crunch. Despite this, McKeon said AFG will not dismiss the idea of an IPO.

"We're always thinking about it . . . (but) nothing has materialised to this point," he said.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now