    |
|
Frequently Asked Questions Below is a list of answers to the questions most commonly asked by customers. How is interest Calculated? Interest is calculated on your outstanding balance on a daily basis and charged to your home loan account once a month. For this reason, and because of the number of days between interest charge variations, the amount of interest charged each month may also vary. To calculate monthly interest, the balance is multiplied by the interest rate %, then divided by 365 days in a year and multiplied by the number of days in the current month. What is the minimum deposit required? In some circumstances we may be able to look at a deposit as low as 3%. However, there are various factors to be considered before we can advise what deposit you need in your own individual circumstances. How much can I borrow? Your borrowing capacity differs from lender to lender. Why would I take out an "Interest Only" loan? This is a loan used mainly by property investors. It allows the borrower to pay only interest for an agreed period instead of principal and interest (i.e. the principal balance remains the same during the "interest only" period). This maximises the investors tax deductions whilst also freeing up cash flow for other investing opportunities. Can we use the First Home Owners grant as part of our deposit? In some circumstances you may be able to use the First Home Owners grant as part of your deposit. Australian First Finance is a full member of the Mortgage & Finance Association of Australia (MFAA). 26 Banks - Over 1000 Loan Facilities - ONE Conversation |