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Australian First Finance

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 5%. 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 maximizes 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, however the banks frequently change the rules.

How much deposit do I need?
As a general rule, you need at least 3% of the property value for a deposit. While monetary gifts from family or friends are a great way to quickly save your deposit, most lenders will want you to show 3 - 6 months of regular savings history before they will approve your loan application. Don’t forget, you will need to consider legal fees, stamp duty and possibly, a one-off Lenders Mortgage Insurance fee (if you are borrowing more than 80% of the property value). At Australian First Finance we can help you structure a savings plan for your deposit, and we can also help you access the government’s First Home Owner Grant to put towards your deposit.

Can I get the First Home Owner Grant?
The First Home Owner Grant is a one-off State Government grant available to first home buyers who intend to live in the home they are purchasing. It is administered by the State Governments and is usually paid at settlement of the loan. Certain conditions do apply, and it’s a good idea to check if you’re eligible first.   Click here  Great Start Grant

How much can I borrow?

How much you can borrow depends on how much deposit you have, your current household income and what monthly expense commitments you have.

What will my repayments be?
Once we have worked out how much you can borrow, we will make sure you can comfortably afford the repayments.
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Australian First Finance is a Corporate Credit Representative (CR No. 396887) of BLSSA Pty Ltd (Australian Credit Licence No. 391237)
Australian First Finance is a member of Australian Financial Complaints Authority  (AFCA) – Member Number 63696 and Australian First Finance is a member of Mortgage and Finance Association of Australasia (MFAA) – Member Number 3166
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