AFG Home Loans Bright — What you need to know 

Construction, Fixed Loans, Repayments, Residency Status, Self-Employed

AFG Home Loans Bright is the latest home loan from AFG Home Loans released in August 2023. To help those potentially looking to take out a Bright home loan or those who are already Bright customers, we’ve compiled some FAQs to help you get to know Bright a little better. 

Q. Do you offer interest only (IO) loans? 

A. Yes, we do, up to a maximum of 5 years. The loan must revert to principal and interest repayments for the remaining term. 

Q. Do you offer fixed interest loans? 

A. Yes, we do, for 1-3 years duration. 

Q. What are the minimum and maximum loan sizes? 

A. The minimum loan size is $150,000 and the maximum is $2,000,000. 

Q. What is the maximum loan term? 

A. Up to 30 years. 

Q. Can you lend to self-employed individuals? 

A. Yes, we do, and we also have a simple alternative documentation (“Alt Doc”) approach to verifying self-employed income. 

Q. How does a House and Land construction loan work? 

A. Our home loan has been specifically designed to support house and land construction loans. Funds are advanced by progressive payments and are released on a “cost to complete” basis. The Lender pays these staged progress payments to the builder of the home as the construction of the house is completed. The Lender undertakes an inspection at each stage to ensure works are satisfactorily completed before releasing funds.  

A simple example excluding costs would be as follows: Land Cost $250,000, Cost to build the house $350,000. Total Value of house and land is therefore $600,000. Maximum LVR is 70%, and therefore the maximum loan amount is $420,000. We would ask the Borrower to first pay their 30% deposit ($180,000) towards the land price of $250,000. The Lender would then lend the remaining $70,000 required to settle the land and 100% of the build cost of $350,000. This would usually be done in 5 progressive payments. The Lender will arrange inspection of the construction progress for the subject property and advance the progress payments on the borrower’s behalf at each stage. 

Q. Will you look at my residency status? 

A. Yes, however we accept both temporary (those with a visa) and non-residents of Australia. 

Q. Are there any age restrictions? 

A. No, we do not discriminate as to an applicant’s age. However, we must ensure the applicant is able to service and repay the loan. 

Q. How long does processing take after I have submitted the required documents? 

A. Conditional Approval is normally given within 48 hours and formal approval within 14 days of all documents being submitted. 

Q. Can I make advance payments and is there any fees? 

A. There is no penalties or fees for early repayment of variable rate loans. Break Fees may apply for early repayment of fixed rate loans. 

Q. How do I make monthly loan repayments? 

A. You can make monthly loan repayments via direct debit from an Australian bank account or from the Offset Facility. We also accept BPAY as a complementary repayment option. 

Q. Where can I find out the balance of my loan? 

A. Online through the Internet Banking portal

Q. Can I send funds to my Offset Facility from overseas? 

A. No.