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About AFG

Established in 1994, AFG is one of Australia’s leading mortgage broking firms, and has an extensive network of brokers around the country through which it exclusively provides its home loans. This approach gives AFG’s customers more flexibility and choice when it comes to the home loan they take out, and is unique among Australian home lenders.

AFG home loans at a glance

Offset accounts available
Redraw facilities available
Line of credit available
Split rate option available
Green loan available
Ability to make extra repayments
Internet banking available
Salary crediting
Choice of repayment flexibility
Refinance available
Services first home buyers

What types of home loans does AFG offer?

AFG currently offers the following types of home loans:

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Who does AFG lend to?

AFG offers home loans that may suit first home buyers, refinancers, self-employed individuals, those looking for bridging finance between their current home loan and their next loan, property investors, those looking to build a new home on vacant land, and more.

However, when it comes to what types of borrowers AFG lends to, prospective borrowers should know a few key things.

The first is that AFG has a maximum allowed loan-to-value ratio (LVR) of 80%, meaning AFG will require you to pay lenders mortgage insurance (LMI) if your saved deposit is less than 20% of your total proposed loan size. Additionally, depending on the suburb a property’s located in, AFG may require a lower maximum LVR in order to reduce the perceived risk of lending against a property in that area.

AFG also likely won’t approve your home loan application if you don’t have the capacity to repay your proposed home loan at a rate 3% higher than the advertised interest rate. This is because the Australian Prudential Regulation Authority (APRA) requires all lenders to assess an applicant’s ability to service their proposed home loan in the event of interest rate hikes.

Can I get an AFG home loan as a first home buyer?

Yes, AFG lends to prospective first home buyers. While AFG doesn’t have a particular home loan product tailored specifically for first home buyers, they have several tools and resources available to first home buyers designed to help them navigate the process of buying a home for the first time.

Does AFG offer the Home Guarantee Scheme?

No, AFG is not a participating lender in the Home Guarantee Scheme. The Home Guarantee Scheme helps certain home buyers secure a home loan with a deposit smaller than 20%, without having to pay lenders mortgage insurance (LMI).

The Home Guarantee Scheme is made up of three separate initiatives:

  • The First Home Guarantee, which allows eligible first home buyers to purchase a home with a deposit of as little as 5%.
  • The Family Home Guarantee, which allows eligible single parents to purchase a home with a deposit of as little as 2%, regardless of whether they’re a first home buyer or not.
  • The Regional First Home Buyer Guarantee, which allows eligible first home buyers to purchase homes in regional areas with a deposit of as little as 5%.

Applications for one of these schemes can only be made through a participating lender or a mortgage broker acting as an authorised representative of a participating lender. So, if you’re looking to apply for the Home Guarantee Scheme, you may have to apply for a home loan with a different lender.

Can you refinance your home loan with AFG?

Yes, you can switch your home loan to AFG from another bank by refinancing. Borrowers refinancing their loan with AFG can choose a fixed or variable rate to switch to, and may be able to add a redraw facility and/or an offset account to eligible loans.

Does AFG charge Lenders Mortgage Insurance (LMI)?

AFG advises that they require a borrower to take out LMI when there is an increased risk associated with the loan in question. They will typically charge LMI if the borrower’s deposit represents less than 20% of the total loan value.

However, if the security property is located in a riskier suburb, AFG may require you to pay LMI if your LVR isn’t less than 70%.

What home loan fees does AFG charge?

AFG may charge upfront application and processing fees on some of its home loans, as well as a monthly fee for borrowers with an offset account. Additionally, you may incur a fee for breaking or otherwise closing a fixed rate loan before the end of its fixed rate period.

Interested in a AFG home loan? Compare with us today!

If you’re interested in taking out an AFG home loan, make your first step using our home loan comparison tool to compare them against a wide range of other home loans from nearly 20 other lenders!

We’ll only show you home loans you’re eligible to apply for, and our team of Home Loan Specialists is on hand to assist you with any questions you may have. If you find the home loan you think is the one for you, you can apply for it online on the spot without having to fill out any physical forms.

So, if you’re in the market for a home loan, compare your options today with Compare the Market!

Meet our home loans expert,
Stephen Zeller

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.

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