FAQ

The AFO team’s industry knowledge and experience allows them to provide answers to their clients’ questions during consultation. Please note the below frequently asked questions and associated answers for your review and clarity about the process.

What type of security is needed?

AFO will only lend against real estate. The combined Loan to Value Ratio (LVR) for all funds advanced must be no greater than 80%.

What is the maximum loan terms?

The maximum loan term is 12 months with possible option to renew for additional term of 12 months.

Can the arrangement fee be capitalized into the loan?

Yes, the arrangement fee can be added to the loan.

What are the minimum and maximum amount of funds that AFO lends?

The minimum loan amount AFO will advance is $25,000. The maximum loan amount is $1,000,000.

Are any upfront fees incurred during the application process?

No fees are incurred during the application process. Once the loan has been approved the applicant will be responsible for the cost of an appraisal.

Are there any setup fees associated with receiving a loan from AFO?

All third party out-of-pocket costs and expenses incurred by AFO in establishing and operating this loan, plus the Arrangement Fee, are for the account of the Borrower.

Why does AFO require an exit strategy?

This allows AFO to understand how the loan will be repaid. We are responsible lenders and as such must satisfy ourselves that the loan can be repaid without causing hardship to our clients.

Should the borrower seek legal advice on the Loan?

AFO will insist that independent legal advice is obtained, which is to protect both the borrower and the lender.

How long does it take to approve a loan?

Once the complete application has been received, a verbal approval can be given over the phone. A formal Letter of Offer is generally provided within 48 hours. The speed and accuracy of the information provided will greatly affect the time it takes to settle a loan. AFO aims to settle loans in the shortest practical time.

Is there a cost to extend the loan?

To extend the loan for an additional term, another arrangement fee will be applicable.

My credit is not great. Will AFO lend to someone with a low credit score?

Yes, as long as the underlying value is in the real estate to be mortgaged.