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 charges varies, the amount of interest charged each month may also vary. The formula is- Balance x interest rate %. Divided by 365 days in a year x number of days in the current month.

WHAT IS YOUR BORROWING CAPACITY
Your borrowing capacity differs from lender to lender. To get an indication of how much you can borrow please contact Ambition and we can process your details through our calculators to advise you of your maximum borrowing capacity.

WHAT IS THE MINIMUM DEPOSIT REQUIRED
There are some loan products that allow you to borrow up to 97% of the property value. In this case you only need to be able to cover the other costs associated with purchasing a property such as stamp duties, legal costs etc. If you are eligible for the First Home Buyers Grant you are also entitled to concessions on stamp duties. Speak to Ambition and they will complete a loan summary outlining the funds required as well as detailing any associated fees and charges.

WHY WOULD YOU TAKE OUT AN INTEREST ONLY LOAN
This is a loan used mainly by property investors. It allows the borrower to pay only interest 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.

DOES AMBITION LEND FOR COMMERCIAL PROPERTIES?
Yes, Ambition financial group deal with a panel of lenders that specialize in commercial/ industrial properties .

CAN YOU GET A LOAN IF YOU HAVE CREDIT DEFAULTS?
Yes, Ambition has a range of Non conforming lenders that are suitable for different levels of credit impairment. Speak to Ambition to find out what loan fits your circumstance.

IF I’M SELF EMPLOYED WHAT LOAN OPTIONS ARE AVAILABLE TO ME?
There are 3 basic options available for self employed borrowers.

1. Full Doc – Provide the last 2 years individual and business financials.
2. Low Doc – Ideal for self employed borrowers that have had there ABN for a minimum of 2 years but don’t have their financials completed.

WHAT HAPPENS IF INTEREST RATES INCREASE OR DECREASE?
If you have a variable rate loan and the interest rates go up or down, your minimum repayments will be recalculated based on the new rate. You will usually be advised in writing on the new minimum repayment and the date it becomes effective. If you have a fixed rate loan your repayments will not change in the period of the fixed rate agreement.

WHAT IS MORTGAGE INSURANCE?
Lenders Mortgage Insurance (LMI) is usually levied if the loan required is more than 80% of the value of the property. It is paid by the borrower and covers the lender in the event of loan default or if the house is sold for less than the amount owed under the mortgage. If the loan is a low documentation loan, the LMI normally starts at 60% depending on the lender. Please note there are often options available to borrow to 85% without mortgage insurance depending on the scenario.

WHAT IS A DEPOSIT BOND?
A deposit bond is a simple cost effective way to cover the deposit on a property purchase when you do not have immediate access to the necessary cash deposit. The value of the bond is equal to the required deposit eg: 10 %. Please note to apply for a deposit bond you require a loan approval with no material outstanding conditions. ie: subject to valuationis acceptable.