Q.  Isn’t the interest rate the most important aspect of my loan?

A.  No, in fact the structure of a loan is far more important than the interest rate.  With the correct structure and competitive interest, the cost of the loan can be minimised and if managed properly, a mortgage can in fact be paid off relatively quickly.  With the right structure, management and commitment, the overall cost of the loan can be dramatically reduced.  So don't get mislead by smooth advertising promoting cheap interest rates - the correct structure for you will give you the best opportunity to pay off your loan as quickly as possible and thus maximise your savings.  This is simple mathematics and not "smoke and mirrors" – contact us, so that one of our consultants can develop a workable strategy to set you free from debt.

Q.  How competitive is the interest rate charged by First Australian compared to banks?

A.  Very competitive, compared to bank loans.  In fact, the structure of First Australian loans means that the overall cost of borrowing through First Australian is less and can be substantially less than normal bank loans, provided the loan is managed correctly by the borrower. 

Q.  What determines if interest rate on my loan goes up, or down?

A.  Once the loan is settled, interest charges are determined by:

• The “Cash Rate” set by the Reserve Bank of Australia; and
• The market cost of raising mortgage based funds

Q.  Can I fix the interest rate on my First Australian loan?

A.  Yes, you can fix any portion of your loan, before, or after settlement.  A decision to fix your loan, or any portion of your loan needs to be taken cautiously.  Fixed loans do not allow additional deposits and “break costs” are charged if the fixed portion is paid out early.  This can often cost a lot more than had the interest remained on the variable rate.  You should never fix a loan if you think the property may be sold before the end of the fixed rate period, or if you may have the chance of reducing the fixed portion, before it has expired.

Q.  What are Interest Rates likely to do in the short to medium term in Australia?

A.  As part of our market update analysis for our Clients, we have prepared a detailed overview of facts and opinions surrounding interest rates and the likely impact on Borrowers and the First Australian Client Family.  This is only available to First Australian Clients.