Jackinabox Posted May 30, 2012 Share Posted May 30, 2012 What is the minimum deposit as a % is required by traditional lenders in Australia? I'm not talking about the 'sub prime lenders' but the high street banks etc. Who are offering the best curent mortgage deals? The UK has experienced a downturn across the board with regards to getting mortgages unless having huge deposits. At the other end of the housing spectrum some are finding it difficult to sell for various reasons. This puts lots of folk in a catch 22 position if needing to sell up to ove on, be it downsizing or before migrating. Bridging finance is difficult to access and expensive when indeed it is possible. Is it possible to get a 100% mortgage in Australia? How soon on arriving in Australia can a mortgage be applied for? Quote Link to comment Share on other sites More sharing options...
Freckleface Posted May 30, 2012 Share Posted May 30, 2012 How long is a piece of string. Usually the major banks still prefer a 20% deposit but will go over that if you pay for mortgage insurance (this insures the loan for the bank but you pay the fee). However they make exceptions and it will always depend on what they can secure the loan on. For instance many years ago we got 100% finance on our second house but they were also able to take security over our first house so they were more than happy to do it. This link to the CBA might help you find some answers. http://www.commbank.com.au/personal/home-loans/wealth-package/add-ons/ Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted May 30, 2012 Share Posted May 30, 2012 Have a word with Andrew Williams at Vista he has helped lots of members with their mortgages. Quote Link to comment Share on other sites More sharing options...
Jackinabox Posted May 30, 2012 Author Share Posted May 30, 2012 How long is a piece of string. Usually the major banks still prefer a 20% deposit but will go over that if you pay for mortgage insurance (this insures the loan for the bank but you pay the fee). However they make exceptions and it will always depend on what they can secure the loan on. For instance many years ago we got 100% finance on our second house but they were also able to take security over our first house so they were more than happy to do it. This link to the CBA might help you find some answers. http://www.commbank.com.au/personal/home-loans/wealth-package/add-ons/ Thanks Freckleface, I have researched the major banks and read the online literature/products etc but if they are anything like the UK banks things change once your actually sat speaking with them. Just wanted some personal experiences and yours sound similar to those available here in the not to recent past. Cheers Quote Link to comment Share on other sites More sharing options...
Jackinabox Posted May 30, 2012 Author Share Posted May 30, 2012 Have a word with Andrew Williams at Vista he has helped lots of members with their mortgages. Thanks M2M Have sent you PM Cheers Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted May 31, 2012 Share Posted May 31, 2012 What is the minimum deposit as a % is required by traditional lenders in Australia? I'm not talking about the 'sub prime lenders' but the high street banks etc. Who are offering the best curent mortgage deals? The UK has experienced a downturn across the board with regards to getting mortgages unless having huge deposits. At the other end of the housing spectrum some are finding it difficult to sell for various reasons. This puts lots of folk in a catch 22 position if needing to sell up to ove on, be it downsizing or before migrating. Bridging finance is difficult to access and expensive when indeed it is possible. Is it possible to get a 100% mortgage in Australia? How soon on arriving in Australia can a mortgage be applied for? Hi Jackinabox I got your PM but thought that I would reply to the thread as it may help some other people. The first part of the question re the minimum deposit requirements will depend on visa status, if temporary residents then generally a 20% deposit is required (this may be higher in very strong cases). If someone is a permanent resident/citizen the minimum deposit will range from 5% - 10%. So essentially the maximum someone could borrow is 95%. In relation to how long before it is possible to obtain a mortgage, then this will also depend on individual circumstances however it is possible if someone has secured employment in a role/industry that they have worked in for a few years consecutively (even if in UK) to obtain a mortgage pretty much straight away subject of course to credit checks, income/liabilities etc etc. Hope this helps. Regards Andy Quote Link to comment Share on other sites More sharing options...
landr Posted May 31, 2012 Share Posted May 31, 2012 Andrew, Could I ask what you think of the Westpac rocket repay home loan? I have tried googling with not much luck finding detailed info and as i'm not in Australia yet I can't get to a branch. How much savings is required to cut the interest on the loan, is it achievable? Thanks Laura Quote Link to comment Share on other sites More sharing options...
Jackinabox Posted June 1, 2012 Author Share Posted June 1, 2012 Hi Jackinabox I got your PM but thought that I would reply to the thread as it may help some other people. The first part of the question re the minimum deposit requirements will depend on visa status, if temporary residents then generally a 20% deposit is required (this may be higher in very strong cases). If someone is a permanent resident/citizen the minimum deposit will range from 5% - 10%. So essentially the maximum someone could borrow is 95%. In relation to how long before it is possible to obtain a mortgage, then this will also depend on individual circumstances however it is possible if someone has secured employment in a role/industry that they have worked in for a few years consecutively (even if in UK) to obtain a mortgage pretty much straight away subject of course to credit checks, income/liabilities etc etc. Hope this helps. Regards Andy Thanks Andy, That is the kind of information that ya dont find on the lenders websites so thanks. Will no doubt be picking your brains over the next few weeks/months. Cheers Quote Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted June 1, 2012 Share Posted June 1, 2012 Hi Jackinabox I got your PM but thought that I would reply to the thread as it may help some other people. The first part of the question re the minimum deposit requirements will depend on visa status, if temporary residents then generally a 20% deposit is required (this may be higher in very strong cases). If someone is a permanent resident/citizen the minimum deposit will range from 5% - 10%. So essentially the maximum someone could borrow is 95%. In relation to how long before it is possible to obtain a mortgage, then this will also depend on individual circumstances however it is possible if someone has secured employment in a role/industry that they have worked in for a few years consecutively (even if in UK) to obtain a mortgage pretty much straight away subject of course to credit checks, income/liabilities etc etc. Hope this helps. Regards Andy Hi Andy If we had say $350,000 put into an Australian bank and we have permanent residency, how long would it take to get say a $150 to 200k loan from them over a ten year pay back period, to buy an house and would it be possible as long as we had jobs? Cheers. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 2, 2012 Share Posted June 2, 2012 Andrew,Could I ask what you think of the Westpac rocket repay home loan? I have tried googling with not much luck finding detailed info and as i'm not in Australia yet I can't get to a branch. How much savings is required to cut the interest on the loan, is it achievable? Thanks Laura Hi Laura The Rocket Repay loan is a fully featured product that allows a lot of flexibility with the ability to offset, it is a good product and WestPac are good to do business with. They are also very flexible with their lending policy in relation to UK expats. In terms of rates, it is competitive but certainly not the lowest out there, there are other lenders that offer the same flexibility with offset and lower rates. When you ask how much savings is required to cut the interest on the loan and is it achievable, sorry Laura I’m not too sure what you mean by this. Are you referring to reducing interest off the loan by having savings in an offset account? Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 2, 2012 Share Posted June 2, 2012 Hi Andy If we had say $350,000 put into an Australian bank and we have permanent residency, how long would it take to get say a $150 to 200k loan from them over a ten year pay back period, to buy an house and would it be possible as long as we had jobs? Cheers. Hi Jim That’s a great deposit and the lenders will definitely look favourably towards you with this type of deposit. In relation to how long it would take will depend on your circumstances. However looking at it solely from an employment perspective, if you are looking at getting employment straight away and you worked in the same industry/occupation in the UK for a couple of years or more then generally it is possible to obtain a mortgage pretty much straight away also. Andy Quote Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted June 2, 2012 Share Posted June 2, 2012 Hi Jim That’s a great deposit and the lenders will definitely look favourably towards you with this type of deposit. In relation to how long it would take will depend on your circumstances. However looking at it solely from an employment perspective, if you are looking at getting employment straight away and you worked in the same industry/occupation in the UK for a couple of years or more then generally it is possible to obtain a mortgage pretty much straight away also. Andy Cheers Andy, much appreciated. Quote Link to comment Share on other sites More sharing options...
Rupert Posted June 2, 2012 Share Posted June 2, 2012 Hi Jackinabox I got your PM but thought that I would reply to the thread as it may help some other people. The first part of the question re the minimum deposit requirements will depend on visa status, if temporary residents then generally a 20% deposit is required (this may be higher in very strong cases). If someone is a permanent resident/citizen the minimum deposit will range from 5% - 10%. So essentially the maximum someone could borrow is 95%. In relation to how long before it is possible to obtain a mortgage, then this will also depend on individual circumstances however it is possible if someone has secured employment in a role/industry that they have worked in for a few years consecutively (even if in UK) to obtain a mortgage pretty much straight away subject of course to credit checks, income/liabilities etc etc. Hope this helps. Regards Andy Andy would a 95% mortgage mean a high mortgage indemnity insurance premium? We have a good income but no deposit as cash tied up in the UK house, so it would be quite a long time before we could save up a 20% deposit. Quote Link to comment Share on other sites More sharing options...
landr Posted June 2, 2012 Share Posted June 2, 2012 Hi Laura The Rocket Repay loan is a fully featured product that allows a lot of flexibility with the ability to offset, it is a good product and WestPac are good to do business with. They are also very flexible with their lending policy in relation to UK expats. In terms of rates, it is competitive but certainly not the lowest out there, there are other lenders that offer the same flexibility with offset and lower rates. When you ask how much savings is required to cut the interest on the loan and is it achievable, sorry Laura I’m not too sure what you mean by this. Are you referring to reducing interest off the loan by having savings in an offset account? Yes thats what I am talking about. How does the savings in the offset account benefit the home loan? You are getting bombarded with questions now! Thanks so much for the info! Laura Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 3, 2012 Share Posted June 3, 2012 Andy would a 95% mortgage mean a high mortgage indemnity insurance premium? We have a good income but no deposit as cash tied up in the UK house, so it would be quite a long time before we could save up a 20% deposit. Hi Rupert Yes it would, lenders mortgage insurance (LMI) is payable over 80% and is tiered the higher the loan to value (LVR) percentage and also the higher the house price. It can in some cases be capped fully (but only in limited case) or capped to 97% LVR (quite a few lenders offer this). Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 3, 2012 Share Posted June 3, 2012 Yes thats what I am talking about. How does the savings in the offset account benefit the home loan? You are getting bombarded with questions now! Thanks so much for the info! Laura Hi Laura Any funds that are in the offset savings account are offset against the loan balance essentially meaning that you are only paying interest on the loan balance less the funds in the savings account. If you are on a repayment mortgage you continue to make the same repayments however you are then paying off more capital than you would otherwise and thus the end result is that the loan is being paid off quicker. Any monies in the offset account are doing the job but obviously the more in there the better the outcome. Quote Link to comment Share on other sites More sharing options...
Rupert Posted June 3, 2012 Share Posted June 3, 2012 Hi Rupert Yes it would, lenders mortgage insurance (LMI) is payable over 80% and is tiered the higher the loan to value (LVR) percentage and also the higher the house price. It can in some cases be capped fully (but only in limited case) or capped to 97% LVR (quite a few lenders offer this). Is LMI very expensive? If I wer to buy in near future I would need a mortgage of about $800k. I am not sure what you mean about the capping at 97%. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 3, 2012 Share Posted June 3, 2012 Hi Rupert Here are a couple of examples, if someone were buying a property for $800,000 and wanted to borrow the maximum available. If using a lender that will allow the LMI to be fully capitalised: 95% mortgage = $760,000 LMI = $30,087 Total mortgage = $790,087 (LVR = 98.76%) Therefore $40,000 (inc LMI) own funds required (in addition to any buying costs, stamp duty etc) If using a lender that will allow LMI to be capped to max 97% the figures would be: 93.5% mortgage = $748,000 LMI = $28,000 Total mortgage = $776,000 (LVR = 97%) Therefore $52,000 (inc LMI) own funds required (in addition to buying costs) Quote Link to comment Share on other sites More sharing options...
bungeeman Posted June 3, 2012 Share Posted June 3, 2012 Andy, is there a Stamp Duty Threshold? And also what is Land Tax about? Thanks Ben Quote Link to comment Share on other sites More sharing options...
cki2011 Posted June 3, 2012 Share Posted June 3, 2012 Hello Andrew I would like some advice if it is ok with you. We are looking to move to Perth in the next 6 months or so we have our house we live in which has £150,000 equity and another house we rent out near by which has £35,000 equity. (estimated at the current property situation) My question is would we be better renting both houses out in the Uk and buying in Oz or selling and using the money to buy in Oz or could we borrow in Oz against the houses in the Uk or is that not possible. And do you know what % tax we would pay if we rented them out in the Uk is it worth doing. Thanks Dave & Carmel Quote Link to comment Share on other sites More sharing options...
landr Posted June 3, 2012 Share Posted June 3, 2012 Hi Laura Any funds that are in the offset savings account are offset against the loan balance essentially meaning that you are only paying interest on the loan balance less the funds in the savings account. If you are on a repayment mortgage you continue to make the same repayments however you are then paying off more capital than you would otherwise and thus the end result is that the loan is being paid off quicker. Any monies in the offset account are doing the job but obviously the more in there the better the outcome. Thanks so much! Something to think about more Laura Quote Link to comment Share on other sites More sharing options...
Petals Posted June 3, 2012 Share Posted June 3, 2012 When borrowing make sure you allow for the stamp duty, when settlement takes place the lender will retain the stamp duty and registration fees from the loan provided to you. I have had many clients in a bit of a pickle over this. Also be careful when buying house and land and settling the land first, the mortgagee will not provide the full amount for the land and you will have to make up any shortfall. Deals have to be very carefully looked and and understood and remember the person at the bank or other lending authority is selling a product and you need to be completely sure what you are getting into. Offset loans are good for people who are good money managers, if people are not good money managers, they are not the way to go in my opinion. Quote Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted June 4, 2012 Share Posted June 4, 2012 For Geordielass, just re-reading it, he says a mortgage, but if you pm him, he will tell you about a loan. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 5, 2012 Share Posted June 5, 2012 Andy, is there a Stamp Duty Threshold? And also what is Land Tax about? Thanks Ben Hi Ben Stamp duty is state specific, I'm in SA which I believe is one of the highest for stamp duty (government fees all up are around 5% here!!). Some states offer stamp duty exemptions for first home buyers or specific property types in certain areas etc. Regarding land tax, again this is state specific but generally will not apply if the property is to be the principal place of residence (PPOR). Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 5, 2012 Share Posted June 5, 2012 Hello Andrew I would like some advice if it is ok with you. We are looking to move to Perth in the next 6 months or so we have our house we live in which has £150,000 equity and another house we rent out near by which has £35,000 equity. (estimated at the current property situation) My question is would we be better renting both houses out in the Uk and buying in Oz or selling and using the money to buy in Oz or could we borrow in Oz against the houses in the Uk or is that not possible. And do you know what % tax we would pay if we rented them out in the Uk is it worth doing. Thanks Dave & Carmel Hi Dave & Carmel I cannot really give you the answer to whether you should rent or sell your UK properties I'm afraid. However to answer another of your questions, I am not aware of any lenders in Australia that would lend you funds against your UK property. Maybe consider pulling out some equity now from a UK property so as to use for a deposit here in Australia. You should understand all of the implications of this before you go ahead though, including the implications of what it may do to your lending capacity here in Oz. The tax side of things is not totally straight forward however assuming you will be permanent residents (the situation differs for temporary residents) then your worldwide income is taxable in Australia therefore the income will have to be declared and taxed (less allowable deductions) at your marginal tax rates http://www.ato.gov.au/content/12333.htm. If you have paid tax to UK HMRC then generally you will get a tax credit here in Oz. Quote Link to comment Share on other sites More sharing options...
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