Mortage on a 457 question..

[SiandSuz]

Hey, so me and my partner have just had our 457 approved and we really want to get our foot on the property ladder, we've spoken to a few people and they have told us that usually you need 30% deposit for a house deposit whilst on a 457 visa.. Which in Perth equates to roughly 100-120k (which we don't have).

So here's my question.. Is there a way of getting a mortgage on a house without a 30% deposit and with roughly 15% deposit of 50k?

 

Thanks again guys

 

Simon.

[Andrew from Vista Financial]

Hi Simon

 

 

Generally you will require a 20% deposit as a temporary resident however it may be possible to get a mortgage with only a 10% deposit depending on your circumstances as there has been some relaxing of the rules for certain temporary visa holders (inc 457) who meet certain criteria with a couple of lenders.

 

 

Regards

 

Andy

[SiandSuz]

Hey Andy, thanks for the reply. 20% sounds good.. 10% even better, any ideas who would offer this sort of mortgage? Me and my partner both have well paid full time jobs so I'm guessing that will help?

 

Thanks again Andy.

[Rupert]

Why do you want to get a foot on the housing ladder when you only have a temporary visa?

[SiandSuz]

Hi Rupert, yeah we're on a temporary visa which lasts 4 years but we plan on obtaining PR before the 4 years is up and don't want to waste time and money paying rent on a house that isnt ours when that money could go towards paying off a house of our own.

 

Thanks

[CollegeGirl]

Hi Rupert, yeah we're on a temporary visa which lasts 4 years but we plan on obtaining PR before the 4 years is up and don't want to waste time and money paying rent on a house that isnt ours when that money could go towards paying off a house of our own.

 

Thanks

 

I think Rupert's concern just comes from the fact that we seem to have someone on this board every week posting about how their company promised them PR a couple of years into their 457, but then made them redundant a few weeks or months after they arrived in Australia. A 457 doesn't guarantee permanent residency. It's a gamble.

 

And if you had the worst possible luck and were laid off, you'd have only 90 days to secure another job to sponsor you or leave the country. Not much time to figure out what to do with a house.

Edited October 24, 2013 by CollegeGirl

[Rupert]

Hi Rupert, yeah we're on a temporary visa which lasts 4 years but we plan on obtaining PR before the 4 years is up and don't want to waste time and money paying rent on a house that isnt ours when that money could go towards paying off a house of our own.

 

Thanks

 

Yes as college girl said, I am alluding to the frequent stories where it goes wrong for the 457 visa holder. Of course it can go right too, but in the last week I have read two threads from people who have been made redundant within months of arrival and face having to leave. Your temporary visa does not last for four years, it lasts for as long as your employer chooses.

 

There are substantial costs associated with buying a house, like stamp duty (very high here in most states) and mortgage interest and mortgage indemnity premium if you don't have the 20% deposit. It is not like everything you spend goes into your asset. If you had to sell up quickly you could end up being more out of pocket than the total cost of rent paid.

 

I just advise caution, you seem to be rushing, only just got temporary visa and already thinking of mortgages, you might not even like it here! Rent is a living cost, I am not used to renting either, but if I think of it in terms of a living cost like any other and think it is not forever, then it becomes more palatable.

Edited October 24, 2013 by Rupert

[wrussell]

I have read two threads from people who have been made redundant within months of arrival and face having to leave. Your temporary visa does not last for four years, it lasts for as long as your employer chooses.

 

Dead right.

I have distressed 457 visa victims contacting me constantly.

In my professional opinion this is not the visa for a family.

I most strongly advise prospective 457 applicants not to rely entirely on advice from prospective employers or their representatives and I advise them to take professional advice, sooner rather than later,about applying for PR, sooner rather than later.

[Xenon4017]

There are substantial costs associated with buying a house, like stamp duty.

 

And no stamp duty concession for first time buyers if you're not PR? (I think)

[SiandSuz]

Thanks for all te feedback guys, I appreciate it a lot. I'm 100% sure that I'd like to live here, the past 14 months here have been good, a struggle at times but in a good way.. So I'm probably best waiting till I have PR and then getting a mortgage? How long is it till I can apply for PR? Thanks again guys, awesome feedback!!

[Rupert]

Thanks for all te feedback guys, I appreciate it a lot. I'm 100% sure that I'd like to live here, the past 14 months here have been good, a struggle at times but in a good way.. So I'm probably best waiting till I have PR and then getting a mortgage? How long is it till I can apply for PR? Thanks again guys, awesome feedback!!

 

You don't have to wait any length of time to apply for PR. Many of us get PR before we ever set foot in Australia. If you meet the criteria for one of the PR visas you can apply for it.

[SiandSuz]

Even if both of our occupations are on list 2 and not on list 1?

[Rupert]

Even if both of our occupations are on list 2 and not on list 1?

 

Yes it is still possible, you would just need to find a sponsor - state or employer.

[SiandSuz]

We already have a employer sponsorship but when it comes to PR I thought you had to be in the country for a certain length of time or have been working with the employer for a certain time length before PR could be issued?

Thanks Rupert

[NickyNook]

We already have a employer sponsorship but when it comes to PR I thought you had to be in the country for a certain length of time or have been working with the employer for a certain time length before PR could be issued?

Thanks Rupert

 

No. Employers can sponsor for PR immediately via the ENS186 visa. Sponsorship via the temporary 457 is not mandatory.

[Phoenix16]

My comment possibly isn't very valid as my experience was under the old rules of pre July 2012, however at that time the GFC was such that there was no possibility of a mortgage without at least 20% deposit and even then not particularly favorable terms. We came on a 457 in 2010, no previous aspirations to move to OZ, hubby was approached for a job after the company spent 18 months looking in OZ, it got critical, nevertheless he underwent a rigorous process even though they came to him, ultimately they've turned out to be the most loyal employers ever, we got pr within 12 months due to his salary and status, went thro in 7 weeks. BUT I have learned alot and I would say to any prospective 457.s there has to be utter trust between both parties, there is no doubt that in the current climate my Hubby's employers would've increased his salary (beyond tax levies) to pay the new school fees, it would have simply been a minor negotiating thing, these are things you need to considered, does your new employer need you as much as you need them, whose terms is it really on??? Just to add the final knock, we were flown out business class, all of us with return flights to UK annually for all the family as part of the 457 package, I'm not saying we were luckily, it just gave us the confidence to take the chance, I'm not suggesting you demand this but in your own way, look at the commitments that give you confidence....

[Rupert]

We already have a employer sponsorship but when it comes to PR I thought you had to be in the country for a certain length of time or have been working with the employer for a certain time length before PR could be issued?

Thanks Rupert

 

No you do not. As I said, many people are PR before they ever set foot in the country.