Mortgage conditions

[davidtiffen]

Hi

 

we have moved to Melbourne in February from uk and have enough savings at the moment for approx 5 - 10 percent deposit.

 

however when we mentioned to our australian bank, because we have a 457 skilled migration visa valid till July 2017 they would probably need 20% deposit as we weren't permenant residents

 

is this normal or would other financial institutions view it differently.

 

probably not looking to get a mortgage for at least another 10 months but was interested to know

 

thanks

[silencio]

I heard it's harder for 'temporary visa holders' like you to find a lender. Under Australian law you're not seen as a migrant just a temporary worker and the banks adhere to this rule in a strict way in order to reduce the risks for them not the risks for you.

[mariewellu]

We also are on a 457 had to put 20% down. We are also applying for PR, once this comes through we would be able to look at releasing the equity so we had just a 10% deposit.

[Andrew from Vista Financial]

Hi

 

we have moved to Melbourne in February from uk and have enough savings at the moment for approx 5 - 10 percent deposit.

 

however when we mentioned to our australian bank, because we have a 457 skilled migration visa valid till July 2017 they would probably need 20% deposit as we weren't permenant residents

 

is this normal or would other financial institutions view it differently.

 

probably not looking to get a mortgage for at least another 10 months but was interested to know

 

thanks

 

Hi David

 

Generally it is the case that most lenders will require temporary residents to have a deposit of 20% plus funds to cover costs eg stamp duty etc.

 

However there have been some fairly recent changes with a number of lenders around this thereby making it possible in situations for temporary residents to borrow up to 90% therefore requiring a deposit of 10% plus costs.

 

You should be aware though that generally if borrowing over 80% loan to value a further cost namely a lenders mortgage insurance (LMI) premium is required, this can in certain situations be added to the mortgage as it is possible for permanent residents/citizens to borrow up to 92% or 97% including lenders mortgage insurance capitalised depending upon lender and in some now rarer cases 95% plus full capitalisation of LMI.

 

However if it is in the case of a temporary resident who is able to go to 90% then it may be unlikely that this additional LMI cost could be added as generally in these cases 90% is the absolute maximum.

 

On another note certain residents in certain occupations such as Doctors for example may be able to benefit from some lenders policies whereby LMI is waived up to 90%.

 

Regards

 

Andy