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Deposit required.


Danny842003

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So I'm hopefully moving to Oz next year and will be living in a granny flat in my fiancées parents house to begin with.

My fiancé has never owned a home and is as clueless as me as to requirements for a mortgage in oz and her parents English is also very basic which doesn't making asking these sort of questions very easy.

So my questions are how much is normally required for a deposit % wise and hat is the normal term of a mortgage. I'm 29 so age shouldn't really hold me back in that sense.

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Guest DeanBarr

Not that I'm an authority but I know you can't buy straight off and when you go to Australia you start everything from scratch. You don't have a credit profile or a history. None of your bank history or credit profile makes a difference.

 

Deposit varies too. I have seen 5% mortgages and I've seen 20%.

 

There are loads of different mortgage types too.

 

I looked on Westpac I think and got that info.

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So I'm hopefully moving to Oz next year and will be living in a granny flat in my fiancées parents house to begin with.

My fiancé has never owned a home and is as clueless as me as to requirements for a mortgage in oz and her parents English is also very basic which doesn't making asking these sort of questions very easy.

So my questions are how much is normally required for a deposit % wise and hat is the normal term of a mortgage. I'm 29 so age shouldn't really hold me back in that sense.

 

Andrew (on this forum) of Vista should be able to help you on this one, but I think he has said before, a mortgage is not linked to your having or not having a credit history, more on your job security and wages. the banks are really looking at the 20% deposit but there are options.

good luck with your move to OZ.

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Thanks for the replies. 20% is an epically large amount of money for anywhere in Sydney but im

sure we will work something out.

As for the lack of credit my wife (as she will be at this point) will have been living in oz all her life, would it still be as much of an issue that I didn't have a aus credit rating? She's a nurse so has a stable job.

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So my questions are how much is normally required for a deposit % wise and hat is the normal term of a mortgage. I'm 29 so age shouldn't really hold me back in that sense.

 

Hi Danny

 

The typical default term here s 30 years.

 

In relation to deposits these range between lender but typically the minimum requirement for permanent residents is 5% - 10%.

 

For temporary residents generally it is 20% however it may be possible to borrow up to 90% therefore only a 10% deposit required.

 

If borrowing more than 80% then a lenders mortgage insurance (LMI) premium will apply which is/was similar to a High Percentage Loan (HPL) fee in the UK.

 

This insurance is to protect the bank but is paid by the borrower and the higher over 80% the higher the premium however for most first home buyers this insurance allows them to get on the ladder sooner as it may take years to save the 20%.

 

Regards

 

Andy

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