jac2011 Posted April 18, 2015 Share Posted April 18, 2015 Hi Andrew, Just a quick query. We have an ANZ account, which we put an initial setting up amount in last summer. We are now going to spend the next 5 months transferring all our savings over so we cannot access them. Will this assist our credit history in Australia? One of the first things we want to do, approximately 9-10 months after arriving is purchase a property. We are hoping to both have 6 months work experience and a good credit history by this point as we do not have any debts, nor do we want any. Is there anything we can be doing to make that position stronger? As all our savings are going into the move we will only have around 5-10% deposit plus costs so we want to make our situation as good as possible. Thanks Julie Quote Link to comment Share on other sites More sharing options...
CameronsDad Posted April 18, 2015 Share Posted April 18, 2015 Jac, yours is a very similar position to ours, so I will be interested to see any advice you may be given. Quote Link to comment Share on other sites More sharing options...
Bungo Posted April 18, 2015 Share Posted April 18, 2015 Moving savings is not going to help your credit history, savings are nothing to do with credit history, which is about ability and tendency to repay debt.. You cannot do anything about your credit history until you get to Australia and start building one. I would recommend that you just send your savings when it makes sense exchange rate wise. Then get at least a visa debit or ideally a visa credit when you arrive and if you have an income and some savings, I am sure getting a mortgage will not be that hard for you. Quote Link to comment Share on other sites More sharing options...
srh82 Posted April 18, 2015 Share Posted April 18, 2015 @jac2011 Credit ratings don't work the same here. Think more about exchange rates as previous poster has said and getting a good rate when you transfer money over. On the mortgage side, you need 20% deposit to avoid the mortgage insurance levy on your repayments which is an additional 2% on the mortgage interest rate! Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted April 20, 2015 Share Posted April 20, 2015 Hi Julie As said above credit history will not be impacted based on your savings. Essentially when you apply for a mortgage if you have no credit this will not hinder your case. Credit scoring is used with most lenders nowadays and this is where it might assist (well at least being an existing customer anyway) especially if looking at borrowing a high Loan to Value (LVR). There really is not too much you can do to assist your case beforehand other than to ensure all liabilities are kept up to date and the more savings you have the stronger the case is. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted April 20, 2015 Share Posted April 20, 2015 @jac2011 Credit ratings don't work the same here. Think more about exchange rates as previous poster has said and getting a good rate when you transfer money over. On the mortgage side, you need 20% deposit to avoid the mortgage insurance levy on your repayments which is an additional 2% on the mortgage interest rate! Is this through a specialised lender? Generally the rate is the same regardless of whether Lenders Mortgage Insurance (LMI) is payable. You may mean adds on around 2% of the LVR ie someone looking to borrow 95% can add the LMI on up to 97%? Quote Link to comment Share on other sites More sharing options...
want2beaussie Posted April 20, 2015 Share Posted April 20, 2015 (edited) Hi Andrew, Just a quick query. We have an ANZ account, which we put an initial setting up amount in last summer. We are now going to spend the next 5 months transferring all our savings over so we cannot access them. Will this assist our credit history in Australia? One of the first things we want to do, approximately 9-10 months after arriving is purchase a property. We are hoping to both have 6 months work experience and a good credit history by this point as we do not have any debts, nor do we want any. Is there anything we can be doing to make that position stronger? As all our savings are going into the move we will only have around 5-10% deposit plus costs so we want to make our situation as good as possible. Thanks Julie Hey Julie, Try get your savings over here as quick as you can and make regular payments over to here to boost them. For housing deposits the banks like to see that you are consistently contributing to building savings, and not just having 1 big lump sum. Also they like to see this in the savings account for at least 3 months, but the longer the better (6 months ideal). If you have less than 20% deposit you need to pay LMI (Lenders mortgage insurance) but you don't need to pay this upfront it is added to your loan repayments over the term of the loan. http://www.mortgagechoice.com.au/home-loans/home-buying-advice/tips-and-tools/lenders-mortgage-insurance-lmi/how-is-lmi-calculated.aspx Also, I would suggest that most banks require at least 5%. There is also stamp duty to consider; depending on which state you intend to buy; and how much the property you intend to buy is, this amount will differ. Good luck :-) Danni **Sorry should also mention, depending on your residency status; and again location here is also First Homer Buyers Grant. http://www.firsthome.gov.au/ Edited April 20, 2015 by want2beaussie Quote Link to comment Share on other sites More sharing options...
jac2011 Posted April 20, 2015 Author Share Posted April 20, 2015 Thanks everyone. We have done a relative amount of research on the house buying process, especially as before I retrained I worked in finance, but the Australian credit scoring system just takes some getting used too. As we are moving to QLD I am aware stamp duty is nil if purchasing less than $500k. Moving to Townsville pretty much ensures the house for us will be under this amount which is a bonus. Depending on the size of the plot of land when we arrive too we will be puchasing a newbuild and making the most of the first homebuyers grant as we will be PR. Andrew has been great for years, providing me with advice whenever we needed it and as long as he is able we will be using him to secure us a mortgage. I recommend him to everyone. Quote Link to comment Share on other sites More sharing options...
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