Mortgage In Oz how hard is it?

[lauraj1988]

Hello Fellow Poms,

I just wondered how easy is it to obtain a mortgage in Queensland/ Oz? We are currently saving for a deposit for a house I have read it is only 10% needed in Oz not sure how true this is? Has anyone been through the process, I read you can apply for a home loan how will you provide credit rate history? and do you need show in full time employment etc is there anything else needed?

 

Thank you...

 

Laura x

[Guest]

It will depend on the situation at the time. I don't know what the average deposit is but hopefully someone will.

 

You will need to be able to prove employment for X amount of time.

 

Have a look at bank sites and their calculators to give you an idea of what will be looked at. They list all the things they'll be taking into consideration etc. However, self employed will be viewed differently than employed and could require more hoop jumping and possibly longer work history.

 

https://www.commbank.com.au/personal/home-loans/home-loan-calculators-and-tools.html?camhl4

[Ken]

If you're an employee you can get a loan with a range of banks with as little as 3 months of payslips. If you're self employed nearly all want 2 years of accounts - ANZ is the one exception who only want 1 year. Credit history is an interesting one as it seems to work completely differently from the UK. Australian banks appear to only care about a negative history. People who missed a payment 20 years ago have a black mark against their name but newly arrived Poms have a perfect credit record because they've never borrowed anything in Australia (or had to pay utility or Telstra bills all of which counts if you paid late).

[Slean Wolfhead]

If you're an employee you can get a loan with a range of banks with as little as 3 months of payslips. If you're self employed nearly all want 2 years of accounts - ANZ is the one exception who only want 1 year. Credit history is an interesting one as it seems to work completely differently from the UK. Australian banks appear to only care about a negative history. People who missed a payment 20 years ago have a black mark against their name but newly arrived Poms have a perfect credit record because they've never borrowed anything in Australia (or had to pay utility or Telstra bills all of which counts if you paid late).

 

But you need some sort of credit history or you have no existence on any systems. Even if it's just setting up utility accounts and getting onto the payment system.

Also it's worth both partners having at least one account setup in their own names so they both have a credit history, if you want two people on a mortgage and to get the higher borrowing allowed.

 

We made the mistake of me taking the first few months to deal with houses, cars, utilities in my name while my wife worked immediately upon arrival and brought in the money.

She couldn't get a mobile phone contract in her own name, whereas I (unemployed) was able to get anything i wanted because i was on the credit rating system and using her payslips as proof of income :-)

[tina0101]

When we bought a year ago in Brisbane and, deposit wise, 20% is ideal. Anything below that and you start getting hit with insurance fees - the further away from the 20%, the higher the fees.

I'd suggest contacting an insurance broker - we used one and he was invaluable. He went through all the different scenarios, explained what we needed etc. Husband was two months into a permanent contract and I was still in my work probation period. We found houses we liked and then he gave us printouts of all sums depending on how much deposit we wanted to put down.