How soon can we get mortgage

[snufkin]

Hi,

 

We have been planning a return to Oz for ages and finally looks like it will happen

We (aus citizen and pr Brit) want to buy a house as soon as possible to get settled in. How soon after starting work can we get a mortgage considering that jobs are most likely to not be permanent to start with. We will have a 50% deposit on the LTV we are looking for. Is it possible to get a mortgage without a permanent position? If not how long do we need to be in a permanent position to get a loan.

Thanks 

[calNgary]

I would imagine as a citizen with a 50% deposit you would be able to secure one as soon as you can provide proof of an income decent enough to cover repayments . But i am not an expert so hopefully someone with up to date knowledge will be along soon.

Where in Aus are you heading too?

 Cal x

[snufkin]

31 minutes ago, calNgary said:

I would imagine as a citizen with a 50% deposit you would be able to secure one as soon as you can provide proof of an income decent enough to cover repayments . But i am not an expert so hopefully someone with up to date knowledge will be along soon.

Where in Aus are you heading too?

 Cal x

Tassie, Hobart region... I hope that's the case too but hard to know in these uncertain times if they want a long Australian work record and permanent position of the bat. We're going to stay with family initially and I was hoping to not have to rent but get a mortgage asap and hopefully find a place we like, if the stars align for us. X

 

[can1983]

On 19/07/2021 at 22:09, snufkin said:

Tassie, Hobart region... I hope that's the case too but hard to know in these uncertain times if they want a long Australian work record and permanent position of the bat. We're going to stay with family initially and I was hoping to not have to rent but get a mortgage asap and hopefully find a place we like, if the stars align for us. X

 

I'm sure you are aware that buying a house at the moment in Hobart is very tricky, not impossible but very stressful. There isn't much for sale and what there is is hugely inflated. I can't see how you will avoid renting for a year or so to build up a credit rating and find a house you want to buy and the vendor agrees to sell to you and not to the other 10 offers they have received.

We moved over in October 2017 and weren't in a position to buy until mid 2018 in terms of mortgage we had 40% LTV. We found our house in November 2018 and moved in Feb 2019. In the meantime we had to rent (reluctantly).

[snufkin]

8 hours ago, can1983 said:

I'm sure you are aware that buying a house at the moment in Hobart is very tricky, not impossible but very stressful. There isn't much for sale and what there is is hugely inflated. I can't see how you will avoid renting for a year or so to build up a credit rating and find a house you want to buy and the vendor agrees to sell to you and not to the other 10 offers they have received.

We moved over in October 2017 and weren't in a position to buy until mid 2018 in terms of mortgage we had 40% LTV. We found our house in November 2018 and moved in Feb 2019. In the meantime we had to rent (reluctantly).

We've been watching the market, but looking outside of Hobart (up to 45 mins away) and can stay with family in meantime. We did live in aus until 2015 so hopefully that gives us some credit history and we've kept our bank accounts running. Totally hear you about the vendors choosing someone else...I guess I'm more interested in when we are even be able to get a mortgage offer to start seriously looking. We both work in "stable" professions and my husband is from Hobart too and still have some work connections so hopefully he can get references. But thanks for the words of warnings we will be mentally prepared for a long wait! 

[snufkin]

I guess the alternative would be to buy something much small outright and live for a year or so and then apply for mortgage later.

Would fees/stamp duty solicitors fees etc make that totally non-viable? 

[Marisawright]

1 minute ago, snufkin said:

I guess the alternative would be to buy something much small outright and live for a year or so and then apply for mortgage later.

Would fees/stamp duty solicitors fees etc make that totally non-viable? 

That would end up costing you far more than renting for a year, more than likely.

[snufkin]

Just now, Marisawright said:

That would end up costing you far more than renting for a year, more than likely.

Fair enough... haven't bought and sold in aus before, just thought with house prices rising etc! 

[can1983]

13 hours ago, snufkin said:

Fair enough... haven't bought and sold in aus before, just thought with house prices rising etc! 

Its probably a reasonable conclusion as stamp duty is into $10's of thousand.

But I cannot overstress how silly the market in all of tassie is at the moment. We have owned our house for 2 1/2 years and in that time it has risen by approximately 35% based on the recent sale of a neighbour's house and the real estate who represented the previous owner revaluing our house.

We literally would not be able to buy our house today and we have only owned it for such a short time

[snufkin]

18 hours ago, can1983 said:

Its probably a reasonable conclusion as stamp duty is into $10's of thousand.

But I cannot overstress how silly the market in all of tassie is at the moment. We have owned our house for 2 1/2 years and in that time it has risen by approximately 35% based on the recent sale of a neighbour's house and the real estate who represented the previous owner revaluing our house.

We literally would not be able to buy our house today and we have only owned it for such a short time

Market might be silly...but we're moving to Tassie and will buy a house. And that's life!

My question was actually how long before we could get a mortgage! 

[Marisawright]

3 hours ago, snufkin said:

Market might be silly...but we're moving to Tassie and will buy a house. And that's life!

My question was actually how long before we could get a mortgage! 

You can get a mortgage as soon as you have a job. Credit scores do not rule people’s lives here.

The market in Tassie is silly but still much cheaper than most other capital cities 

Edited July 22, 2021 by Marisawright

[can1983]

28 minutes ago, Marisawright said:

You can get a mortgage as soon as you have a job. Credit scores do not rule people’s lives here.

The market in Tassie is silly but still much cheaper than most other capital cities 

In my experience you need a permanent ongoing job that you have had for 3 months and not be in a probation period. Based on my experience 2 1/2 years ago.

[Parley]

You can start researching the market now at https://www.realestate.com.au/buy

For a purchase like a house you want to live in for ever, or a long time anyway, I don't think it should be rushed.

I would want to take 6 months or a year and find something that i really love.

[Tulip1]

I’ve no idea how Australia see non permanent jobs but in the U.K. you would struggle to get a mortgage with one.  Our countries seem to have many very similar laws/rules so it may well be the same. Your deposit may be nice but it doesn’t pay the monthly mortgage payment so wouldn’t be taken into account.  The bottom line is you have to document (as does the lender) ongoing affordability.    Like most things though if you look hard enough and are happy to pay a premium such things can often be found.  It would be a good idea to check out the criteria on some of the big banks/lenders websites.  I think casual/non permanent work would be similar to self employed status.   Self employed people do get mortgages of course but only once they can document a few years of accounts. 

Edited July 23, 2021 by Tulip1

[Marisawright]

1 hour ago, Tulip1 said:

I’ve no idea how Australia see non permanent jobs but in the U.K. you would struggle to get a mortgage with one.  Our countries seem to have many very similar laws/rules so it may well be the same. Your deposit may be nice but it doesn’t pay the monthly mortgage payment so wouldn’t be taken into account.  The bottom line is you have to document (as does the lender) ongoing affordability.    Like most things though if you look hard enough and are happy to pay a premium such things can often be found.  It would be a good idea to check out the criteria on some of the big banks/lenders websites.  I think casual/non permanent work would be similar to self employed status.   Self employed people do get mortgages of course but only once they can document a few years of accounts. 

You are right, I should have said “as soon as you can get a permanent job” and if there is a probationary period, they won’t look at you till that’s over

[calNgary]

A couple of the girls who work with me on casual contracts have gained mortgages, so you do not have to be in a PFT/ PPT position. They had been on steady hours for a couple of years though so not sure if that made a difference.

This is what the ANZ require - 

https://www.anz.com.au/personal/home-loans/get-started/documents-home-loan-application/

Cal x

[Tulip1]

1 hour ago, calNgary said:

A couple of the girls who work with me on casual contracts have gained mortgages, so you do not have to be in a PFT/ PPT position. They had been on steady hours for a couple of years though so not sure if that made a difference.

This is what the ANZ require - 

https://www.anz.com.au/personal/home-loans/get-started/documents-home-loan-application/

Cal x

Made a huge difference I’d say.  Lots of people contract to the same company for years.  They are self employed and the girls at your work after two years of doing so would have their tax returns/audited accounts.  

[snufkin]

17 hours ago, can1983 said:

In my experience you need a permanent ongoing job that you have had for 3 months and not be in a probation period. Based on my experience 2 1/2 years ago.

Is that how long it took you to become permanent? 

I guess we will aim for getting permanent contracts after a three month probation I'm sure that's possible even if not easy!

[snufkin]

8 hours ago, Marisawright said:

You are right, I should have said “as soon as you can get a permanent job” and if there is a probationary period, they won’t look at you till that’s over

Good to know that credit rating is not be all and end all though! 

[snufkin]

9 hours ago, Tulip1 said:

I’ve no idea how Australia see non permanent jobs but in the U.K. you would struggle to get a mortgage with one.  Our countries seem to have many very similar laws/rules so it may well be the same. Your deposit may be nice but it doesn’t pay the monthly mortgage payment so wouldn’t be taken into account.  The bottom line is you have to document (as does the lender) ongoing affordability.    Like most things though if you look hard enough and are happy to pay a premium such things can often be found.  It would be a good idea to check out the criteria on some of the big banks/lenders websites.  I think casual/non permanent work would be similar to self employed status.   Self employed people do get mortgages of course but only once they can document a few years of accounts. 

Absolutely I will have a look....sometimes hard to find the details of employment/credit requirements

[Tulip1]

50 minutes ago, snufkin said:

Absolutely I will have a look....sometimes hard to find the details of employment/credit requirements

The big banks must surely have some chat function on their websites,  just ask the questions.

[Metoo]

On 24/07/2021 at 02:10, snufkin said:

Is that how long it took you to become permanent? 

I guess we will aim for getting permanent contracts after a three month probation I'm sure that's possible even if not easy!

We are in the process of buying a house with Westpac. They wanted to see the last 3 months pay slips. They already knew our bank details as we bank with them anyway.

I have been in my casual job for 5 yrs, hubby is on permanent contract for the past year in his current job.

Good luck with your move, very exciting times.

Metoo

[snufkin]

On 25/07/2021 at 23:15, Metoo said:

We are in the process of buying a house with Westpac. They wanted to see the last 3 months pay slips. They already knew our bank details as we bank with them anyway.

I have been in my casual job for 5 yrs, hubby is on permanent contract for the past year in his current job.

Good luck with your move, very exciting times.

Metoo

Thank you...it is exciting so much to do and worrying about our flight too!  

[WayneM]

We have been in Queensland about 2 years, and 2 weeks... and got mortgage approval today.

For the vast majority of the time our problem was not employment, but the deposit. So you got that nailed already.

I'm an IT contractor which was also a problem as I work 6 month contracts. I had to be in a contract with the same company for 6 months, and then get an extension. My wife is literally in her first month of a new permanent job with a 6 month probation period. That was our situation with a minimal deposit.

I'd suggest talking with a mortgage broker if you can find somebody to take you serious enough to have a conversation before you move if you want to move rapidly.

If you will be renting at first, say a month in a hotel then 6 months in a rental, that might just be enough to get your ducks in a row if everything works out well - depends so much on landing the stable job from what I can tell.

[Cath.C]

Reading through this topic, it seems like it should be possible for newly arrived expats to get a mortgage outright upon arriving in WA with A) Permanent resident Visas, B) a 4 year job contract for one to start,  with a clear pathway for a permanent position after that and C) a 10-20% deposit (or more).  

The problem with renting first and then finding a place 6 months down the line is 1) finding a place to rent with 4 legged hairy pets, and 2) the partner will be incredibly difficult to budge once settled in a place.  We'll have some temporary housing lined up, but I'm not sure yet what 'temporary' entails.  

From reading above, it seems like credit scores don't rule the day, but how will the banks calculate a credit rating without an Australian credit history?  I'm just trying to guess what a mortgage rate would be, although with global inflation on the rise, it seems like we might be looking at interest rates rising in the future.