jennlx Posted June 4, 2009 Share Posted June 4, 2009 Hi All, just hoping for a bit of advice from those who have been there, done that.... we're looking to move to Australia is about a year and hopefully purchase a home out there. Was wondering whether it would be worthwhile paying $5 a month to set up an Australian bank account now and dripfeed money into it (when the rate is good!) to get a semblance of a credit history sooner rather than later. I know some banks base their decision-making for loans on employment and salary etc. so not sure whether it would be worthwhile? Thanks!! Link to comment Share on other sites More sharing options...
Guest jogrant3232 Posted June 4, 2009 Share Posted June 4, 2009 The credit checking here is very different than UK, only credit history they are interested in is if you have any bad history here, loan defaults and bad payment records, Link to comment Share on other sites More sharing options...
andyhus Posted June 4, 2009 Share Posted June 4, 2009 Hi All, just hoping for a bit of advice from those who have been there, done that.... we're looking to move to Australia is about a year and hopefully purchase a home out there. Was wondering whether it would be worthwhile paying $5 a month to set up an Australian bank account now and dripfeed money into it (when the rate is good!) to get a semblance of a credit history sooner rather than later. I know some banks base their decision-making for loans on employment and salary etc. so not sure whether it would be worthwhile? Thanks!! i set up a NAB account from UK and paid my bond money from goverment into it. if you are out of the country they don't charge you the fee, or didn't when i done it. You can also get your account verified in uk so you can use it as soon as you get over here. The NAB bank is part of the clydsdale bank, i showed my passport and stuff in richmond, west london. might be worth looking into as the rate is shocking at the minute to get aud $ but keep an eye on it as there are spikes. i waited 9 months checking every day last year then hit it in Oct when it shot up to 2.7. makes a BIG difference. only my advice so i won't be offended if you ignore it. Link to comment Share on other sites More sharing options...
Mongrel Posted June 4, 2009 Share Posted June 4, 2009 Credit history like other posters have said is you start with a clean slate , you will need at least 6 months work history unless you have a big wedge Link to comment Share on other sites More sharing options...
jennlx Posted June 4, 2009 Author Share Posted June 4, 2009 Thanks for your responses. I will certainly look into the NAB and also intend to monitor the rate....how I wished I bought some AUD when it was high last year! In respect of credit history, I only ask as when I came here to London (I am Australian) I had terrible trouble with credit - all the banks would tell me "no credit history can be as bad as bad credit". It took about four years to establish enough credit to be considered for some credit cards even! Thank you for taking the trouble to email; this forum is a fantastic source of information, I'm addicted!! Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted June 4, 2009 Share Posted June 4, 2009 The advice that others have given is correct,in Australia you start with no history and only the details of any credit applications you make and defaults are recorded on your file,it doesn't matter if you take out a loan and pay it back early,that won't be recorded as a plus,but if you take it out and are late in a payment that certainly will be recorded ! There is a proposal at the moment for Australia to move to the UK and US system where you can improve your credit rating by good behaviour but I understand that the major banks are resisting it for some reason. Your idea of opening an Australian account from the UK is still a good one though because even though it won't actually appear on a credit file the banks like to see a pattern of regular deposits into an account when they come to making decisions on loans etc so it can only be a good thing. Link to comment Share on other sites More sharing options...
Guest Liam Posted June 5, 2009 Share Posted June 5, 2009 It may be worth setting up an account as one of the factors required for a new loan is to show a genuine savings history. If you can show 6 months of savings done weekly or monthly into an account over here then that may help in your mortgage application. Liam Link to comment Share on other sites More sharing options...
Guest Guest26110 Posted June 7, 2009 Share Posted June 7, 2009 Am I right in saying that if you had a bad credit history in UK, and perhaps had even been bankrupt, that it wouldnt show on your records in Australia. And on the other hand, if you had a good credit history here in Uk, you wouldnt benefit from it in Oz? Link to comment Share on other sites More sharing options...
Guest treesea Posted June 7, 2009 Share Posted June 7, 2009 It would be pretty hard to get a mortgage in Australia, until you have been working for at least three months and in a permanent job. That's because during the three month period you are still on probabtion, so could be terminated without recourse at any time. Contracting is hopeless for getting a mortgage, likewise self employment. The banks are a lot more conservative in Australia than in Britain.Though having said that, here it's going more like Australia. Look out for the capital adequacy rules when you do buy a house there. A deposit of less than 20% means you have to pay the bank's mortgage insurance, and that's regardless of your income. Opening up a bank account over in Australia while still in the UK is not a bad idea. If coming the other way, I would definitely be organising that in Australia before coming here. Opening a bank account here for the first time is a bit of a nightmare. If in melbourne or Sydney I would recommend a trip to the local HSBC (I can't comment about Sydney but in Melbourne the branch there is fantastic) and opening up a UK account over here form there. Especially if you are not a Brit and just coming over here to work/live for a while. It will be SO much easier once you get here. Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted June 8, 2009 Share Posted June 8, 2009 Contracting is hopeless for getting a mortgage, likewise self employment. If you have a large deposit to put down it is possible with self employment as you can take out a no doc loan. Although the rules have got pretty tight now with the economic climate, if you have a 40% deposit to put down you can get a mortgage after only being in the country for a week. If you have 20% to put down they ask that you can show 12 months of BAS Statements. If you do have 40% to put down the banks that will entertain you that I personally know of are: ANZ and Commonwealth. Link to comment Share on other sites More sharing options...
Guest Trakki Posted June 9, 2009 Share Posted June 9, 2009 We looked into opening a bank account before we came out but decided not to as they charge a monthly fee (around $5) if you have less than a certain amount in there so decided that it wasn't worth it. We looked into getting a mortgage after being here a month and got one granted. All they wanted to know was my wage and that it was a permanent position. We decided not to go ahead with it as I discovered I was pregnant so didn't know what would happen financially once I left work (not entitled to mat leave as not been there a year.) So it is possible to get a mortgage without a credit rating. We are on PR so don't if that makes a difference. HTH Link to comment Share on other sites More sharing options...
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