Mortgage - agreement in priciple before moving?

[Shaz36]

Hi,

Does anyone know if there is any way to get an agreement in principal for a mortgage before moving to Australia?

 

I had thought someone on here before had mentioned that when opening an Australian bank account, the bank also offered them a mortgage.

 

Thanks

Shaz

[Andrew from Vista Financial]

Hi Shaz

 

I would say that it is not really worth it as when you move to Oz you will only get a mortgage based on the new employment and income details etc etc.

 

Mortgages are now regulated by ASIC (equivalent to FSA) as of July 1 this year and it is up to the Broker or loan officer in the Bank to ensure that a mortgage is not unsuitable for a person.

 

They would not be able to do this knowing that your circumstances are about to change.

 

In any event you would still have to give your new details once you have found a property or to update the pre-approval when in Oz. You would then have to be accepted based on your current situation so you may as well wait.

 

However it may be feasible if you already have an employment contract for Australia in place.

 

 

Regards

 

Andy.

[sgperry]

hi Shaz,

 

we went to both NAB and St George two days after we arrived in Sydney, and were given pre approvals for mortgages with both, though it was easier with St George (who approved us on the spot).

 

St George were happy to accept three payslips from my most recent UK employer as well as evidence of my savings (I had quite a bit of cash from the sale of my home in London and was only looking for a mortgage of up to 25 - 30% of planned property purchase.)

 

Once we found a property, we opted to go with ANZ as they have what is called a "simple" mortgage - no bells and whistles, simply a good interest rate, no overpayment fees and so on. The mortgage broker came to my home and we filled out the app online, then within 3 days I had full approval.

 

All I needed for this was my Queensland drivers license, details of the employer who had offered me a job (I haven't yet actually started it, but its an offer on the table) and evidence of my deposit.

 

They were happy to include details of my two previous employers in the UK, as well as my recent address in the UK. ie. they weren't fussed about everything having to be Australian (employer history, payslips and so on.)

 

It depends on personal circumstances but I'd say if you've got a good deposit, have a job offer, aren't borrowing too much LTV and have permanent residency or are a returning Aussie citizen (my situation), then you should be fine.

 

cheers sg

[Shaz36]

Hi sgperry,

Thanks so much, I had thought that it may be the case that if we had a large deposit, and a job offer that it shouldnt be that hard to get an offer in principle.

 

Its good to know it was straightforward for you. I will get in touch with NAB and see what they say.

 

Thanks again,

Shaz

[Guest]

Hi Shaz.

 

I've PM'd you.

 

Generally, the bigger the deposit, the more flexibility the lender has!

 

David

 

 

Hi sgperry,

Thanks so much, I had thought that it may be the case that if we had a large deposit, and a job offer that it shouldnt be that hard to get an offer in principle.

 

Its good to know it was straightforward for you. I will get in touch with NAB and see what they say.

 

Thanks again,

Shaz