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Guest lisa maughan

Banks wont give mortgage on a ens 856 visa

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Guest lisa maughan

Has anyone else heard this - as a friend of mine has an ENS 856 visa and went for a mortgage. She applied for 95 percent and got pre-approval but when it came down to it the insurance indemnity company (who are required if you dont have a 10 percent mortgage) refuses to acknowledge the status of the perm ens 856. They cannot provide the insurance - for permenant residency obtained on these visas - due to them being linked to the temp 457 visa - even though the government acknowledge they are permenant visas.

 

Bottom line is on an ENS 856 visa - you will not get a mortgage unless you have 10 percent deposit (its out of the banks control).

 

Can anyone substantiate this?

 

My friend (who is a hairdresser - and speaks to many english expats) advises that she has heard the same problem reported by loads of people.

 

Interesting/Worrying !!

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Guest guest36187

We got a mortgage on a 457 visa. We had 10% to put down. Bankwest was one of the only banks at the time that would deal with us.

We arrived feb 05. Got Mortgage in June 06 and then we got PR in Jan 07.

 

Which bank did your friend go with?

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Guest lisa maughan

Yeah you had 10 percent - the problem seems to arise if you only have 5 percent deposit - because it requires an insurance indemnity - thats where the problem lies - they are the ones who wont authorise on the 856 visa.

You can get a 90 percent mortgage because it doesnt require the mortgage insurance indemnity.

 

So the main question is - has anybody managed to get a 95 percent mortgage on the ens 856 visa?

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Guest guest36187

HAs your friend tried Bankwest? We were offered a 100% mortgage at the time. THings may have changed obviously!

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Guest lisa maughan

It seems the banks may be happy to offer and pre- aprove on paper - but the problem arises when the finalisation takes place and the 3rd party company for the mortgage indemnity gets involved - the banks say yes - but the insurance co say no. ANd you dont find out til the 11th hour!

 

She has pre-approval for 95 percent mortgage and was 2 days off going unconditional contracts on a house sale - when this all reared up!

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Has anyone else heard this - as a friend of mine has an ENS 856 visa and went for a mortgage. She applied for 95 percent and got pre-approval but when it came down to it the insurance indemnity company (who are required if you dont have a 10 percent mortgage) refuses to acknowledge the status of the perm ens 856. They cannot provide the insurance - for permenant residency obtained on these visas - due to them being linked to the temp 457 visa - even though the government acknowledge they are permenant visas.

 

Bottom line is on an ENS 856 visa - you will not get a mortgage unless you have 10 percent deposit (its out of the banks control).

 

Can anyone substantiate this?

 

My friend (who is a hairdresser - and speaks to many english expats) advises that she has heard the same problem reported by loads of people.

 

Interesting/Worrying !!

 

I really cannot see what visa type has to do with it, plenty of people with PR get mortgages. Perhaps it is more to do with availability of 95% mortgages.

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Guest guest36187

Which bank did your friend try? Had she tried Bankwest? They offered the best deal at the time I needed it and are still pretty good

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My friend (who is a hairdresser - and speaks to many english expats) advises that she has heard the same problem reported by loads of people.

 

Interesting/Worrying !!

 

The biggest problem for money lenders at the moment are the amount of mortgages that are being defaulted on , and it will probably get worse before it gets better.

 

I havent read too much on many of the expat forums that i'm on, about mortgages for PR's being turned down (or even 457's) , but it is understandable that the banks are being more cautious.


 

 

:wink:

 

 

 

 

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I don't know about ENS status in terms of mortgages but I do know that on a 457 no one will touch you without at least 20% deposit, it's not so much the banks it is the insurance companies who provide the mortgage indemnity insurance. We looked into this only a few weeks ago so it's definitely the current situation. my hubby earns a substantial salary and our bank (Commonwealth) were more than happy to look at a mortgage with us but the problem arose with the insurance companies, they simply will not budge no matter how small a risk you appear to be.

 

Hope this helps.

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Guest guest36187

Bankwest gave us a 90% mortgage on a 457! (2006)

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Hello Lisa.

 

Please send me a PM or an email with your friend's name and contact details if she'd like me to arrange for my mortgage broker contact to look into this.

 

Seems to me that the insurers may not be aware of what they are dealing with. An ENS visa can be granted without a 457 visa ever having being issued.

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Bankwest gave us a 90% mortgage on a 457! (2006)

 

Well I really wish that was the case now but I suspect banks have tightened the reigns following the GFC, in 2006 in the UK they were offering silly mortgages it was crazy but it's not the case now, it's very very difficult to get a mortgage and certainly not 100%, I suspect it's a similar situation here!

 

it's catch 22 for us though, we have 2 properties in UK and it would be daft right now to sell up and bring the money over. We could definitely service a big mortgage here but we are considered a high risk (457), so our only option is to save the 20% deposit and hope that the market here isn't going to increase too much in the mean time! We will be going to ENS in the new year that's why this post caught my eye.

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Guest lisa maughan
Hello Lisa.

 

Please send me a PM or an email with your friend's name and contact details if she'd like me to arrange for my mortgage broker contact to look into this.

 

Seems to me that the insurers may not be aware of what they are dealing with. An ENS visa can be granted without a 457 visa ever having being issued.

 

Best regards.

 

Thanks Alan my friend saved up in the end and provided a 10% deposit. Its me that had the concerns as I currently have an 856 application in (with help thanks kindly to Sarah from Go Matilda)

So it is an occurence i was looking into to prevent the same happening to me. Like i said the banks may /seem willing to offer 95 % mortgages but its the indemnity that put a block on right in the closing stages. Which is dangerous if u have given up rental or gone unconditional on a sale.

Regards

Lisa

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Thanks Lisa.

 

Feel able to contact me off forum if you'd like to explore this for you ...

 

Best regards.


Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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Guest lisa maughan
I really cannot see what visa type has to do with it, plenty of people with PR get mortgages. Perhaps it is more to do with availability of 95% mortgages.

 

Neither could i understand it. But it was definatel due to the type of visa which she obtained her Pr on. U wouldnt think it would matter which one - if u are PR then youre Pr surely. But not in the eyes of the mort idemnity comps. There were heaps of phone calls to verify her status as pr but the wouldnt budge.

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I know this is old but is this still the case? we have ENS 856 and have pre approval at our bank, where we had to get it sent away, submitt all our ID and paperwork and are borrowing $365k on a $390 K home (25k deposit)

 

We have just had our offer accepted

So we will need mortgage lender insurance.

panicking now!

i assumed pre approval which was sent away, meant the money was fine and it was just paperwork, otherwise what is the point?

Edited by fairystar32

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