Search found 7730 matches

by Otto Dargan
Fri Dec 07, 2012 4:53 pm
Forum: Home Loan Forum
Topic: Can I Get A Home Loan On A Spouse Visa?
Replies: 2
Views: 8859

Re: Can I Get A Home Loan On A Spouse Visa?

Hi Thomas,

Trying to get a loan whilst on a spouse visa can be quite complicated. Essentially there are three options available to you. You can borrow together as a couple, your wife can borrow individually as an Australian citizen, or you can borrow, despite being on a spouse visa.

Joint application, both husband and wife:
If both your wife and you are applicants on the home loan, the lenders will consider the application as a Permanent Resident/Citizen application. This will allow you to have a max LVR of 95% or 100% with a Guarantor.

Spouse Visa holder only application:
If you would like to apply for the home loan solely your application will be treated as a non-resident home loan. With this type of loan you would usually only be entitled to borrow 80% of the purchase price from banks that accept Visa applicants. However, our company has special agreements with certain lenders to allow us to lend up to 90% of the property value to non-residents.

Australian citizen only application:
Your wife can apply as the sole borrower and the application will be treated as a regular Australian citizen borrower.

Because you are both working full time, I suggest make the most of your spousal visa and apply jointly application on the home loan jointly. This will build a stronger case to the banks and will allow you to have an increased max borrowing capacity.

If you would like more information people read our Spouse Visa page.
by Otto Dargan
Fri Dec 07, 2012 3:29 pm
Forum: Property Investment Forum
Topic: Can I Buy A House In Australia On A 457 Visa?
Replies: 6
Views: 80695

Re: Can I Buy A House In Australia On A 457 Visa?

Hi Alex,

I can confirm that most people on a 457 Work Visa are eligible for a Home Loan in Australia. Your application for permanent residency also helps build a stronger case to the banks.

Those on 457 Visa’s that have a formal spouse of Australian citizenship are eligible for a standard 95% loan. Unfortunately applying on your own, you would only be entitled to an 80% LVR (Lenders Mortgage Insurance) lend from most lenders that accept 457 Visa applicants.

The basic requirements to start your home loan application with the banks would be:
  • Evidence of your employment and income.
  • Evidence of your deposit/savings. This should show the bank you have genuine savings.
  • Evidence of any other debt e.g. a credit card or personal loan.
  • A copy of your Visa approval.
  • Identification (Usually just a passport).
We can lend you up to 90% of the property value. With this offer you will only require a 10% deposit plus Stamp Duty funds as well as other general costs e.g. solicitor fees and loan set up fees. This is not available through the banks directly or through other mortgage brokers, this has come from special agreement we have with specific lenders.

For more information about 457 visa and our 90% lend offer please click here.
by Otto Dargan
Fri Dec 07, 2012 2:24 pm
Forum: Property Investment Forum
Topic: Can I Buy An Investment In Australia While Living Overseas?
Replies: 4
Views: 16387

Re: Can I Buy An Investment In Australia While Living Overse

Hi Crackle,

The application process is very similar to purchasing property in a country you are a citizen of.

General requirements of a lender are providing evidence of your employment and income. Evidence of your deposit and banking history, this is to show your deposit is genuine savings and there are no negative balances in your accounts. The banks also require a copy of your passport for identification purposes.

If you would like to enquiry with us please click here, we can arrange for a Mortgage Broker to give you a call and discuss your situation further.
by Otto Dargan
Fri Dec 07, 2012 1:41 pm
Forum: Home Loan Forum
Topic: Do I Need FIRB Approval To Buy A Property?
Replies: 2
Views: 5405

Re: Do I Need FIRB Approval To Buy A Property?

Hi Umbrella,

There are many guidelines an investor will have to adhere to when purchasing a property in Australia. The most important information you know need to know about both FIRB and Lender guidelines are:

FIRB:
  • There are location restrictions on where the Foreign Investor is located. Being a citizen of The United States you are eligible to purchase in Australia.
  • The property you purchase has to be a newly established building meaning that the property has not been lived in before.
  • You are also able to purchase vacant land and build.
  • You are required to pay stamp duty on the property.
  • For your situation, you will require FIRB approval for all purchases in Australia.
Lenders:
  • Buying a property in Australia is very similar to purchasing in a country you are a citizen of.
  • Lenders will require a minimum 20% deposit to complete the purchase. This is because they will only lend a max of 80% of the purchase price of the property.
  • You will need additional funds for stamp duty.
  • You will need to be able to prove your income and employment as well as verify your deposit is genuine savings.
In regards to the property you are currently paying off in USA, lenders will require evidence of the debt, your repayments and if there is any rental income coming from the property.

Please have a read over our FIRB Approval Page and our Foreign Investor Page for more information and helpful tips.
by Otto Dargan
Fri Dec 07, 2012 1:02 pm
Forum: Property Investment Forum
Topic: Can I Buy An Investment In Australia While Living Overseas?
Replies: 4
Views: 16387

Re: Can I Buy An Investment In Australia While Living Overse

Hi Crackle,

I can confirm you are able to buy property in Australia as a foreigner.

Being a Dutch citizen living in The Netherlands you are eligible to purchase in Australia for investment purposes as a Non Resident/Foreign Investor.

There are some guidelines that the FIRB (Foreign Investment Review Board) have. Two key guidelines are:
  • The property you purchase must be newly built. I.e. No one has lived there before.
  • You will need to have at least 20% savings as a deposit plus extra funds for stamp duty. This is because Australian Lenders will only lend a max of 80% of the property value.
Ideally Australian Lenders favour houses that are located in major cities and their surrounding suburbs as opposed to farms in country/rural areas.

For more information please visit our Foreign Investors page.
by Otto Dargan
Fri Dec 07, 2012 9:49 am
Forum: Property Investment Forum
Topic: Foreign Investor Wanting Help With FIRB Approval!!
Replies: 2
Views: 13143

Re: Foreign Investor Wanting Help With FIRB Approval!!

Hi Elena,

Unfortunately because FIRB will only approve new properties under their Foreign Investors Scheme, you will be unable to purchase an existing property for your son if you want to apply for the loan as a Non-Resident.

Some of the other options I can offer you are:
  • Consider buying a new property. New properties have the benefits of quick sales and faster move in time, allowing your son to be in his new home sooner.
  • If you are adamant about purchasing an existing property, we can look at the path of putting the loan in your son’s name. To be eligible for this your son will have to be working and have enough income to service the loan. This will allow you to look at established apartments.
You can also refer to our Foreign Investors Pages for more information.
by Otto Dargan
Thu Dec 06, 2012 7:11 pm
Forum: Home Loan Forum
Topic: Mortgage for a NRAS property, help needed!
Replies: 1
Views: 7351

Re: Mortgage for a NRAS property, help needed!

Hi Boon,

Thank You for asking this question. NRAS properties are always a tricky affair to be dealing with. Like you said, although they are an investors' best bet with tax advantages, it is rather difficult to find financing for such properties.

The good news though is that there are lenders which can lend up to 90% of the property value for NRAS properties. This is for companies which are listed with the lenders. If they are not listed, you can still borrow up to 80% of the properties' value.

Please read through the page on NRAS properties in our website. If you would like to know more about your options please contact one of our Mortgage Brokers.

Good Luck!
by Otto Dargan
Thu Dec 06, 2012 3:02 pm
Forum: Property Investment Forum
Topic: Claiming Negative Gearing On Investment Properties
Replies: 3
Views: 15155

Re: Claiming Negative Gearing On Investment Properties

Hi Garry,

Yes Lyle is right in the feedback she has provided!

To elaborate on the above comment, the bank does not usually follow up on these types of issues; they just want to make sure you are paying your repayments. The Tax Office usually takes care of these issues.

What you do with the Bank is a separate matter to what you do with the Tax Office. It doesn't matter if your loan says “Investment Loan” or “Home Loan” on your statement, what matters is what you are actually using the money for.

Once you move into the property that is listed as “Investment Loan” you are no longer entitled to the Negative Gearing Tax.

Your query is best suited for an accountant; our advice is general advice only. However you can refer to our negative gearing page for more information. Please refer any tax questions to an accountant as tax in very complex and beyond my areas of expertise.
by Otto Dargan
Tue Dec 04, 2012 8:56 am
Forum: Home Loan Forum
Topic: Home Loans for Flood Affected Land
Replies: 3
Views: 9430

Re: Home Loans for Flood Affected Land

Hi Taylor,

Flood zoned properties can be accepted subject to some lending restrictions.

Firstly the way that flood prone properties are classified has changed.

1:100 years is now 1% AEP (Annual Expedient Probability)
1:50 years is 2% AEP
1:20 years is 5% AEP

This is just a renaming. Don't worry about it too much.

1:100 years or 1% AEP can be financed in most cases with some of our banks. However for properties that are flooded more frequently this may be a problem. The lending guidelines vary between banks however some examples are:

Bank 1

1% AEP – Annual Expedient Probability (previously 1:100 year flood zone) will be considered on a case by case basis, subject to insurance cover.

2% and 5% AEP (previously 1:50 and 1:20 flood zones respectively) will not be considered.

Bank 2

Generally, properties that are located in a floodway or direct current are not acceptable as security. Proposals will be considered, however, for properties in flood prone area, provided:
- full flood cover insurance is available and
- satisfactory valuer or surveyor reports are held.

So what does this mean?

If you can get insurance and you are allowed to build on the property OR there is already a building on the property and the floor height is higher than the flood height then it is likely that we can help you to obtain a mortgage.

1:50 year (2% AEP) is case by case. 1:100 year (1% AEP) should be ok.

We really need to know the full details to be sure. Call our office on 1300 889 743 and ask to speak to our specialist in flood affected properties.
by Otto Dargan
Sun Dec 02, 2012 8:22 am
Forum: Property Investment Forum
Topic: Forum rules and regulations
Replies: 0
Views: 113962

Forum rules and regulations

This forum is made publicly available for the community in order to provide a valuable resource for anyone who is looking for a home loan in Australia. In order to keep this forum a valuable resource, we require all forum members to abide by the following rules.

Violation of any of these rules will result in consequences determined on a case-by-case basis.
  • Posts must be constructive and on topic.
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Thank you for visiting the Home Loan Experts Forum. We hope you enjoy your stay.

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by Otto Dargan
Sat Dec 01, 2012 12:30 pm
Forum: Property Investment Forum
Topic: Company Title vs. Strata Title
Replies: 1
Views: 15642

Re: Company Titles vs. Strata Titles

Hi Boon welcome back,

It looks like you understand it pretty well. Company titles you own shares (and indirectly the unit) whereas with strata title you own an airspace.

Strata is simpler which is a big bonus and there are some potential complications with company title as there may be restrictive rules in the company constitution which stop you from having a pet or require you to have any new owner approved by the other owners, if you are selling.

As for getting a mortgage, it is much easier to finance strata titled properties. All lenders accept strata title. However with company title they are taking a charge over shares in a company so it is a little more complicated. As a result most lenders will reduce their loan to 85% of the property value as a max. You can read our article on financing a company title unit for more info.

Personally I think it really just comes down to return on investment. Many company title units are in great locations in high demand suburbs and sometimes they have chic designs. You just have to look at the restrictions for your block, the costs imposed by the company (similar to strata levies) and the potential rental return / capital growth and go from there.

Good luck with your investment!
by Otto Dargan
Thu Nov 22, 2012 5:03 pm
Forum: Property Investment Forum
Topic: Is Custodian Wealth Builders John Fitzgerald helpful?
Replies: 6
Views: 44515

Re: Is Custodian Wealth Builders John Fitzgerald helpful?

Hi bdjc I don't think they publish their results. Not many investment companies / gurus do. I'd certainly love to see them! Case studies are one thing, however showing their full results, warts and all, would be great.
by Otto Dargan
Thu Nov 22, 2012 1:20 pm
Forum: Property Investment Forum
Topic: Can I still use my LAFHA income?
Replies: 3
Views: 16863

Re: Can I still use my LAFHA income?

Hi Agner

Calculating your borrowing capacity is quite complex. Your income isn't enough to figure it out, we would need to know your living expenses, your current debts and your intentions with the property.

Also with LAFHA ending for many temporary residents, your after tax income has likely changed so you will need to take this into account as well.

You can use our how much can I borrow calculator to find out how the banks will view your situation.
by Otto Dargan
Thu Nov 22, 2012 1:11 pm
Forum: Home Loan Forum
Topic: Buying a home in my husbands name due to credit history
Replies: 2
Views: 6157

Re: Applicant Question

Hi wantingtobuy,

The problem you will face is that if you are not on the loan application then the banks can't use your family tax benefits in their assessment. However they will take the living expenses for your entire family into account! You can play around with our borrowing power calculator to see how this would affect your maximum loan amount.

Whereas if you are on the loan then the defaults will be a concern. If you can let me know a little more about your defaults then I can let you know where you stand.

For each default please let me know:
  • When it was listed on your credit file.
  • When it was paid.
  • How much it is for.
  • Which type of default is it e.g. a bank, a utility, a phone company etc.
We have some lenders that can ignore some small paid defaults and others that can ignore defaults over two years old. The policy regarding this is complex so I need to know the full details to be sure.

Also did you save the deposit yourselves or is it a gift? Would you be borrowing 80% or 90% of the purchase price?
by Otto Dargan
Thu Nov 22, 2012 12:41 pm
Forum: Home Loan Forum
Topic: Sister buying half of my house
Replies: 3
Views: 12112

Re: Sister buying half of my house

Your current home loan will automatically roll over to be 25 years P&I once the interest only period ends. So there is no need to change anything. However we can look at it and see if you can get a better deal at that time.

I don't like to refinance loans for no reason, there has to be a strong benefit for you before we would recommend changing lenders.