Search found 7730 matches

by Otto Dargan
Fri Oct 04, 2019 4:10 pm
Forum: Home Loan Forum
Topic: Husband is a foreigner, can we still apply for a mortgage in Australia?
Replies: 5
Views: 67764

Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Hi Samantha,

Generally speaking, if you’re buying a property in the name of your partner that is either an Australian citizen, permanent resident or 444 visa holder, the stamp duty surcharge doesn’t apply.

In New South Wales specifically, if you’ve been living in Australia on a partner visa (subclass 309 or 820) for over 200 days, the surcharge doesn’t apply.

The other way to avoid the surcharge is to buy in the Northern Territory because they don’t apply a stamp duty and/or land tax surcharge.
For more information, you can have a look at our foreigner citizen stamp duty page.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Oct 04, 2019 2:57 pm
Forum: Home Loan Forum
Topic: Husband is a foreigner, can we still apply for a mortgage in Australia?
Replies: 5
Views: 67764

Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Hi Samantha,

The Great British Pound (GBP) is one of the acceptable foreign currencies by banks and lenders in Australia.

Banks will often assess his base income by converting it to Australian dollars, and then reduce it by 10% as a buffer for any currency fluctuations. Some lenders will only use 80% of his income to allow for exchange rate fluctuations.

Depending on the lender, the following documents are required to prove foreign income:
  • A letter from your employer,
  • A copy of your employment contract,
  • Two payslips,
  • Three months of bank statements showing your salary being deposited into your account, OR
  • Tax returns for the last financial year.
If you want to prove a strong case for the bank to assess your husband's income, they will look at:
  • Whether he as a valid temporary visa for Australia.
  • If there are family ties to Australia.
  • If you and your husband have children together
  • If you are married or in a de facto relationship for more than two years.
  • You are an Australian citizen and the main income earner.

Cheers,
by Otto Dargan
Fri Oct 04, 2019 2:34 pm
Forum: Home Loan Forum
Topic: Husband is a foreigner, can we still apply for a mortgage in Australia?
Replies: 5
Views: 67764

Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Hello Samantha. Welcome to the forums.

You and your husband can apply for a partner visa mortgage and might even be able to borrow up to 95% of the property value if you fulfil the following lending criteria:
  • The person on the temporary spouse visa must be buying the property with an Australian citizen.
  • The relationship is legitimate and continuing and may reject applications if you have not been together for a significant time period.
  • Some lenders require couples to purchase a property as ‘joint tenants,’ not ‘tenants in common '. However, not all lenders have this policy and may allow other legal ownership structures. If you are purchasing the property with your Australian citizen spouse, as ‘joint tenants’, then you will not be required to seek Foreign Investment Review Board (FIRB) approval.
It is also important that you have a good credit history, a solid income and a stable employment situation.

If you do not meet any of the criteria, then your mortgage will be limited to 80% of the property value.

If you are borrowing over 80%, then you will have to pay Lenders Mortgage Insurance (LMI).

Please go through our buying property in Australia for non-resident for more information.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a temporary resident home loan.

Cheers,
by Otto Dargan
Wed Oct 02, 2019 9:28 pm
Forum: Home Loan Forum
Topic: Can we get approved for a home loan with paid default?
Replies: 5
Views: 68076

Re: Can we get approved for a home loan with paid default?

Hi Cathy Bell,

Some lenders are willing to accept a deposit that you’ve borrowed from your parents because you’re more likely to pay the loan back than if you were to get a personal loan.

Please take note that any repayments you need to make on the borrowed deposit (including interest) will be taken into account when the lender calculates your borrowing power.

You will need to provide the bank with a loan agreement that you've made between you and your family. This is usually drafted by a solicitor.
You and your parents must seek separate legal advice to discuss any contingency plans on what would happen if you fail to repay the borrowed deposit. You can learn more about parent assist home loans here.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Wed Oct 02, 2019 8:01 pm
Forum: Home Loan Forum
Topic: Can we get approved for a home loan with paid default?
Replies: 5
Views: 68076

Re: Can we get approved for a home loan with paid default?

Hi Cathy Bell,

Genuine savings does not necessarily mean having savings in your accounts for more than 3 months. If you can prove that you have been making on-time rental payments, then these genuine savings are acceptable to some of our lenders.
  • Gift: The gift must be in your account and a gift letter must be provided by your parents to confirm that the gift isn’t a loan.
  • Bonus/Dividend/Commission payment: Provide a payslip evidencing payment and bank account statements.
  • Inheritance: Provide a letter from the Executor confirming the amount and date that the funds will be received.
  • Non-real estate asset sale: Provide evidence confirming the details of the asset that you sold. In most cases, this is from the sale of a motor vehicle.
  • Tax Refunds: Provide a copy of your Notice of Assessment.
You can make use of our genuine savings calculator for more details.

Cheers,
by Otto Dargan
Wed Oct 02, 2019 7:35 pm
Forum: Home Loan Forum
Topic: Do late repayments affect credit score that much?
Replies: 5
Views: 68821

Re: Do late repayments affect credit score that much?

Hi Jess,

To improve your Equifax score, there are a few simple steps you can:
  • Get your credit report and check to ensure all the data is correct. You can get a free report by directly contacting Equifax. If there any discrepancies ask them to fix it.
  • Avoid applying for any more credit.
  • Pay all your bills and debts on time.
  • Avoid moving address or employer unnecessarily.
  • Avoid applying for credit with less reputable lenders like payday lenders.
Keep in mind that improving your Equifax score is different to improving your credit score with a particular lender. Equifax only looks at your credit file whereas a lender is looking at all facets of your home loan application. Another tip is to open an account with the lender you plan to apply for a home loan with.

There is more to getting approved for a home loan than just your credit score. Our specialist mortgage brokers are experts in the policies of almost 40 lenders on our panel.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Wed Oct 02, 2019 7:21 pm
Forum: Home Loan Forum
Topic: Can we get approved for a home loan with paid default?
Replies: 5
Views: 68076

Re: Can we get approved for a home loan with paid default?

Hello Cathy Bell. Welcome to the forums.

You could get your mortgage approved with some specialist lenders even if you have defaults on your credit file. It all depends on how old the defaults are, the total number and the dollar value of the defaults.

In your case, since your husband has already paid off the default, lenders might allow you to borrow 80% of the property value, if there is good evidence of the cause of the default.

To increase your chances of approval:
  • Provide a default explanation letter to back up the explanation of the cause of the default.
  • Save a large deposit if it is possible of at least 10-20% of the purchase price.
  • Ensure that all paid defaults are marked as paid on your credit file.
Once your credit file is clear of blemishes, then we can refinance to a major bank with a competitive interest rate

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a bad credit home loan.

Cheers,
by Otto Dargan
Wed Oct 02, 2019 12:49 pm
Forum: Home Loan Forum
Topic: Do late repayments affect credit score that much?
Replies: 5
Views: 68821

Re: Do late repayments affect credit score that much?

Hi Jess,

That’s true. Positive credit reporting or CCR has both benefits and negatives. The main negative is that previously lenders were only able to see if you had defaulted on a loan, however, now they can also see if you’re making regular repayments on time. That means a temporary change in financial circumstances can negatively affect your credit score.

However, at the same time, people with bad credit can benefit from positive credit reporting as they are now more likely to be approved by a mainstream lender if their last 2 years repayment history information is perfect.

So, there are both winners and losers when it comes to home loan approval.

Cheers,
by Otto Dargan
Tue Oct 01, 2019 8:42 pm
Forum: Home Loan Forum
Topic: Do late repayments affect credit score that much?
Replies: 5
Views: 68821

Re: Do late repayments affect credit score that much?

Hello Jess. Welcome to the forums.

Comprehensive credit reporting (CCR) was implemented in Australia from July 2018, under which your credit file/ report also shows your ‘repayment history information’ for the last 24 months. So, if you’ve had any late repayments these get recorded which in turn negatively affects your credit score.

That is only if you’re late by more than 14 days or two weeks, they’re recorded on your file. If repayments are overdue for more than 60 days then they’re listed as defaults.

Too many credit enquiries also negatively affect your credit score. We usually recommend keeping credit enquiries to 2 or less six months prior to applying for a home loan. The good news is credit enquiries do not affect your score for long as they usually do not have a significant enough impact after 12 months.

CCR has both benefits and drawbacks for borrowers.

Our mortgage brokers can access your credit report without leaving a credit enquiry and do a full assessment. We have lenders on our panel who can consider a few adverse credit listings and offer competitive home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify.

Cheers,
by Otto Dargan
Mon Sep 30, 2019 7:44 pm
Forum: Home Loan Forum
Topic: Buying a mixed property. Do I apply for a residential or commercial loan?
Replies: 5
Views: 67098

Re: Buying a mixed property. Do I apply for a residential or commercial loan?

Hi Mark,

The lenders will need to know if the current tenants are running a profitable venture so they can keep paying rent and you can make your retail commercial loan repayments.

The lender will look into:
  • The profit and loss statements for the last two years.
  • Lease remaining on the property.
  • The type of business operating in the space.
Besides looking at your tenant's situation, they will also assess your financial situation to see if you can afford to repay the commercial loan. To do so, banks look at lending criteria like proving your income, credit history, employment status, etc.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a retail commercial loan.

Cheers,
by Otto Dargan
Mon Sep 30, 2019 6:43 pm
Forum: Home Loan Forum
Topic: Buying a mixed property. Do I apply for a residential or commercial loan?
Replies: 5
Views: 67098

Re: Buying a mixed property. Do I apply for a residential or commercial loan?

Hi Mark,

The banks will look into the following factors to value your retail space:
  • The size of the shop as shops located in prime locations have larger floor space, so might be more expensive. However, banks are not conservative when it comes to shop size as any size can appeal to a business niche.
  • If a retail shop is located in a central business district with a good amount of foot traffic, then it's an indication of long-term tenancy.
  • In most cases, retail properties are zoned mixed-use which means they are typically located in Commercial 1 Zone.
Cheers
by Otto Dargan
Mon Sep 30, 2019 5:21 pm
Forum: Home Loan Forum
Topic: Buying a mixed property. Do I apply for a residential or commercial loan?
Replies: 5
Views: 67098

Re: Buying a mixed property. Do I apply for a residential or commercial loan?

Hello Mark. Welcome to the forums.

While most lenders will classify mixed-use properties as commercial lending, they are others who can offer you a residential loan.

It is important to distinguish between the two loans as commercial loans are higher in risk and tend to have a lower loan to value ratio and higher interest rates than residential loans.

Most lenders will assess your property as commercial property as it has a retail shop on it. However, if the property is a converted terrace, it can be considered residential property and you might be able to apply for a residential loan.

If the property can be used as a home and the zoning allows the property to be converted to residential use, then you may be able to borrow up to 90% of the property value.

If you rent out the attached residence, then you can borrow up to 80% of the property value with a commercial loan.

You can apply for a retail commercial loan and you might even get a lower interest rate with some of our lenders.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a retail commercial loan.

Cheers,
by Otto Dargan
Fri Sep 27, 2019 8:26 pm
Forum: Home Loan Forum
Topic: Is the income from my new job accepted?
Replies: 5
Views: 68156

Re: Is the income from my new job accepted?

Hi Ben,

LMI capitalisation is the process by which the LMI premium is added on top of your loan. This is also known as “capping the LMI premium” or having capped LMI.

By capping your LMI premium, you will need a smaller deposit since you are not paying the LMI premium upfront, from the money that you have saved!

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,
by Otto Dargan
Fri Sep 27, 2019 8:01 pm
Forum: Home Loan Forum
Topic: Is the income from my new job accepted?
Replies: 5
Views: 68156

Re: Is the income from my new job accepted?

Hi Ben,

Besides earning a regular income and having stable employment, you will also need a deposit of at least 10% of the property value.
If this is your first home, the deposit amount can even include the first home owners grant (FHOG).

The major catch here is that you will need to pay Lenders Mortgage Insurance (LMI) if you plan to borrow over 95% of the property value.

Please use the LMI calculator to get an estimation on how much you'll need to pay.

Cheers,
by Otto Dargan
Fri Sep 27, 2019 7:32 pm
Forum: Home Loan Forum
Topic: Is the income from my new job accepted?
Replies: 5
Views: 68156

Re: Is the income from my new job accepted?

Hello Ben.

Thank you for reaching out to us and welcome to the forums.

Yes, even with a new job, we can find lenders that will accept income from it. However, before moving forward with getting a home loan make sure to:
  • Check your employment contract to make sure your employment is subject to probation.
  • Understand the length of your probation, usually, it is between 3 months, 6 months or even 12 months.
We have lenders that can let you borrow up to 95% loan to value ratio, but this is looked into on a case by case basis.

Most lenders are favourable towards applicants if:
  • The new job is in the same industry
  • Stable employment history
  • Continuous employment in the same industry.
The best way to get approved is to find a lender that will assess your income as true and correct and views your situation in a favourable light.

Give us a call on 1300 889 743 or fill in our free assessment form and our award-winning mortgage brokers could get you the best deal on your home loan.

Cheers,