Will my home loan be approved? I’m a UK citizen.

Any general questions you might have in regards to loans and finance.
Victoria Lance
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Joined: Fri Nov 01, 2019 7:18 pm

Will my home loan be approved? I’m a UK citizen.

Postby Victoria Lance » Fri Nov 01, 2019 7:20 pm

I will be moving from the UK to Australia soon as I got a new job as a teacher. I will be on a PR visa. If I were to buy a property, can I get a mortgage and what would be the deposit?

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Otto Dargan
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Re: Will my home loan be approved? I’m a UK citizen.

Postby Otto Dargan » Fri Nov 01, 2019 7:35 pm

Hello Victoria. Welcome to the forums.

Even on PR visa, you can get a mortgage. Permanent residents living in Australia can borrow up to 95% of the property value, provided you have an acceptable PR visa.

Generally, to avoid paying Lenders Mortgage Insurance, you will require at least 20% deposit of the property value. Assuming your property is worth $500,000, then the deposit you need will be $100,000.

You can get a home loan even with lower deposits, but you might have to pay higher interest rates and LMI.

Also, as a permanent resident, you do not need Foreign Investment Board Review approval and you might even qualify for First Home Owners Grant (FHOG).

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,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Victoria Lance
Posts: 3
Joined: Fri Nov 01, 2019 7:18 pm

Re: Will my home loan be approved? I’m a UK citizen.

Postby Victoria Lance » Fri Nov 01, 2019 8:21 pm

Thanks for that. $100,000 is a hefty sum to save. Will the lender assess my savings in the UK when I am buying the property in Australia?

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Otto Dargan
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Re: Will my home loan be approved? I’m a UK citizen.

Postby Otto Dargan » Fri Nov 01, 2019 8:31 pm

Hi Victoria,

We do have lenders on our panel that will accept overseas saving in your UK account as genuine savings.

In some cases, lenders will allow you to borrow 90% of the property value even with overseas savings. This is looked into on a case by case basis.

Lenders will even accept overseas savings transferred from your UK account to the Australian bank as long the names of both accounts are the same and there have been regular deposits made over 3 months in your UK account.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Victoria Lance
Posts: 3
Joined: Fri Nov 01, 2019 7:18 pm

Re: Will my home loan be approved? I’m a UK citizen.

Postby Victoria Lance » Fri Nov 01, 2019 8:35 pm

That’s good to know. So what is the process to apply for a home loan in Australia?

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Otto Dargan
Mortgage Specialist
Posts: 7728
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Will my home loan be approved? I’m a UK citizen.

Postby Otto Dargan » Fri Nov 01, 2019 8:38 pm

Hi Victoria,

The home loan application process at Home Loan Experts goes through the following phases:

Once you’ve made contact with our mortgage broker, you will discuss your situation and our broker will determine your eligibility for a home loan. If you move ahead, you will need to complete a short application with all the necessary documents like your ID, payslips, bank statements, etc.

After which, there is a preliminary assessment where your borrowing power is assessed. Our brokers will compare the most suitable loans at competitive interest rates. You will be presented with two to three loan recommendations to choose from.

When you’ve chosen your loan, you will submit all your final documents to the lender. We will highlight the strengths of your application and present it in a way that lenders would best assess your situation.

The loan application process begins with a pre-approval or conditional approval where you will have to meet the bank’s lending policies. Pre-approval is only done if you have not found a property yet.

If you have already chosen a home to buy, then it will go through valuation - where the valuer will inspect the property and determine the value of the property.

Then, you would get a formal approval where the lender has the necessary requirements and they are willing to approve your loan. After which, the lender will offer you a loan contract, you once you sign it, you have accepted their offer.

The final step in the loan application process is settlement, where the lender has certified that your documents are in order and make the funds available for purchase.

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,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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