Jay143

Hi All,


First time poster here, been reading the forum for some weeks now with great interest.

I am lucky enough to have dual UK/Oz citizenship and will be moving to Sydney in the next few weeks permanently. I have secured a role paying circa $250k AUD and wanted to buy a property in the next 12 months in the $800k - $1mil range.

However all my investments / money is in pounds and I want to give the exchange rate as much time to recover to the $2 mark as such would like to only put down a 10% deposit if these mortgages are available.

having a quick look at the internet all offers seem to require a 20%+ deposit. Anyone have any awareness of different options for someone in my position?

Many Thanks,
J

Geelong Gent

You will just need to pay the premium mortgage insurance. Easy

jothefw

That equals $2109 on $159000 borrowing so build it up!

Well there is that option .... however as we too are looking into this. There are lots of mortgages still available for 10% deposit however you need to show 3 mths minimum of geniune savings and be purchasing a property of a certain size - size over 40 m 2 I think but I haven't got my notebook to hand. However chances are for that price bracket you'll have a slightly larger place anyway.

Geelong Gent

Dont spoil the show

Buy in an inflated market
10% equity becomes -30%

asprilla

??????


As far as I am aware, there are only 1 or 2 lenders here in Aus that require a +20% deposit.

jothefw

Some quoted us 35% deposit if a) buy to rent and b) if tiny (tiny = smaller return potential = higher risk)

Jay143

Thanks all, it Mortgage insurance seems to be a waste of money and 20-35% deposits the norm.

Hopefully a few more products will appear in the marketplace over the next few months. In the interim I have had myself pre aprroved for a loan at 20% deposit.

spottydog

As long as it is for a home not a rental I don't think 90% is that difficult to get. You will need to prove the money is genuine savings (via bank statements etc.) rather than a gift and will need to pay LMI unless you keep the borrowing at 80% or less (before the GFC you still had to pay LMI on borrowings over 80% here so no change). You shouldn't have to much of a problem with your income multiplier.

Probably best to speak to a mortgage adviser who will be able to help.

For more info on the different loans available a good place for some light reading is the finance section of the forums at www.somersoft.com.au. Although these forums are investor focussed a lot of advisers post there.

galba

We looked at this too at the end of last year. We have the money offshore in Singapore but it's in pounds.

The land was $1,115,000 and if we put down 10% then the mortgage insurance was going to be $22,000. We had to weigh up whether to bring over the entire 20% and suffer the exchange rate or use 10% + pay the mortgage insurace and pray that the exchange rates improved.

In the end OH's company initmated that we may be going back overseas in the next 2 years or so, so we decided to wait and see.

Get a broker round to your house and they will explain everything.

ABCDiamond

Not guaranteed

On our last house in the UK, the broker told us we had to pay Mortgage Insurance, I think of about £1,100. But when I sat down and looked at it later on, I realised that if I increased our deposit by $1,000 we would avoid the Mortgage insurance.

Fortunately I didn't take his word on what was best for us; I had asked him to set up what was the best option to keep initial costs at a minimum.