australia morgages HELP !!
Aug 8th 2007, 2:28 am
#31
BE Forum Addict
Joined: Apr 2003
Location: Jacobs Ridge, Gold Coast
Posts: 1,140
Re: australia morgages HELP !!
This mornings news is not good for all us mortgaged up folk!!
I have been looking at refinancing recently to get a better rate and free up some equity to do some renovation work.
Does anyone know the answer to these q's:
1) We have already paid LMI with one lender. If we change to another to get the better rate, do we cancel previous LMI and use the refind to establish new LMI with new lender?
2) I applied for the first time buyers grant last time round, will my wife be eligble for it this time, or is it linked to the property....?
And how's this for a bit of cheek, my current lender has increased the fee for early loan settlement recently, after I requested a settlement summary - amazing timing eh!
I have been looking at refinancing recently to get a better rate and free up some equity to do some renovation work.
Does anyone know the answer to these q's:
1) We have already paid LMI with one lender. If we change to another to get the better rate, do we cancel previous LMI and use the refind to establish new LMI with new lender?
2) I applied for the first time buyers grant last time round, will my wife be eligble for it this time, or is it linked to the property....?
And how's this for a bit of cheek, my current lender has increased the fee for early loan settlement recently, after I requested a settlement summary - amazing timing eh!
In response to No. 2, the first home buyers grant is not linked to the property, it is linked to you as a previous applicant. As your spouse, your wife would not be eligible for the grant.
Aug 8th 2007, 3:30 am
#32
Frequent Flyer Member
Joined: Jun 2007
Location: Melbourne
Posts: 10,994
Re: australia morgages HELP !!
Not if you have ever purchased a property in Australia, or elsewhere as far as I am aware.
Aug 8th 2007, 4:03 am
#33
BE Forum Addict
Joined: Apr 2003
Location: Jacobs Ridge, Gold Coast
Posts: 1,140
Aug 8th 2007, 4:20 am
#34
Never going back
Joined: Mar 2005
Location: New South Wales!!!!!!!
Posts: 3,656
Re: australia morgages HELP !!
There's some good advice already given in this thread, but some of the posts are just missing some information. Excuse the length but I'll try to clarify a few things.
1) Stamp duty rules vary from state to state and the cost of stamp duty can be a very significant cost. Check the rules for the state you are going to be buying in. Most states give a generously discounted rate of stamp duty for first home buyers but ONLY for permanent visa holders. If you are on a temporary visa, you will pay the full stamp duty rate for the state you buy in and you will not get First Home Owners Grant of $7,000
2) If you are on a temporary visa, the most that all Australian banks can/will lend you is 80% of the value of a property. Some limit it to 70%, some lenders won't deal with temporary visa holders at all. So if you are on a temp visa you will need a deposit of at least 20% PLUS all the fees and stamp duty.
3) If you are on a permanent visa, you can borrow up to 100% of a property's value (as long as you can afford the repayments). The rules and conditions vary from lender to lender. Some banks have "qualifying" periods of six months, others are only 1 day.
4) If you want to borrow more than 80% of a property's value, the lender is obliged to take out Lenders Mortgage Insurance. The rules for LMI are tougher than the rules a bank may have, therefore borrowing with a 20% deposit is much easier than borrowing more than 80%. The LMI companies will not deal with ppl ontemporary visa's - hence rule #2. The cost of LMI goes up significantly as the borrowings go from 80% to 100%.
5) Some banks or lenders offer "lo Doc" or even "No Doc" loans where the customer is asked to provide a lower level of (or no) documentation about their employment and finances. Some companies restrict Lo Doc loans to people with an ABN, some allow normal salaried employees access. Some lenders require an ABN is held for two years or more, some lenders require an ABN to be only 1 day old.
6) The training, skill and knowledge of "mortgage brokers" or advisors varies from state to state. In some states, no training or knowlege is required. WA has the highest level of training and a WA broker can arrange loans anywhere in Australia whereas a Qld broker an not arrange or advise on loans in WA. A sign that a mortgage broker is accredited is to check that they are a member of the Mortgage & Finance Association of Australia.
7) Mortgage brokers generally do not charge for their services. They are paid a commission by the bank or lender. These commissions do not make the loans more expensive, in fact many brokers can arrange loans cheaper than
what many people would get by going to their bank.
I hope this answers or clears up some of the ambiguities in the other posts.
HTH
Bob in Bull creek
1) Stamp duty rules vary from state to state and the cost of stamp duty can be a very significant cost. Check the rules for the state you are going to be buying in. Most states give a generously discounted rate of stamp duty for first home buyers but ONLY for permanent visa holders. If you are on a temporary visa, you will pay the full stamp duty rate for the state you buy in and you will not get First Home Owners Grant of $7,000
2) If you are on a temporary visa, the most that all Australian banks can/will lend you is 80% of the value of a property. Some limit it to 70%, some lenders won't deal with temporary visa holders at all. So if you are on a temp visa you will need a deposit of at least 20% PLUS all the fees and stamp duty.
3) If you are on a permanent visa, you can borrow up to 100% of a property's value (as long as you can afford the repayments). The rules and conditions vary from lender to lender. Some banks have "qualifying" periods of six months, others are only 1 day.
4) If you want to borrow more than 80% of a property's value, the lender is obliged to take out Lenders Mortgage Insurance. The rules for LMI are tougher than the rules a bank may have, therefore borrowing with a 20% deposit is much easier than borrowing more than 80%. The LMI companies will not deal with ppl ontemporary visa's - hence rule #2. The cost of LMI goes up significantly as the borrowings go from 80% to 100%.
5) Some banks or lenders offer "lo Doc" or even "No Doc" loans where the customer is asked to provide a lower level of (or no) documentation about their employment and finances. Some companies restrict Lo Doc loans to people with an ABN, some allow normal salaried employees access. Some lenders require an ABN is held for two years or more, some lenders require an ABN to be only 1 day old.
6) The training, skill and knowledge of "mortgage brokers" or advisors varies from state to state. In some states, no training or knowlege is required. WA has the highest level of training and a WA broker can arrange loans anywhere in Australia whereas a Qld broker an not arrange or advise on loans in WA. A sign that a mortgage broker is accredited is to check that they are a member of the Mortgage & Finance Association of Australia.
7) Mortgage brokers generally do not charge for their services. They are paid a commission by the bank or lender. These commissions do not make the loans more expensive, in fact many brokers can arrange loans cheaper than
what many people would get by going to their bank.
I hope this answers or clears up some of the ambiguities in the other posts.
HTH
Bob in Bull creek
Aug 8th 2007, 5:43 am
#35
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: australia morgages HELP !!
Budget for about $1500 legal costs and then $300 to $400 for pest control and building survey.
Not sure what price you are looking at but around $300K is about $15K. As you will be borrowing more than 80% you will be asked to pay mortgage indemnity insurance (which will be added on to your loan). If you have a job and the income can afford the repayments and allow amounts based on your personal circumstances ie number of dependents etc they may lend to you.
Low Doc is low documentation usually for between 20% and above - different to No Doc which requires at least 30%.
Watch early redemption penalties and dont get excited just because a lender gives you an approval - still shop around. You may only have a small deposit now but in 2 years time?
Good luck
Aug 8th 2007, 6:15 am
#36
Senior Stella Member
Joined: Oct 2003
Location: Brisbane, QLD
Posts: 394
Re: australia morgages HELP !!
This mornings news is not good for all us mortgaged up folk!!
I have been looking at refinancing recently to get a better rate and free up some equity to do some renovation work.
Does anyone know the answer to these q's:
1) We have already paid LMI with one lender. If we change to another to get the better rate, do we cancel previous LMI and use the refind to establish new LMI with new lender?
2) I applied for the first time buyers grant last time round, will my wife be eligble for it this time, or is it linked to the property....?
And how's this for a bit of cheek, my current lender has increased the fee for early loan settlement recently, after I requested a settlement summary - amazing timing eh!
I have been looking at refinancing recently to get a better rate and free up some equity to do some renovation work.
Does anyone know the answer to these q's:
1) We have already paid LMI with one lender. If we change to another to get the better rate, do we cancel previous LMI and use the refind to establish new LMI with new lender?
2) I applied for the first time buyers grant last time round, will my wife be eligble for it this time, or is it linked to the property....?
And how's this for a bit of cheek, my current lender has increased the fee for early loan settlement recently, after I requested a settlement summary - amazing timing eh!
Aug 8th 2007, 6:21 am
#37
Where traffic lights rule
Joined: Aug 2006
Location: Brighton QLD
Posts: 2,460
Aug 8th 2007, 6:25 am
#38
Where traffic lights rule
Joined: Aug 2006
Location: Brighton QLD
Posts: 2,460
thick, but what is a low doc loan?
Aug 8th 2007, 7:06 am
#39
Forum Regular
Joined: Jul 2007
Location: albany creek
Posts: 40
Re: australia morgages HELP !!
we were told you can only borrow 80% on a temporary visa and 95% if you have residency. Westpac are good
Aug 8th 2007, 9:11 am
#40
Forum Regular
Joined: Feb 2007
Posts: 59
Re: australia morgages HELP !!
Sure could you send me the contact, thanks
Aug 8th 2007, 12:09 pm
#41
BE Forum Addict
Joined: Apr 2003
Location: Jacobs Ridge, Gold Coast
Posts: 1,140
Aug 8th 2007, 4:12 pm
#42
Dee & Steve
Joined: Apr 2005
Location: Perth, W.A
Posts: 47
Re: australia morgages HELP !!
HI ALL ,
me and other half moved over to oz 2weeks ago and hubby has job starts wednesday i am still looking,we are needing a 300k morgage a.s.a.p what are our chances we have $15000 savings !! please help x x melly x x only reason being is we have the chance of the perfect house with $20000 knocked of !
me and other half moved over to oz 2weeks ago and hubby has job starts wednesday i am still looking,we are needing a 300k morgage a.s.a.p what are our chances we have $15000 savings !! please help x x melly x x only reason being is we have the chance of the perfect house with $20000 knocked of !
Aug 8th 2007, 5:33 pm
#43
BE Forum Addict
Joined: Jun 2007
Location: Carramar in Perth's northern suburbs
Posts: 1,129
Re: australia morgages HELP !!
On the down side; when I'm 89 years old my 30 year loan will have cost me in total $749,409-27
.................. so I guess I'd better pay the bugger off quickly!
Aug 8th 2007, 7:59 pm
#44
Forum Regular
Joined: Feb 2007
Location: Gold Coast, QLD
Posts: 219
Re: australia morgages HELP !!
So you can get a mortgage if you are in full time employment after a short period of time, do they carry out checks? or how do they carry out checks?
Aug 8th 2007, 10:30 pm
#45
Where traffic lights rule
Joined: Aug 2006
Location: Brighton QLD
Posts: 2,460
