Australian/UK Bank Accounts
Apr 28th 2004, 12:12 pm
#1
Forum Regular
Thread Starter
Joined: Mar 2004
Location: Samsonvale, Brisbane, QLD
Posts: 49
Australian/UK Bank Accounts
Hi there everyone!
We have just received our PR visa's in our passports
Going to Brisane end of June on "look,see,decide" mission.
We have decided to open an Australian H.S.B.C account. Does any one know if it is necessary or advantageous to have a U.K H.S.B.C account as well, we bank with Barclays at present.
we would like to set up a mortgage before we go on our "mission" in case we want to purcase a property whilst we are there. We have some funds available but have been told it is an advantage to have a mortgage for tax reasons in OZ, is this true?
Does any one know how we can go about arranging a mortgage,
does it have to be set up in the U.K or can it be done in OZ?
We will be gratefull of any advice
cheers!:
Kay and David
We have just received our PR visa's in our passports
Going to Brisane end of June on "look,see,decide" mission.
We have decided to open an Australian H.S.B.C account. Does any one know if it is necessary or advantageous to have a U.K H.S.B.C account as well, we bank with Barclays at present.
we would like to set up a mortgage before we go on our "mission" in case we want to purcase a property whilst we are there. We have some funds available but have been told it is an advantage to have a mortgage for tax reasons in OZ, is this true?
Does any one know how we can go about arranging a mortgage,
does it have to be set up in the U.K or can it be done in OZ?
We will be gratefull of any advice
cheers!:Kay and David
Apr 28th 2004, 12:33 pm
#2
Guest
Posts: n/a
I've just sent you a PM with a contact email for one of the HSBC mobile lenders. He should be able to advise your best options on the mortgage.
Regarding an "advantage to have a mortgage for tax reasons in OZ" ?
I'm stuck with that one, but i'm pretty tired now, so may be missing something. I'll turn my brain back on tomorrow
What parts of Brisbane are you looking at so far ?
Regarding an "advantage to have a mortgage for tax reasons in OZ" ?
I'm stuck with that one, but i'm pretty tired now, so may be missing something. I'll turn my brain back on tomorrow
What parts of Brisbane are you looking at so far ?
Apr 28th 2004, 12:41 pm
#3
Born to be ignored
Joined: Sep 2003
Location: Anstead, Brisbane
Posts: 1,138
If you want a mortgage with HSBC in Australia, you will have to have a source of income.
The chappie ABC is referring to was round here last night. The lending criteria is different here, and if you are self-employed, it doesn't matter how much deposit you have, they only take income into account.
They also include credit limits on your credit cards as a liability. E.g. we still have a UK credit card which we don't use much (just for buying presents back home) and always pay it off each month, but because we have a high limit, that gets deducted from the amount we can borrow.
I think the tax advantage you're referring to is negative gearing and applies to investment homes. If you're renting out a house and pay more in mortgage/cost etc then you're getting in in rent, then you can offset the loss against your tax bill.
Jane
The chappie ABC is referring to was round here last night. The lending criteria is different here, and if you are self-employed, it doesn't matter how much deposit you have, they only take income into account.
They also include credit limits on your credit cards as a liability. E.g. we still have a UK credit card which we don't use much (just for buying presents back home) and always pay it off each month, but because we have a high limit, that gets deducted from the amount we can borrow.
I think the tax advantage you're referring to is negative gearing and applies to investment homes. If you're renting out a house and pay more in mortgage/cost etc then you're getting in in rent, then you can offset the loss against your tax bill.
Jane
Apr 28th 2004, 1:06 pm
#4
Guest
Posts: n/a
Originally posted by JaneandJim
They also include credit limits on your credit cards as a liability. E.g. we still have a UK credit card which we don't use much (just for buying presents back home) and always pay it off each month, but because we have a high limit, that gets deducted from the amount we can borrow.
They also include credit limits on your credit cards as a liability. E.g. we still have a UK credit card which we don't use much (just for buying presents back home) and always pay it off each month, but because we have a high limit, that gets deducted from the amount we can borrow.
Two ways actually.
1: The hard way. You need to convince the lender that they do not need to take it into account as you do not use it as an ongoing credit card as such. Convincing some of them is difficult, to say the least, but once they can follow the logic, and refer it to a higher authority, it is usually OK
2: The way suggested by a St George bank lender. Promise to cancel the cards, after the mortgage is done and then switch over to the credit card that they give you when the mortgage is approved !
Oh yes...
3. Ask your Credit Card Bank to reduce the limit to say $100 or whatever you need, and then get it increased again after the mortgage is approved.
All three ways do work
My brain is back in gear again
Apr 28th 2004, 4:06 pm
#5
Banned
Joined: Feb 2004
Location: Somerly,Perth
Posts: 545
4. Dont tell them.
Apr 28th 2004, 8:20 pm
#6
Forum Regular
Thread Starter
Joined: Mar 2004
Location: Samsonvale, Brisbane, QLD
Posts: 49
Re: Australian/UK Bank Accounts
Originally posted by kaydave
Hi there everyone!
We have just received our PR visa's in our passports
Going to Brisane end of June on "look,see,decide" mission.
We have decided to open an Australian H.S.B.C account. Does any one know if it is necessary or advantageous to have a U.K H.S.B.C account as well, we bank with Barclays at present.
we would like to set up a mortgage before we go on our "mission" in case we want to purcase a property whilst we are there. We have some funds available but have been told it is an advantage to have a mortgage for tax reasons in OZ, is this true?
Does any one know how we can go about arranging a mortgage,
does it have to be set up in the U.K or can it be done in OZ?
We will be gratefull of any advice
cheers!:
Kay and David
Hi there everyone!
We have just received our PR visa's in our passports
Going to Brisane end of June on "look,see,decide" mission.
We have decided to open an Australian H.S.B.C account. Does any one know if it is necessary or advantageous to have a U.K H.S.B.C account as well, we bank with Barclays at present.
we would like to set up a mortgage before we go on our "mission" in case we want to purcase a property whilst we are there. We have some funds available but have been told it is an advantage to have a mortgage for tax reasons in OZ, is this true?
Does any one know how we can go about arranging a mortgage,
does it have to be set up in the U.K or can it be done in OZ?
We will be gratefull of any advice
cheers!:Kay and David
Apr 28th 2004, 8:28 pm
#7
Forum Regular
Thread Starter
Joined: Mar 2004
Location: Samsonvale, Brisbane, QLD
Posts: 49
H.S.B.C Bank
Had a good meeting at HSBC Bank today, they were very helpful and arranged for us to open an off shore account with them. They also contacted their International Branch and gave them the details so that they can send us all the necessary forms to fill in. So let's hope it all works O.K
Apr 28th 2004, 10:47 pm
#8
Forum Regular
Joined: Mar 2002
Location: essex now on the sunny coast
Posts: 232
What was the reason behind an offshore account, I was under the impression they had no tax advantages in Oz.
HSBC AU. has online forms to open accounts which you can get up and running in a matter of weeks if the branch in the Uk. know what to do.
Terry
HSBC AU. has online forms to open accounts which you can get up and running in a matter of weeks if the branch in the Uk. know what to do.
Terry
Apr 28th 2004, 11:46 pm
#9
Born to be ignored
Joined: Sep 2003
Location: Anstead, Brisbane
Posts: 1,138
Originally posted by ABCDiamond
There is a way around the credit card problem, if you pay it off in full each month.
2: The way suggested by a St George bank lender. Promise to cancel the cards, after the mortgage is done and then switch over to the credit card that they give you when the mortgage is approved !
Oh yes...
3. Ask your Credit Card Bank to reduce the limit to say $100 or whatever you need, and then get it increased again after the mortgage is approved.
All three ways do work
My brain is back in gear again
There is a way around the credit card problem, if you pay it off in full each month.
2: The way suggested by a St George bank lender. Promise to cancel the cards, after the mortgage is done and then switch over to the credit card that they give you when the mortgage is approved !
Oh yes...
3. Ask your Credit Card Bank to reduce the limit to say $100 or whatever you need, and then get it increased again after the mortgage is approved.
All three ways do work
My brain is back in gear again
I just hadn't realised it would be taken into account and it knocked quite a dent in our borrowing ability. They had a strange way of calculating our maximum loan. Jim will earn gross this year roughly the same amount that we were looking to borrow and pay back over 25 years, but the HSBC guy told us that would be pushing it!
Jane
Apr 28th 2004, 11:59 pm
#10
Guest
Posts: n/a
Originally posted by pompeywill
4. Dont tell them.
4. Dont tell them.
Funny that,..... I even forgot to tell the bank about my UK card when we got our mortgage
As an example of how credit cards affect your borrowing:
From information obtained from St George Bank
A credit card with a $10,000 limit will REDUCE your borrowing power by about $60,000.
Apr 29th 2004, 12:05 am
#11
Guest
Posts: n/a
Originally posted by JaneandJim
But 2 would be an Oz card, I want to keep my UK one for buying presents on the internet for family in the UK. We'll be going for option 3.
I just hadn't realised it would be taken into account and it knocked quite a dent in our borrowing ability. They had a strange way of calculating our maximum loan. Jim will earn gross this year roughly the same amount that we were looking to borrow and pay back over 25 years, but the HSBC guy told us that would be pushing it!
Jane
But 2 would be an Oz card, I want to keep my UK one for buying presents on the internet for family in the UK. We'll be going for option 3.
I just hadn't realised it would be taken into account and it knocked quite a dent in our borrowing ability. They had a strange way of calculating our maximum loan. Jim will earn gross this year roughly the same amount that we were looking to borrow and pay back over 25 years, but the HSBC guy told us that would be pushing it!
Jane
Jane, i'll send you a PM with another brokers details, he specialises in Investment property, but it may be interesting to find out how much different he can do.
