sutty77

Just out of curiosity, can you get 100% mortgages in oz or if not what is the least deposit you would need to have to put down??

Thanks

Reaver

I dont know the answer to your question, but IMHO, if you need 100% mortgage, then you're not really in a position to be going.

I dont know what the average is, but from my understanding you need a large chunk of change behind you before you even consider leaving the country. Personally, I have a figure of around £50,000 that I would consider a bare minimum. With that I would hope to pay my rent for 6 - 12 months, plus have some left to pay travel expenses. However I understand you have been been before, but thats just my opinion.

EvannTel

Most loans require 15-20%

Sunshine7

I believe the Commonwealth Bank is happy with a 10% deposit - not sure if they go as low as a 5% though, may be worth asking

jezandem

Whaaat

I always find it best not to give an answer, if I don't know the answer!!
Just my opinion

chris955

You wont find a 100% mortgage anymore, not with a sensible interest rate anyway. 10-20% deposit is the norm now after the GFC.

Max&Ozzy

I think you're right, if not even a bit conservative. It won't go far if anyone intends buying a house. 50,000 uk is about $75,000 now. A $350k house would chomp $70k off that on a 20% deposit. And lets be realistic, a $350k house is very much at the lower level of the housing market in almost every area of the country now. (and no, I don't won't a housing debate. I've bought & sold and researched plenty of times in plenty of states)

Until you start earning $'s any money brought over with you moves out of your hands faster than you'd feel comfortable about.

tawkins1

We have just got a mortgage with commonwealth. We had to find 20% to avoid paying mortgage insurance (which i believe would have been approx $10,000) They would have accepted 10% but with an interest rate of 7.81 I think i'd reather pay off as much as I could

spottydog

Maximum LVR is 97% these days (at CBA from June) but you have to pay LMI above 80%.

Most the banks want to see genuine savings so you can't "borrow" the money from a relative or use the FHOG for the balance.

The best thing to do would be see a good mortgage broker who will be able to assess your individual circumstances

JAJ

100% mortgages are a bad idea. Rent somewhere (relatively) cheap and save up the deposit.

saxtonj

97% is maximum i've seen.

95% are pretty easy to get.

I agree, rent and save the difference you'd be paying in Mortgage and you'll have deposit in no time.

Also consider the interest rate as historically i believe interest rates have generally been higher in Australia than UK.

LMI can be pretty expensive the less deposit you have. But you can add it to the mortgage if you wish.

There is a fair amount in the way of fees etc, and Stamp Duty will also whack you depending on price of house you're going for.

Expect to pay fees for settlement agents etc as well. It all adds up. Add another 50% of deposit amount to cover other costs i reckon.

So if deposit amount is $20k - expect to pay $30k ish in total. The bank will expect to see the deposit (full amount ) untouched for 3 months in your account.

Sunshine7

On a positive note though, remember if you are buying your first Australian home (as a PR) you will be eligible for a grant of $7000 plus you will not have to pay stamp duty, which will save you many thousands!

saxtonj

You do pay stamp duty - but it's at a reduced rate.

Sunshine7

It must depend on the cost of the house - I think perhaps you pay nothing if it's under $500K - certainly we paid absolutely nothing when we bought our first home a few months ago (it was under $500K)

Edit: just checked and you pay no stamp duty in WA if the house is under $500k (on your first Australian house)

In Exile

sorry just playing devil's advocate, but that is not a positive note.

The implementation of the FHOG has done nothing but increase the cost of houses well over the alloted grant amount. Sure psychologicvally its nice that someone gives you seven grand, or maybe more, but these days you are paying far more than you would/should for the house, directly because of it, increasing the overall debt you have in the long term.

http://www.communityhousing.com.au/resources/FHOG.pdf
http://www.crikey.com.au/2009/01/16/...ousing-prices/

personally I think they should have abolished the FHOG when Rudd came in, not doubled it. Let the market drive the cost. not grants and handouts

On a positive note: one thing I love is offset accounts. To those people who are considering using all their money as an initial deposit, do the calculations for one of these:

You can get a similar repayment amount and term if you simply pay a smaller deposit, take a bigger loan but have a lump sum of money sat in the offset account. This nets off the interest you pay, so its like you've paid your full deposit, but it leaves you with available capital should you need it, at a much cheaper rate than a personal loan. (EG new car, renovations, unforseen expenses, porn, holidays etc)