casper2003

Hi everyone!

Just relocated to south OZ.

I don't want to get stuck in the rental roundabout and have been looking at oz mortgages. The problem is I don't know the difference between LOC, Low Doc, Offset etc. Can anyone suggest the correct avenue to try?

Cheers Cas.

Gary / Terri

Cas
without a doubt what you should do is get all the facts from an expert ie: the bank it costs nothing to ask a few questions. However having just been through a similar process I can advise this is all to do with proof of earnings etc etc ie if you are earning and not on a probationary period and are able to show wage slips for the last 6 months then this is a standard mortgage, however if you are self employed or using savings to fund yourself then you will need a low docs or no docs loan...its the same they just will charge you more for what they see as a greater risk however if it helps ING Bank are offering low docs at 7.07% and HSBC are offering slightly better but you do need to have a history with them and pester the head office so that they will recognise this....hope this helps
Gary /Terri

ABCDiamond

LOC = Line of credit. This is like a massive Credit card. You need to be financially mature for this.

Low Doc = You need minimum documents to get a mortgage this way, but you normally cannot borrow as much.

Offset; Two types of offset accounts are around. You need the 100% offset. This is where whatever you keep in your offset savings account, is offset against your mortgage before they calculate interest. eg: If you have a 100,000 mortgage, and 10,000 in your savings account, then they only charge interest on the 90,000

Talk to a good broker, you need a recommendation in your area.

HiddenPaw

Try a nationwide broker such as Aussie Home Loans:
http://www.aussiemortgagemarket.com.au

They can give you advice on products and whether you should be speaking to a bank or other type of lender. With no Aussie financial or employment history, you may be referred to a non-conforming lender rather than a bank, since you may not meet the traditional lending criteria of a bank - but they will be able to help you and tell you what's best for you. Low docs are targeted at migrants, self-employed, etc - anyone who doesn't have the paperwork/history to back up a 'traditional' application.

Low doc and non-conforming loans will be at slightly higher rates than standard bank rates - because you are classed as a higher risk borrower - how much higher the interest rates are depends on individual circumstances (how much deposit, documentation, etc. ) A non-conforming lender like Liberty Financial will assess each case individually, not just thru a computer system.

jhilly

Cas,

As a fellow South Australian I know how you feel. We got knocked backs from banks and found brokers unintersted. But I'm happy to say that we eventually found someone that could be bothered to listen.

I had been working here then for abot 4 months and needed to borrow about 50% of our homes value. Within 24 hour hrs we were presented with 3 options, all being standard products from large banks.

A friend in NSW is now using him. They have Foreign Investment Review issues and they seem happy too.

His email is [email protected]

Banks are the same as immigration agents, unless there is a quick easy $ in it, they're not interested!

Hilly.