mandy1963

does anybody know how easy it is here down under to get a 100% mortgage?
No funds left from house sale in the uk,and really want to buy a house but feel the only way to do this is a 100% mortgage.

sj oldfield

You can get 100% mortgage through the banks, do yourself a favour and do not touch the brokers!! Especially after all the recent trouble with RAMS

mysnix

They will give you 100% of the house value, but remember you will still need to find the stamp duty and fees and insurance (the hefty one for mortgaging for more than 80% of the house value) on top of that - I believe someone was offering 110% at one point but I can't remember who it was.

Nikki
x

hoofie2002

I personally wouldn't touch a 100% or more mortgage with a bargepole at the moment unless a) You have found an incredibly cheap house and b) You earn lots of money.

You will also have to pay mortgage insurance which protects the lender. If you cannot pay your mortgage, the bank will get their money back BUT the insurance company will still come after you for what they paid to the bank [guaranteed multiple 10,000's of dollars as the bank will sell the house at auction to cover their loss] - the insurance doesn't cover you.

Rates are high and probably will still go higher - better to rent and bank as much money as you can in an high-interest account until you are in a better position.

Timber Floor Au

Stamp duty is the ANKLE BITER and BUTT Cruncher !

I would recommend, renting for a while, get to grips with Australia, and the suburbs , and save a deposit.

Renting here does not in any way have the stigma it does within the uk, and has massive bonuses also..

To give you some idea, we are or will be about to part with 28k in stamp duty !!! so.. I can honestly say , do as previous poster said, and dont get a 100% mortgage, or higher.. save.. look around, shop around, do your sums.. and get what you want for what you want with what you have got..

Dont forget you can get 1st time buyers mortgage CASHBACK from government !!

Simba

We are just about to pay 10k in stamp duty and I thought that was enough.

Timber Floor Au

Its a bitch huh !!!!!

Mairead

Jeez sounds great to me. Im in ireland where everything is taxed heavily. Put it this way, the person who buys our house has to pay stamp duty 76,502.58 AUD!! Hmm maybe thats why i cant flipping shift it!!!!

acbh2

It depends how much you are earning! if you are earning way over a $100,000 then a 100% mortgage on a $500,000 house is noth9ing really! it depends on your income and the price of the house.

Good luck Axx

Dicko

Hi there we went this route about 12 months ago now, borrowed 100%, then with the first home owners grant and some tax back and basically scraping what limits we had on credit cards, we managed to get the stamp duty and mortgage insurance together, it basically crippled us financially

But worth it in the end as: what we paid for the stamp duty, insurance etc. you could triple that now with the equity we have in the house, we dont have much disposable income month to month but short term pain long term gain is my motto and I can honestly say if I had left it a year to try and save a deposit then there is no way we would have afforded the house we are in.

Try this little calculator it gives a great comparison

mandy1963

That has given me a bit of hopedid you go through a broker?if you dont mind me asking

Dicko

Nope, thru one of the big banks

Just ring them all and see what they say, or try a broker but beware as a previous poster, if it isn't one of the "big" lenders they could fold etc or need bailing out like Rams did

tictac

The numbers look good but it comes down to whether you view life as a means of making money or one for living IMO.

I'm all for being able to sit back smugly and thinking to myself "look at what I'm worth" (on paper), but most people also like to enjoy life.

If your lack of disposable income does not affect your ability to enjoy your life then you're very lucky

For most people, in order to enjoy a full life, they invariably will need to be able to put their hands on some cash once in a while.

Living 'on the breadline' and missing out on 'the fantastic aussie lifestyle' in order to be able to call oneself a homeowner does not sound like much fun and is surely at odds with most people's reasons for moving here in the first place.

Of course, your mileage may differ...

Dicko

Yes I suppose it is how much you value things in life, and believe me I am not a "smug" person who sits back and enjoys having a money on paper(I don't have much paper) , but as I have said many times before on this forum, life is what you make it, every single person who emigrates to Oz does so for their own reasons, the choices they make are down to what they alone feel is right. I have made dodgy choices in my life believe me, but if you make your own bed then it is you who has to lie on it.
I apologise if you get that impression of me, that I am "smug" trust me I am not at all like that, I was only trying to pass on a bit of personal experience to aid the original poster, I lived my life like this in England and continue to do so here, my choice.

Anyway the point I was making, was in answer to the original post yes it is possible to obtain 100% mortgages in Oz and yes I was trying to outline the pros & cons of doing so.

But thanks for your psychoanalysis of my personality from one post, it is much appreciated.

Cheers

mum01753

Was There something about stamp duty being waiverd for first time buyers and if the property was under $500,000. ????


Thought it was something like that anyone know?