Mortgage Advice
 

We are looking for some advice/experience on buying in Oz. I have just been reading a magazine article where it discusses planning your mortgage ahead of your move. Does anyone have any experience of this? It states that getting an mortgage pre-approved before you leave your job in the UK would be advantageous. It has thrown us into some confusion as we were planning on renting until we had aquired a reasonable credit rating. Any feedback guys would be greatfully appreciated!!

Re: Mortgage Advice
 

We got a mortgage offer before we arrived in the country (we actually found and bought a house whilst we were on a reccie). However, in this case we have a relatively high deposit and low income multiple. A bank will offer you an amount in principle provided you can show them an offer of employment (showing the salary).

I probably wouldn't recommend trying to do too much paperwork in advance as it is a nightmare dealing with all the paperwork, especially with the time difference.

Re: Mortgage Advice
 

I would ignore that magazine article if I were you.

Also - If I were moving to Oz I'd be in no hurry to buy whatsoever. Leave it for about 18months or 2yrs, and save / invest in the mean-time....this will also give you lots of time to look around.

just my opinion though !
cheers

Re: Mortgage Advice
 

Hi Bella

I am a mortgage broker covering the Brisbane, Toowoomba and Gold Coast areas. In general terms a lender wont entertain you unless you have proof of income over here, or for a low doc an ABN number.

Some lenders are fussy on what type of visa you have, what amount you are putting into the deal, how long you have been employed in current job. They all have their own lending criteria.

There are problems of course trying to arrange a mortgage offshore. Your foreign income cant be relied on as in normal cases that will be gone once you leave the UK; so lenders wont look at it. They also might not look favourably on your status as offshore as opposed to on shore. ie You may have a PR visa, but until you are onshore you are not a Permanent resident ie Your visa hasnt been validated.
It easy for anyone to say..."Based on the likelihood of you getting a job in such and such, paying 'x' amount; with a PR Visa; with so many dependants....we can pre-approve you for $xxxxxxx
But it means nothing. Until you fill in the application, take up the job, show then the payslips, identify the property etc etc....it's meaningless in my opinion.

Your best idea is to arrive and find your feet and talk to a broker about all the options available to them. New immigrants are treated differently by many lenders and it's worth exploring the best routes with a broker who specializes in this market, like myself, who can give you all the facts.

You can PM me if you wish to discuss in more detail any scenarios you have.

Good luck with the move. The mortgage shouldnt be a worry for you before you arrive; you can work on that once your here. Remember what they say. "Dont sweat the small stuff":thumbsup:

Cheers

Steve

Re: Mortgage Advice
 

Why not rent for 6mths, find your feet, know where you want to live and then worry about the loan? Much easier and that way you don't rush into a purchase that you may later regret.

Re: Mortgage Advice
 

I agree with Stephen, when we first arrived even though we had enough money to purchase a house outright it was tied up in the UK for 3 months. We approached the banks as we had seen a property we liked and said that as soon as the money arrives we would pay the mortgage off, unfortunately this was not satisfactory for them.
I would recommend a lo doc mortgage once you have arrived and seen which suburb you would like to live.

Re: Mortgage Advice
 

Thanks for all the advice everyone, I really appreciate it. Renting to begin with was always the plan and that article made me 'sweat the small stuff!!' Have always been concerned by getting off the property ladder in the UK and it being a while before it happens in Oz. The way I think of it now - a house in the sun is a house in the sun whether it is rented or owned!! :):)

Thanks again everyone especially Steve, this forum is fantastic counselling!!

Re: Mortgage Advice
 

HI STEVE, I JUST READ YOUR POST, DO YOU THINK I WILL HAVE A PROBLEM GETTING A MORTGAGE ON A 496 3YR TEMP RELATIVE SPONSOR VISA. FOR THE HOUSE PRICES WE HAVE BEEN LOOKING AT WE WOULD HAVE MORE THAT 50% DEPOSIT, WHAT DO YOU THINK, WE ARE GOING BACK TO NORTH COAST NSW. THANKS IN ADVANCE

Re: Mortgage Advice
 

As steve says above you need proof of an Australian income. 3 months to be precise. Just give Mortgage Choice (i used them and were very helpful) a call when you land - they are alot easier to arrange than the UK and its alot quicker. Pre-Approval is not automatic right - they will re-assess at the time of application again.

I would rent to start to get your 3 months pay slips, tax number, medicare etc etc that you all need to get the mortage - this will give you time to find a house for your needs, and the best suburb to suit your lifestyle. Trying to apply without the standard lending critera met will cause more headaches than renting for a couple of months.