emmakc1977

Hi,

When we get our VISA we won't be coming over with lots of cash (unfortunately) as we rent our home so have nothing to sell.

We should be able to get a deposit and would like to buy somewhere in Queensland. My husband is an electrician and I hope to have qualified as a solicitor before we leave so we should be on fairly good salaries (fingers crossed). Does anyone know how the mortgages work out there?

Do they work like they do in the UK i.e. 3.5 your joint salary?

Any info would be greatly received!

Emma

OzzieNurse

Cant help sorry, but if you find out can you let me know? We are in a similar position, renting and not much spare cash. We will be looking to get a mortgage as soon as possible and we also will hopefully have reasonable wages once we ahve both secured jobs in OZ

Wendy

We have been offered just over 4 times my hubby's salary, although he said we could borrow more if we wanted

kporte

wondering about this myself wendy. looking at your takehome pay, does four times seem doeable or a bit of a stretch? for us, 4 puts us in the price range for a decent house but worried about struggling

Sunny_Glesga

been thinking a bit about the mortgage situation myself, i reckon it will all depend on what your income will be and what you feel comfortable paying out along with all the usual bills that will be dropping on the door mat every month Where are you heading to kporte


BTW the wee avatar is excellent

themerlin

Yes they do like to offer silly amounts of money don't they, maybe one of the reasons house prices are so high.

Wendy

It will be an extra $200ish per month on what we pay already for rent. But then there is water and rates on top which I've factored about $2000 per year for (but that's quite high and it will be more like $17/1800 really).

We currently save around $500 - $1000 per month, so we can quite comfortable afford it.

Of course it may be different for you, so check it out thoroughly first.

Plus I've got the added advantage of not working yet, but I will do if we start struggling. I didn't want to take for granted that I'd have an income (then I can be lazy and stay at home. )

shears

realestate.com.au have loads of banner ads for mortgages. Have a look at this link - you can see how much you can borrow etc (they're mortgage brokers) - I suppose you'll need to have an idea of your wages first!
http://www.xinc.net.au/welcome/?reac...ing_power_logo

thebears

Over 20% deposit and you can complete no doc or low doc loans - so actually getting a mortgage should not be an issue - what should be in your minds is

If you take the desired mortgage - add 2% to the advertised rate - if the monthly payments (interest only) are more than 30% of your "net income" you cant afford it (unless you expect this position to be for a short term ie expecting large cash transfer from UK or an increase in income).

My advice - don't just assume a mortgage is right for you because the bank say so. Be smart.

ianandhelena

most of the bank websites have mortgage calculators e.g. ANZ, Westpac, National Bank etc etc.

geordie downunder

Usually around 30% of salary as monthly payments but they are flexible.

Pay the mortgage fortnightly and you save around 7 yrs on the payments.Instead of paying 12 months you pay 13 months in a year.

Interest is calculated daily so the more money you put in,the faster you pay your mortgage off.Have salary paid into your mortgage and live on a credit card,pay the credit card off at the end of the month with a redraw from the mortgage and you have reduced the interest payable for that month.NOT!!! to be used if you can't control your spending,you can end up in deep shit.

Offset accounts where you have say $5000 in,the $5000 is classed as reducing your m/gage so no interest is payable on that $5000,a tax free return of around 8%,depending on the m/gage rate.

If you don't have 20% deposit you will pay an insurance (mortgage insurance guarantee ,MIG,or whatever it is called now).This covers the bank in case of default and not you,vitally important.The third party car and MIG seem to mislead people that they are covered,they are not.

All the bank sites have info,ME bank is usually the cheapest,it is the superannuation system bank .

A line of credit m/gage gives you a lifetime revolving loan,capped at 80% of property value.Again not to be used for car purchases etc,unless you pay off the car at a similar amount to what the finance company would want on a 4-5 year loan.No point in turning a 5 yr loan at a higher interest rate into a 20 year loan at a lower interest rate.

Loads of different m/gages,you'll find one to suit.Good Luck.

BobbyK81

Hi all,
How long d'you have to be working there to get a mortgage? My girlfriend & I are assuming we'll have to rent for at least a year, probably not taking much in the way of savings, I'm an electrician so hoping to have a job, as an electricians mate, to start when I get there n then onto a sparkys wage.

Caroline G

The interest rates are higher in Oz than in the UK. Have you considered remortgaging your UK property to raise some funds as a deposit for a property in Oz. If you tell the bank the true purpose of the loan they may refuse it but if you say it's for home improvements they probably will - and they don't come round to check!

It may also be worth converting your current loan to interest only 1) To reduce the monthly instalment and 2) In order to claim full tax relief which is worked out on the interest element only.

Please note - I am not a financial advisor so if you think these points may help you please discuss them with someone who's qualified.

tabby

Hi

we had a home loan offer within 2 weeks ofarriving and we had no jobs ......Feel free to Pm for more details


Martin

SharonN

same as Tabby. They do a similar thing to self certification in the UK . Bit scarey really !!!