Fly Away

Hi all,

As usual, we've been mulling over the possible scenarios when we (eventually) get to Australia.

We will hopefully be in the lucky position of having a lump sum from the sale of our house and business. We were wondering if it may be a good idea to intially buy a house outright to save the hassle of applying for a mortgage when we may not have jobs etc.

Eventually, we are hoping to open our own business again and would need some of this equity back in order to do so.

So the question is, is it common practice in Australia to take out a mortgage on a property you already own. If so, is this easy and what is the usual procedure?

Thanks for your advice.

BullcreekBob

G'day

Yes it is both quite common and quite easy to do.

The easiest way is to contact a Mortgage Broker at let them do all the running around for you.

Cheers
Bob in Bull Creek

Suni&Jay

You can go for a low doc/no doc mortgage by putting down 60% of the cost of the house. You can then borrow up to 80% of the house value - the mortgage amont. Does that make sense?

Fly Away

Thanks both!

I am now reassured that it is possible.

The put down 60% and then withdraw up to 80% option sounds perfect! And yes it makes sense. LOL.

Thanks again!!

longreach

Actually you can get a low doc with a 30% deposit. This means that you don't have to prove your income (although you still obviously have to be able to afford the repayments).

Re-mortgaging is quite common and generally not a difficult process. It is worth keeping below the 80% mark to avoid mortgage insurance however.

Good luck,
Mark.

worzel

Why not take the biggest mortgage you can and put your savings into a mortgage offset account. That way it reduces the interest but gives you easy access to your money.

Fly Away

Thanks again - both good suggestions, we are offsetting at the moment - which is great. However, we were going to try to tie some of cash up so we couldn't squander it!! Especially as some of it will come form the sale of our business.

It sounds like the mortgage products are very similar to the UK. I used to work in mortgages so I have a basic idea of the way things work - but thought it might be drastically different in Oz.

The low doc option is equivalent to self cert then?

allenthomas

with reference to you mortgage enquiry - you can take out a low or no doc loan but will pay pay a higher interest rate - would recommend a redraw loan where it acts similar to an overdraft use it or not its up to you - only pay interest on the amount owing as you should have a large deposit should not be a problem getting a mortgage
ps i am expat that is now a mortgage broker over here- good luck