evorobin

We're taking out a mortgage on the house we own. It's our first mortgage although we lived here for two years. Anyone got a good deal on a mortgage recently and if so what?

Also if you have a mortgage currently that you consider extremely competative please share?

Thanks

ABCDiamond

Are you looking for a Fixed rate OR a Variable Rate ?

The best 5 year fixed rate is currently with St George Bank, at 6.95%

downunderpom

Are you nuts? :scared:

Don't do it! Why take out a mortgage when you don't have one and your house is paid for? Most of us are trying to get into your situation!

evorobin

Firstly I'm 29 and the house sadly isn't paid for. When we arrived in OZ we borrowed money from the inlaws as we already had a decent deposit but couldn't get a mortgage due to having just arrived. They have been great as it cost them nothing to do although now we have stable incomes we want to pay them back and get our own mortgage.

We were lucky they had the equity to secure the money so that we got in before prices peaked. It will be two years since the auction very soon, doesn't time fly:scared:

downunderpom

Oh bugger! That'll teach me to jump to conclusions.

Still, 2 years on you'll probably take out less than 50% of the value for a mortgage. Have a look for a 'non-status' mortgage. That's not tied in to your earning at all. Basically you have a huge chunk of equity, so the lender doesn't give a toss if you can afford the mortgage or not. If you can, he gets his interest. If you can't, he forecloses, and gets your house. He's happy. It gives you a LOT of bargaining power, to get the best deal.

ABCDiamond

Problem with a non status mortgage is that the interest rate is often a bit higher, so you have to look at them carefully.

Adelaide Bank have got an introductory rate of 4.99% for 6 months at the moment, according to www.yourmortgage.com.au

downunderpom

I've found them to be LOWER - they're less of a risk to the lender. You also want to make sure that any 'discounted' rate doesn't leap up after the honeymoon period, and also watch out for early repayment penalties.

ABCDiamond

Hi, can you let me know which one you have seen, we are with the St George, and they quote a higher rate. We've maxed out at our earnings, but still have equity to borrow against, but cant find anything at the right rates.

I agree with the rates going up after the honeymoon period, the Adelaide Bank goes up to their normal standard variable of 7.07% after 6 months.

downunderpom

Sorry ABC - I should have specified that I was talking about when I was investigating the costs in the UK, I found them lower. My mortgage here (organised from the UK befoe we got here) is with CBA. Dunno what the % is at the mo, as we're in the throes of renegotiating. But I do know that I get a 12 month honeymoon period (just out of our last one, which was 12 months, also.)

ABCDiamond

You raised my hopes there
It looks like the UK banks are more sensible about it, or don't try to rip you of as much. Unfortunately the OZ banks dont seem as hospitable. They want every cent they can get out of you.

It's good that you can pre arrange mortgages before you leave the UK, I wasn't aware that could be done. It may be of use to others on here. Did you have a Job pre arranged before you got here ?

BookBear

We jumped straight into the deep end with a variable Line of Credit / All-in-One mortgage with Westpac. If you try to spend less, and really keep an eye on your budget it works out really well.

We went through Loan Domain, Briony was very helpful and even did a home visit.

Good luck.

downunderpom

Nope!!! Well, not when organising the mortgage, anyway.

Saw the property we wanted. Did some asking around, got a contact name, emailed him, (CBA are the only Oz bank to have a specific 'UK buyers wanting Oz mortgages for Oz properties' division.) Sent off (self employed) accounts, got the mortgage.

Ta! Da!

Then, about 6 months AFTER we got the mortgage, got offered the job here (over the phone..... jammy git or what!) and we landed two weeks later.

Bought 116 acres in the Blue Mountains, and owned it for over 6 months before even setting foot on it. Crackers! Worth it, though. It's fabulous!!

ABCDiamond

That type of loan can be very useful, but a word of warning to those who love to shop...... As Nara says; "if you can keep an eye on your budget it works out really well", but if not, you can have problems. And your lender should explain that before you sign....

If you cannot stop yourself spending, get a standard mortgage with a 100% offset instead.

ABCDiamond

I'm lost for words !!!!!
You lucky b*gg*r

If only I had known about the CBA UK bit, a few years ago.......

This info NEEDS to be advertised.

downunderpom

(Snicker!) Isn't that what I just did?

And before you ask - nobody had asked me before!