Jade & Kevin

Hi,

My names Jade, I am currently studying hard (accountancy) to be able to apply for our visas (designated area sponsored). My partner, Kevin, is a printer, and will be applying on the "back of" my visa as a defacto spouse.

Trying to do lots of research in the process, and was wondering, do any of you know how Australia banks work out the amount you can borrow for a mortgage? Is it similar to the Uk (ie 3.25 times a joint wage?).


Thanks!

Jade & Kevin

mlbonner

Hi there, welcome to the mad house

These links & extract may help you - there's also a first time buyers grant over there of $7k which you're eligble for if;
- are buying or building your first home
- are an Australian citizen or otherwise satisfy the FHOS (http://www.pc.gov.au/inquiry/housing/subs/subdr290.pdf) residence requirements
- intend to make the home your principal residence, and
start living in the home within a reasonable time.


http://www.immi.gov.au/settle/housing/index.htm
http://www.commbank.com.au/personal/...ngYourHome.asp

How much can I borrow?
The amount you can borrow depends on what you're buying, what you're earning and your other financial commitments.

If you're buying a home, you can borrow as much as 95% of the property's value. If you're buying land, you can borrow as much as 90%. (Lenders' Mortgage Insurance is required for loans more than 80% of the property's value, and conditions and limits apply.)

Your total income is also used to determine the amount you can borrow. To obtain an indication, try our How Much Can I Borrow Calculator.

In addition to the purchase price of the property, you should consider the additional costs, such as solicitor's fees and stamp duty. Our Total Home Buying Costs Calculator can give you an indication of what these may be.



Hope that helps

mlbonner

You might find this useful as well

http://www.infochoice.com.au/banking...s/default.asp?

walla

Hi Jade and Kev

I remember some recent threads about this and from what I can recall it's about what you can afford to pay per month. Don't think it is as black and white as the UK ie 3.5 x earnings.

Could be wrong thou, check the links you've been given and let us know the difinitive answer.

Walla

Jade & Kevin

Hi there,

Thanks for the replys. Websites are full of loads of great info. The websites seem to be asking for income and expenditure when working out the amount you can borrow.

I did a salary of $60K for me, and $30K for Kevin, with no outstanding debts, and the commonwealth bank came up with $477K, and Info choice with $607K. Quite large amounts!

I re did them both based on average wages of $30K each, and it came up with $305K and $357K. That's pretty good, guess we won't be living in a shed after all ;-).

The stamp duty is scary (which as far as i know will not apply to us as first time buyers), and it also came up with a high loan to mortgage value if you borrow more than 80% of the total price.

The only concern that i came across is that they ask for 2 recent payslips or group certificates for the last 2 years, OR a letter from your employer detailing income for the last 2 years. I wonder if a letter from the UK would cover this? If not, maybe they have exceptiond for migrants.


Thanks again for your help, wish the end of my study was not so far away ;-(.

Jade & Kevin

mlbonner

http://britishexpats.com/forum/showt...hreadid=237370

This may help you re. not having payslips etc. You'll probably find more info on that forum too if you do a search