FAQ About Mortgages in Australia

FAQs

How we help

Banking policies for mortgage lending have significantly changed in 2022 and are continuing to do so into 2023.

Policies for expats living outside of Australia have not only tightened, but differ significantly between lenders. The good news is- we work with banks which are still lending.

Dealing with a Singapore based, Aussie mortgage expert (MFAA approved broker) provides an easy path to the best Australian mortgage. Here’s a few things to consider:

We can find a solution quickly

Everyone knows shopping around could lead to a better deal but it’s time consuming, especially if it involves contacting a number of banks and lenders.

You have choice

We can search the range of loans available from multiple lenders very quickly to find you the right home loan for your needs.

We can translate bank jargon

We can also work through the varying lender policies and procedures which are often complicated and vastly different among lenders.

One central point of contact

We work with you for the entire mortgage process.

Our strategy

We’ll find you the best home loan possible at a lender that will approve you.

Loan Eligibility

Tips:

Providing the correct eligibility information will ensure your path to approval is easier.

In 2019, Australian banking partners heavily shifted their focus towards outgoing & cost of living expenses more so than in the past.

For Aussie expats in particular:

• high existing rental payments,

• existing loans,

• private school fees and

• credit card limits (even if you clear them each month) all can have a significant impact when it comes to loan assessment.

Think prudently about your ongoing commitments if you intend on financing a property bank home in Australia. In many cases, borrowers with a healthy expat income can be impacted by normal cost of living expenses associated with living outside of Australia- especially those expenses which are not covered by expat employers.

For example:

Rental: if your rental in Singapore is say $8k per month- this is pretty much the equivalent to having existing borrowings in excess of $1mil from a bank assessment perspective.

Credit card limits:  Many banks offer ridiculously high limits which are often rarely used. Lenders will equate a % of the actual limit (not the balance) and use this in your case assessment.

In many cases, you can reduce your monthly outgoings with simple restructuring or reducing commitments. This may well allow a more favourable loan assessment outcome.

In summary, dealing with an Aussie bank directly whilst overseas can have its challenges! Whether its banking staff or borrowers potentially unaware of overseas lending policies, both can have a detrimental outcome on your loan approval. Don’t go it alone! Use an expert to facilitate your Australian Home Loan requirements.

The essential info you will need

For SG Salaried Employees:

• Last 3 months payslips

• Bank statements for 3 months showing the corresponding salary credit (** Banks will no longer accept internet print outs without full name & address of applicant)

• Copy of current employment contract (**Must show full employers name, address & contact details)

• Copy of passport (** Including stamped travel pages)

• Copy of NRIC or Employment Pass **Front & back copies)

• Copy of contract of sale (**if purchasing)

** All documents provided must be in clear legible PDF format

For SG Self-Employed:

• Call us to check on your eligibility

Aus Stamp Duty

Stamp Duty is payable on purchases of properties:

• Stamp Duty on the Transfer of Title, which is charged by state governments and paid by the purchaser.

• Stamp Duty concession may be applicable if you’ve purchase off-plan.

The duty varies by state. The information on Stamp Duty or eligibility for an exception by state, is available on the following websites:

• NSW – www.osr.nsw.gov.au
• VIC – www.sro.vic.gov.au
• QLD – www.osr.qld.gov.au
• SA – www.revenuesa.sa.gov.au
• WA – www.finance.wa.gov.au
• TAS – www.sro.tas.gov.au
• NT – www.revenue.nt.gov.au

The Loan Process

Most financial institutions will grant you one of the following:

• A pre approval generally within 10 business days which will allow you to shop around for a property.

• A conditional approval generally within 10 business days .

• A formal (unconditional) approval within seven business days depending on the valuation of the property.

Fixed Rates

Most lenders allow you to secure a fixed rate providing you complete a Rate Lock Application and pay a small fee. This tends to vary according to which lender you use.

Aussie/NZ Citizens

• Aussie & NZ citizens living outside of Aus can still easily obtain an Australian home loan-but there’s a few things you need to be aware of :

  • • 2021 banking policies have significantly changed for Aussie expats but the good news is Aussie banks are still lending

  • • Banks have varying assessment policies for Aussie & NZ Citizens

  • In short, mortgages that can be easily approved at one lender may not meet servicing criteria at another.

Aussie PR

• Australian permanent residents living outside of Aus have similar requirements as citizen’s although:

  • • Banks will need to see evidence of your Australian PR  visa is indefinite with no restrictions

  • • Banks have varying assessment policies for Australian PR’s including minimum income levels. Call us for more info

  • In short, you’re likely to be an exception case for Australian banks

Loan Types

You can have a combination of fixed and variable rate OR either facilities with many of the lenders products. Generally, 100% offset accounts are aligned to variable rate loans.

Lender Fees

It really depends on the type of loan that you take out. Most lenders are different and from time to time have various offers.

• An establishment fee

• An Annual Package Fee which is paid when the loan is established and at each anniversary

• Government Charges which vary from State to State

Online Banking

The majority of lenders allow complete internet access to all of your banking accounts including your lending. We will gladly assist you with having this set up and operational once your loans settles.

Loan Repayments

There are a number of ways that you can make repayments to your loan.

Generally, the most desired format by way of lenders is by way of automatic direct debit from your nominated bank account. We will ensure this is all in place for you once your loan settles.

Other means are as follows:

• Direct Salary Crediting

• Internet Transfer

Solicitor for purchases

If you have purchased a property you will need to appoint a solicitor in some states or a registered property conveyor to act on your behalf. We can guide you on how to locate a solicitor or property conveyor in the various states.

Pre-Approval:

We recommend that you obtain a Pre Approval before looking for a property.

This will give you peace of mind that you have a loan approved as well as knowing how much you need to spend without exceeding your budget. Generally, a pre approval with a lender will last for 90 days.

If you’re still looking after this period we can simply request it be extended by providing updated financial information.

Our Free Service

Our home loan service is at no charge to our customers as lenders pay us  a commission on home loan settlement. This doesn’t affect the deal you get from the lender.