LoopyLauren Posted November 5, 2014 Report Share Posted November 5, 2014 HI, Still awaiting application, But we wondered about mortgages.. Do you have to be in the country for some time before banks will lend via mortgage etc?? Also a rough idea on house price would be fab..... Average area, nothing flash, 4 bed family type home,.. what sort of price would you be looking to pay? We are trying to plan a little.... Any help would be fab.... Cheers Quote Link to comment Share on other sites More sharing options...
Raychelsb Posted November 5, 2014 Report Share Posted November 5, 2014 HI, I arrived two weeks ago and during my meeting at the bank to collect our cards (NAB) we just enquired about mortgages too, to forward plan. The advised us that we would need to be in employment for 3 months before a bank would look to lend, and we would need at least a 5% deposit, 10% preferably, and would need to take out lenders insurance to protect the bank - if we failed on the mortgage payments and the bank had to sell the house, the insurance is to ensure the bank gets back what it gave us. So the more deposit you have the better, and the longer you have been in secure employment the better. I have read posts on here that a mortgage broker is a good idea to get you the best deal. I think that is what we will do. Good luck with the process of everything x Quote Link to comment Share on other sites More sharing options...
LoopyLauren Posted November 5, 2014 Author Report Share Posted November 5, 2014 Cheers for that xx Good luck your end too! Quote Link to comment Share on other sites More sharing options...
Nutnudger Posted November 5, 2014 Report Share Posted November 5, 2014 It's important you understand what LMI is because this can add $20 $30k to you mortgage, and if you end up losing the house the bank will claim on the insurance, but you will still be be chased by the lender for the money, LMI offers you no protection at all, not wanting to be alarmist, it's important you understand what your paying for if you have more then 20% deposit you won't pay any LMI at all Quote Link to comment Share on other sites More sharing options...
Nutnudger Posted November 5, 2014 Report Share Posted November 5, 2014 Have a look on here should give you a good idea of price http://www.realestate.com.au Quote Link to comment Share on other sites More sharing options...
stu4668 Posted December 15, 2014 Report Share Posted December 15, 2014 NAB said that to us initially but when I spoke to someone higher up and they realised I had a substantial deposit the 3 month rule of working was soon waived. Quote Link to comment Share on other sites More sharing options...
elfie Posted December 15, 2014 Report Share Posted December 15, 2014 You if you can pay the LMI up front so not to add to your monthly mortgage repayment also be aware that capital gains is payable on property over $430k that will also add to monthly mortgage payment if you cant pay it upfront Quote Link to comment Share on other sites More sharing options...
Druid Posted December 15, 2014 Report Share Posted December 15, 2014 Another problem with LMI, its not transferable,if you decide to sell a year down the line and buy new, if you dont have the 20% deposit on the new house, you pay LMI again on the renegotiated mortgage, what a rip off Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted December 15, 2014 Report Share Posted December 15, 2014 @Druid if you're not moving house but after two years want to renegotiate elsewhere for a better rate mortgage like what an independent advisor would find for you in England then do you still have to pay anything else extra. Quote Link to comment Share on other sites More sharing options...
Druid Posted December 15, 2014 Report Share Posted December 15, 2014 @Druid if you're not moving house but after two years want to renegotiate elsewhere for a better rate mortgage like what an independent advisor would find for you in England then do you still have to pay anything else extra. The way I understood the conversation with the ANZ mortgage advisor is if you renegotiate the mortgage in any way and dont have 20% minimum equity or available funds then yes, you are paying LMI again, if I understood correctly, the LMI we now have in place on our current mortgage is only good for that mortgage contract, a renegotiation means a new contract. one of our neighbours building next to us was told by his broker that the only way he could avoid paying LMI was to sell his house in Heathridge, put the equity in the bank, which exceeded his 20% deposit on the new build and then go rent for the period of the build, this is what he elected to do, they would not even take the equity in his current house into consideration and offer a bridging mortgage like you would expect to get in the UK! Another way to avoid it is to get a guarantor, this is what the younger genration do, get bank of mom & dad to put there house on the line Quote Link to comment Share on other sites More sharing options...
Druid Posted December 15, 2014 Report Share Posted December 15, 2014 Another thing to consider, the more you load the mortgage with MLI stamp duty etc, not sure you can load stamp duty onto your mortgage, the broker I spoke to said we needed $xxxxx in the bank in available funds for the deposit & stamp duty, the more your deposit goes up, the bank want a minimum of 5%, they work on some equation, we only had 5% initially, but then had to pay more for after the MLI was loaded, then the MLI went up because the mortage went up, you cant win, you just get toatlly screwed wif you dont habe the 20% deposit Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted December 15, 2014 Report Share Posted December 15, 2014 A lot harder than getting on the ladder than the uk then. Also as mentioned previously if you're having a house built you have to pay some of that early doors as well as paying on your rental. Quote Link to comment Share on other sites More sharing options...
Druid Posted December 15, 2014 Report Share Posted December 15, 2014 A lot harder than getting on the ladder than the uk then. Also as mentioned previously if you're having a house built you have to pay some of that early doors as well as paying on your rental. Building is easy, you pay for the land in full after it has been titled, this is called settlement, then a month kater you start paying an interest only mortgage, , then if you have negotiated a house and land package with your builder then your mortgage will all be rolled into one, your builder gets paid stage payments from the bank, the first one is slab down, the second one is bricks done, the third one is roof on etc, its all interest only. If you have bought land but havnt decided on a builder, then its a two pronged approach, you can only negotiate a mortgage on the land, you cannot negotiate a mortgage on the build as you dont have a building contract, once you have a building contact you can go back to the bank and sort the mortgage out for that, you can get a buy ready agreement of the bank in principle, so its not a worry that you are buying the land but may not get a mortgage to buold on it Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted December 15, 2014 Report Share Posted December 15, 2014 The way it's been described in the past on here is that you and me would pay for the slab down and the various other stages whilst still paying your weekly rental. Anyone bit far down the line for us I'll be sure to look into it more if we like living there. Quote Link to comment Share on other sites More sharing options...
Arwen Posted December 15, 2014 Report Share Posted December 15, 2014 You if you can pay the LMI up front so not to add to your monthly mortgage repayment also be aware that capital gains is payable on property over $430k that will also add to monthly mortgage payment if you cant pay it upfront What is this capital gains you talk about on purchasing a property? It's not something I have heard of before. Quote Link to comment Share on other sites More sharing options...
Bibbs Posted December 16, 2014 Report Share Posted December 16, 2014 (edited) The way I understood the conversation with the ANZ mortgage advisor is if you renegotiate the mortgage in any way and dont have 20% minimum equity or available funds then yes, you are paying LMI again, if I understood correctly, the LMI we now have in place on our current mortgage is only good for that mortgage contract, a renegotiation means a new contract. I've just got a new mortgage on my old house (through divorce). I no longer had the 20% so had to pay a small amount of LMI. LMI is on ANY loan where you don't have the 20%. Also it add. If you are a contractor, you'll need 12 months of invoicing. A 4x2 within 10 km of the city would be about $500k. More if you want a nice area/transport links, less if it's a bad neighborhood or a Unit. APR is under 5% at the moment, and the banks are calling for drops next year. Edited December 16, 2014 by Bibbs Quote Link to comment Share on other sites More sharing options...
elfie Posted December 16, 2014 Report Share Posted December 16, 2014 What is this capital gains you talk about on purchasing a property? It's not something I have heard of before. When we went to enquire about a mortgage at NAB we were told about the mortgage ect deposit - 20 % the insurance if you didn't have deposit required if not also capital gains on property over 430k this is then based on the amount over the 430k first time buyers grant for a house already built 3k if building 10k. Both the capital gains plus the insurance can be added to mortgage. But you can pay the insurance upfront with 5% deposit...cant really add any more than that except you should be informed of this when enquiring. We basically asked for the Idiots Guide to mortgage requirements in Australia Quote Link to comment Share on other sites More sharing options...
Arwen Posted December 16, 2014 Report Share Posted December 16, 2014 When we went to enquire about a mortgage at NAB we were told about the mortgage ect deposit - 20 % the insurance if you didn't have deposit required if not also capital gains on property over 430k this is then based on the amount over the 430k first time buyers grant for a house already built 3k if building 10k. Both the capital gains plus the insurance can be added to mortgage. But you can pay the insurance upfront with 5% deposit...cant really add any more than that except you should be informed of this when enquiring.We basically asked for the Idiots Guide to mortgage requirements in Australia �� They mean stamp duty not capital gains. Stupid NAB. Quote Link to comment Share on other sites More sharing options...
Druid Posted December 16, 2014 Report Share Posted December 16, 2014 The way it's been described in the past on here is that you and me would pay for the slab down and the various other stages whilst still paying your weekly rental. Anyone bit far down the line for us I'll be sure to look into it more if we like living there. Yes, you have to pay your mortgage on the build and pay rent, fortunately the mortgage is interest only so that helps, the whole building process takes 9-12 months, so dig in for the long haul, your mortgage ramps up every six weeks or so as the stage payments go through, you are also liable for rates on the land and the water & electricity the builder uses Quote Link to comment Share on other sites More sharing options...
Guest Guest6235 Posted December 16, 2014 Report Share Posted December 16, 2014 Thats unbelievable, the builder could go mad with water Quote Link to comment Share on other sites More sharing options...
elfie Posted December 16, 2014 Report Share Posted December 16, 2014 They mean stamp duty not capital gains. Stupid NAB. lol thats what it is then cheers i was a bit puzzled - always thought capital gains was for when you sell/inherit ect ... she did say capital gains though im sure or was i having a blonde day hmmmm going to ask john when he rings tonight lololol Quote Link to comment Share on other sites More sharing options...
Lou8670 Posted December 17, 2014 Report Share Posted December 17, 2014 lol thats what it is then cheers i was a bit puzzled - always thought capital gains was for when you sell/inherit ect ... she did say capital gains though im sure or was i having a blonde day hmmmm going to ask john when he rings tonight lololol Defo stamp duty not capital gains....you can also get a mortgage as soon as you arrive and are in employment if you already have accounts with an international bank and stick with them; the 3 or 6 months only applies if you open a new account with a new bank as they will want to see your spending history before approving a mortgage. Quote Link to comment Share on other sites More sharing options...
Bibbs Posted December 17, 2014 Report Share Posted December 17, 2014 A few years back it was :- first time buyers pay no stamp duty (or something like that). But reading the fine print, it was only no duty if the house was under $500k, and then a sliding scale to 0% discount at $600k. So if you bought over $600k, you got nothing. Quote Link to comment Share on other sites More sharing options...
Lou8670 Posted December 17, 2014 Report Share Posted December 17, 2014 A few years back it was :- first time buyers pay no stamp duty (or something like that). But reading the fine print, it was only no duty if the house was under $500k, and then a sliding scale to 0% discount at $600k. So if you bought over $600k, you got nothing. Now it's got to be less than $430k for first time buyers to avoid stamp duty Quote Link to comment Share on other sites More sharing options...
Bibbs Posted December 18, 2014 Report Share Posted December 18, 2014 Now it's got to be less than $430k for first time buyers to avoid stamp duty Are there any houses that are under $430k? Quote Link to comment Share on other sites More sharing options...
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