Home Loan Rate – Australia

Hard financial times often require smart solutions to problems that can be easily solved.  You may have taken a loan, and have defaulted on them because of your financial situation.  Possibly you could have lost your job, or have been disabled and unable to work, or may have lost a great deal of money in your business.  If you find it impossible to keep up with your repayments, because of your current situation, or see refinancing as a possible strategy to save some money then you should seriously think about refinancing your existing low doc loan.

Interest rates continually fluctuate and change.  Sometimes they are high, and at other times they are low.  This is exactly what may happen for low doc loans.  At the right time, and with the right circumstances one could possibly benefit from refinancing a low doc loan to achieve some savings due to lower interest rates.

The main factor in refinancing is choosing the bank or lender who should handle your balance transfer and refinancing.  This may be a difficult choice as there is an endless array of loan products and packages that can be developed.  However, with some advice from home loan experts, it would be possible to custom fit your refinancing to get the best savings on interest possible, or a mix of flexibility and lower interest rates.  This means it is very likely for you to get a good deal on low doc loan refinancing.

Did you think that a home loan at 100% is no longer possible?  Well we would like to show you that it is still possible with a little help.

The usual percentage that home loans are granted often reach up to only 80% of the total property value.  Why do you think it is set up to a certain point?  This is because banks and lenders are trying to reduce their risks by not lending out too much to one particular person.  However, there is still a way to get a 100% home loan.  This is with the help of a guarantor.  The guarantor will assure the bank or lender that a borrower will be able to pay.  The guarantor then offers something as security.  The security may be in the form of cash, stocks, property or any other security deemed to be acceptable by the bank.

Often guarantors are family members, most common of whom are parents who would like to help out their children purchase their first home, or they can also be close relatives who wouldn’t mind helping their blood relations get a place of their own.

With the help of these guarantors a 100% home loan is now possible.  In addition it is also a nice way of avoiding payment of Lenders Mortgage Insurance (LMI) which is required for loans of 80% or more of the value of the entire property.  These guarantees can also help avoid the unreasonable at interest rates for all loans above 80%.

These multiple benefits plus the fact that you are able to get a larger loan should encourage family members to help one another get a 100% family guarantee.  The entire family unit can save a lot by avoiding high interest rates and unnecessary premium payments.

The home loan experts will help and show you the best way to capitalise on the use of a family guarantee.  They have access to the banks and lenders who will most likely be willing to grant these types and forms of loans.

Taxes can become costly and they continue to pile up every day.  This is why people try to come up with ways to avoid paying taxes legally everyday.  One way is by letting your employer directly pay your mortgage for you.  Where your employer allows you to salary sacrifice by doing this, you are going to pay less taxes as your gross income is going to be lower.  This is because the money that you ask your employer to directly pay to your mortgage repayments will no longer be considered as part of your income.

However there can be a problem with this, as although you will be paying less taxes, your employer will still be required to pay fringe benefits tax, unless your employer is considered to be an exempt body.  For this reason it may be difficult for you to convince your employer to allow you to salary sacrifice when they will end up spending more.

This should not be the case if your employer is an exempt entity as they do not need to pay the taxes on your fringe benefits.

There are also other ways to use this as a tax shield.  One way is through superannuation.  This means that your salary is reduced by the amount you would like, and it is instead paid to the superfund in anticipation of your retirement.  This effectively reduces your gross income by the amount that you put into the superfund, and assures you of a little more to spend when you retire.

Another way to use this salary sacrifice is to ask for a certain benefit instead of asking for cash.  Due to this fact it is possible to ask for a car to drive, or a computer to use, or various other items you would like to purchase on a regular basis in exchange for a lower gross salary.  However, employers are careful about these types of salary sacrifice as they may be made liable for additional taxes that could cost them more in the long run.

Those with expertise in home loans can show you the correct steps to be taken in order to use this as a salary sacrifice mortgage in order to help you better afford your home.  They can show you the best way to convince your employer to make the home loan repayments and come up with a win-win situation for both parties.

The 457 VISA is the easiest means by which Australia can have access to skilled workers.  These workers are authorized to live in Australia for at least three months to a maximum of four years.  This makes job hunting and living in Australia much easier for foreigners who live and work temporarily in the country.

The question often asked is can 457 visa holders purchase a home in Australia?  Another common question is if these visa holders can likewise apply for a home loan in Australia?  Fortunately the answers to both questions are a resounding yes!

Of course the number one requirement is that FIRB approval is required unless you are exempt.  You will also be required to make a deposit of at least 20%.  These requirements are not hard to fulfil thus, being a foreigner is not at all a hindrance to acquiring a home or getting a home loan.

Some may be even entitled to the FHOG or first home owners grant.  Holders of the 457 visa can loan is up to 80% of the property’s value.  The amounts that the lenders will be willing to loan may vary depending on the amount of time you have already spent in Australia, the stability of your employment, and proof of capacity to pay.  Those who have just come in and started working in Australia may apply for a loan straight away, but they should not expect good rates, as banks and lenders may see these applicants as too much of a risk.

The home loan experts would be happy to assist in your search for the perfect place to live in Australia.  They possess the expertise required in order for the holders of these visas to get a 457 visa mortgage, and enable them to make the most of their stay in Australia and get a property that is worthwhile to live in and invest in.

Investing in a foreign country is always risky.  The business and mortgage practices are different, and you are not familiar with how stable that country is.  For ‘would be’ investors in Australia there are a host of possible opportunities for purchasing real estate that can really earn you back your investment and make you some profits.

This means that you may require our help in deciding which property should be a worthwhile purchase. With so many options available it can become very confusing. What is even more confusing is the range and variety of lenders who may try to take advantage of the limited knowledge as a new investor in a foreign land. This can be avoided by working with us as we have contacts with many trusted banks and lenders that we can tailor fit a 90% home loan for you.

Due to the fact that it is a 90% home loan the investor would of course be required to deposit a certain amount in order to have your home loan approved.  Without the deposit you will generally not be allowed to get a loan.  However, in some exceptional circumstances where other property is likewise mortgaged, there is a good chance that you will be able to get a good deal on the loan.

The nice thing about the 90% loan is that you need not have genuine savings available to apply for it and get approved.  A gift from a relative will do in order to do away with the requirement of genuine savings.  You may need a gift letter to encourage the banks to approve the loan, but this is a generally accepted practice.

Some would like the possibility of getting a 100% home loan, and this is very possible only if some other person is willing to act as guarantor of the person applying for the loan.  With the help of a guarantor, finally deciding on the 90% home loan would be much easier.

Running a business is very unpredictable with its highs, lows & unique challenges.   Every good businessman knows that sales cannot be up all the time, and that while you may be down and out now, a possible opportunity for solid profits can be just around the corner.

There are times that it is very difficult for those who are running their own business to get a home loan.  The income earned may vary, and because of this, banks and lenders see these contractors as too high a risk, unless they can provide the requisite documentation and proof of regular income.

When compared with those who are regular PAYG earners, these contractors will have a hard time getting a variety of loans.  In fact, PAYG earners often have more loan choices than ever, while those who have their own businesses can rely only on a few types of loans that are usually low doc loans that require minimal documents but have high interest rates.

This is an interesting situation considering that many self employed contractors working in either the Mining or IT industries. Both of these industries are renowned for their constant labour shortages! Is there really a risk to a bank that you will be out of work? The real problem is that because you invoice your employer and don’t have any “guarantees”, you simply don’t qualify for the requirements that the banks look for.

However this does not mean that contractors who are self-employed cannot possibly get a loan.  Some banks will offer low doc loans to self employed contractors & freelancers. In addition to this some specific lenders can offer a contractor mortgage, on a full doc basis, based on your current contract, recent invoices and history of employment.

There may be times when income will be at an all time low, and there may be times where your business will be turning in a windfall of profits.  Through the good and bad times the Home Loan Experts can advise you on what possible types of loans can be made available to you.  They can likewise help in getting you the best loan possible for your needs.

Enquire now and get a self employed contractor home loan from specialist mortgage brokers The Home Loan Experts.

There are a lot of instances when purchasing property in Australia has its benefits.  This is true whether you are a foreigner or an Australian citizen.  Investing in property and real estate and Australia is often low risk as value of property is constantly on the rise.

However certain steps must be taken before a loan can be made.  First and foremost Foreign Investment Regulatory Board (FIRB) approval is often necessary unless you fall under the exceptions.  There are several exceptions.

First and foremost an Australian citizen living approval does not need FIRB approval.  Where your spouse is Australian, and you are purchasing a house to live in as joint tenants you likewise need not ask for FIRB approval.  Residents of New Zealand are likewise exempt, and if you hold a permanent resident visa you need not seek any approval.

Temporary residents on the other hand are exempt when purchasing single blocks of vacant land, or new dwellings.  Purchasing a second hand dwelling to live in is also exempt, or even purchasing new dwelling as long as they are pre approved to be sold to foreign citizens.

If you fall within these exemptions, that is one less process to worry about.

Whether or not you need FIRB approval is one thing, while another item for those trying to get a loan is how much of a loan they can get.  Australian citizens living abroad can generally get up to 95% LVR with LMI.  This is the same maximum for those with foreign spouses either working abroad or working in Australia.  Temporary residents working in Australia on the other hand can get up to 85% LVR, while foreign nationals who live and work abroad can get up to 80% of the total property value.

Investing and buying real estate is a genuine opportunity to make a wise investment.  As long as all the requirements such as FIRB approval and the necessary documents are submitted, it shouldn’t be hard at all for a foreigner to get a loan to purchase the property they would like in Australia.

Lenders Mortgage Insurance or LMI is often a must once the loan to value ratio (LVR) of the property is 80% and up.  However there are a number of loans that can go over 85% LVR but will not require you to pay LMI.  These types of loans can save you a lot of money, as you need not to worry about LMI premiums.  There are only certain fees to pay in exchange for the fact that there is no LMI being charged to you.

Another tested way to avoid LMI altogether is to either make a sizeable deposit with the bank.  This usually amounts to 20% of the total value of the property.  You can also avoid going above 80% LVR to keep banks from charging you LMI.  These are two tried and tested ways of avoiding additional LMI costs and paying no LMI whatsoever.

This means that if you would like to get into the real estate market much earlier, yet do not have any funds to make a deposit, or would really like to get a loan of 80% or more of the property’s total value, then expect to be required to pay LMI as most banks and lenders will charge you LMI premiums.

The experts on home loans have access to those banks and lenders who are willing to go over 80% and yet do charge no LMI whatsoever.  However, be warned that interest rates and additional fees may be applied, so the costs may actually be the same as paying LMI.  This means it would be best to make use of a mortgage insurance calculator before getting a loan with no LMI.  For all you know, it could cost much less than getting a loan without LMI in the first place.

If you do need to apply for a loan where mortgage insurance will be applicable then you will be subject to additional credit criteria. As a general rule you may need to:

• Have 5% in genuine savings.
• Have a clear credit history.
• Have stable long term employment.
• The property must be in good condition in a major area (capital city / regional centre).
• Pass a credit scoring algorithm.

If you are applying for a mortgage over 80% of the property value then discuss your situation with a qualified mortgage broker to find out where you stand. Putting in several applications with different banks will lower your credit score for future applications. The best strategy is to go for one application, and one approval.