Home Loan Rate – Australia

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.

To fix or not to fix your loan is a common question.  Another common question is for how long you should fix your loan rate. This can last from a few years to several years.  Deciding on whether or not to fix is also essential as this can have great impact on the interest rate you will be paying and your total expenses.

Fixing the rate of your loan is a good idea, especially if rates are on the rise, and are becoming unaffordable.  This is especially true if the trends show that there is little chance of the rates going down once again.  Another good time to fix rates is when the rates are at an all time low.  With rates set so low, paying that rate of interest for many years will ultimately save you a lot of money in the end.

The common length of time that rates are fixed is usually for a 3 year period.  However, this can be fixed for a longer or shorter period depending on the financial environment.  After the period lapses, the loan is usually transformed into a standard, variable rate loan.

For others who are unsure whether or not the interest rate is at a good level, in order to get the best of both worlds, a portion of the loan will be fixed, while another portion will be variable and will move up or down depending on the prevailing interests that banks and lenders charge.

The home loan experts have the expertise in dealing with such situations.  They can help you decide on whether or not a fixed rate loan would be suitable to your needs.  They can also give you different options for your home loan.  They could suggest different types of loans, or suggest how long you should fix your loan for.  They will ensure that you get a good deal especially on a 3 year fixed rate home loan

Hi there, I finally started work at my new job.  I’ve lived with my parents for the longest time, but now I want a place of my own.  Is it possible for me to get a loan?

Yes, it possible.  Generally banks and lenders would like you to have spent at least half a year at a job before they decide to grant you a loan.  This is expected because banks calculate risk, and it is more risky for them to be granting loans to people who have not spent too much time at their jobs.  This is because there is a high possibility of not keeping their jobs, and ending up not making the loan repayments.  When you are unable to make repayments then the banks will lose money, and then have to look for ways and means to recoup their losses.

However, if you desperately want a new home, and cannot wait for six months, or twelve months in order to get a loan, there is still a way of getting a home loan.  The trick is to find the right lender.  There are lenders out there who look at those holders of a new job differently.  In fact, there are some lenders who are willing to grant a loan even if you have spent just one day on the job.  Others may require a shorter period of one month or three months, at least you do not need to wait for the full six months.

The home loan experts have access to these lenders who are open to granting loans to new job holders.  They understand the situation of those who have just started working, and their need for access to quality loans.  With their help, it is highly likely that you will be able to get a home loan, even if you have just started a new job.

There is no question about it, banks and lenders often require genuine savings in order to qualify for a loan.  However, this is not always the case.  Loans without genuine savings are possible, and can be made as long as you are in the right situation.  

You can be the proud recipient of a gift, or be the beneficiary in an estate proceeding where you are made an heir to a large amount of cash, or you made a windfall in the stock market by playing it smart.  All of the above mentioned items are not genuine savings but are viable deposit substitutes.  All that genuine savings does is make it less risky for the banks when they give out and approve a loan.  However, it is still not a guarantee that the repayments will be paid.  The same thing goes for no genuine savings, the banks and lenders may be taking more risks, but it does not immediately mean that the person with no savings will not be able to make the repayments.

Thus, all a person has to do is to prove that they have enough money to make a certain deposit amount, and that it does not have to be genuine.  The only difference is that the money is not kept in the bank for 3 to 6 months, which is usually the main indication whether a certain amount is genuine or not.

This means if you are in such a situation where you have enough money to make a deposit, but the only problem is that it is not genuine and you are fortunate to have such an amount on hand, then you can consult us, the home loan experts.  We can provide you with the necessary information on no genuine savings loans, and how to maximize their use.  Enquire online now for free!

There is no doubt that property prices of Australian real estate are constantly on the rise.  Due to this fact, it is becoming harder and harder for investors and first home buyers to make the initial deposits, or get a loan in the first place. What makes it more difficult is that often the market values of properties often rise rapidly, faster than the income you make and the savings you put in your bank account.
Several banks and lenders recognise this continuous problem, and have tried a number of ways to remedy and fix the existing problem.

One of the solutions to get around the deposit that you require is through a family guarantee. The basic idea of a family guarantee is that it will allow you to purchase a home without the need for your own savings as a deposit. With a family guarantee, the existing equity in the guarantor’s home can be used to add as funds for the loan.

A family guarantee however requires that the family member making the guarantee has adequate assets of their own. This means that a family guarantee may not be as effective if the family member acting as the guarantor has low assets of their own, or does not have a good credit score.

With a family guarantee, you are able to apply for many loan types. The loan can have a fixed or variable rate, it can be a no doc or low doc loan, capped rate loans, and many more.

So what are you waiting for? Why loan just 90% when you can loan up to 100% of the property’s value with a guarantee home loan.