There is always debate about whether lenders mortgage insurance is a good or bad thing. Naturally, no one likes to pay fees especially when they amount to many thousands of dollars. But it needs to be remembered that for many people, accumulating a 20% deposit to purchase a property while renting and in a rising market, is very difficult and without mortgage insurance the dream of home ownership would be a distant reality for many. I have done the figures many times for Australian Expats and Temporary Residents seeking a home loan in Australia and compared a person who rents for an extra 3-4 years to save up that 20% deposit compared to the person that buys now without the 20% deposit. The amount of rent (which is dead money) one would have paid just in 6 months would easily cover the mortgage insurance that would have been incurred on purchase. If the property market is rising then you would have also gained some equity in your property rather… Read More
Archives for May 2010
RBA raises interest rates by 0.25%
The RBA decided to raise the official cash rate by 0.25% taking the official cash rate to 4.5%. Subscribe to our interest rate newsletter and receive monthly updates on what is happening in Australia
6 Common Mistakes Expats make when they go directly to the Bank
1 The bank/s you contact directly do not cater for expat home loans: Credit policy amongst the lenders varies substantially with some banks requiring as much as a 40% deposit. If you go directly to the banks not only are you spending your time in doing the research that MAP would do for free, the outcome is you may have to provide more funds upfront for your home loan than would normally be necessary. 2 The broker you contact is inexperienced and does not understand expat home loan policy and the practical issues surrounding buying a home when living overseas. Simple things like identification whilst living overseas and the witnessing of mortgage documentation when living in a foreign country. The result of using an inexperienced broker is either having your loan declined, delayed, having to input more funds to complete or a combination of all of the above. 3 Application is submitted to a lender where lender policy reduces income used to determine borrowing… Read More
