To the average consumer, the governments proposal to ban mortgage exit fees sounds like a great idea. There is no doubt that it will be popular amongst the general public who would naturally think that its a great move in the pursuit of increased competition and therefore cheaper interest rates. It is this authors submission however that removing exit fees will actually decrease competition, increase interest rates and eventually lead to the demise of the smaller non bank lenders like credit unions and building societies. It is further submitted that the move by the current government does not address the real barrier to a refinance which is the non transportability of lenders mortgage insurance, an issue discussed in previous article here. What are mortgage exit fees? Mortgage exit fees (or deferred establishment fees or DEF’s for short) are fees charged by lenders to a consumer when the consumer exits their mortgage, either by sale or refinance, within a given period of… Read More
Archives for February 2011
Non Permanent Resident Visa Home Loan: Can I get a Home Loan without PR?
Many banks and lenders will simply refuse to lend to applicants that do not hold a permanent resident visa or Australian citizenship. For many lenders it is simply too risky to lend to an applicant without permanent residency as most are worried about what happens if the temporary resident visa is not extended. Is a home loan in Australia possible if I do not hold permanent residency PR? Yes! Whilst many lenders will not lend to you there are a good number that will at normal standard interest rates. Thats right, you will not be paying more because you do not hold permanent residency. The key to getting approved is simply applying with the right bank and that is where MAP can help. How much deposit will I require? As a generaly rule, applicants for home loans that do not have a permanent resident visa will require a 20% deposit. There is an exception to this if the applicant without… Read More
