If you are not a first home buyer or live in a state like Victoria or South Australia where government stamp duty amounts to 4-5%, then just having the 5% deposit that some banks require is not going to be enough to get you into your next property. For example, if you are purchasing a property in Victoria for $400,000 as a first home buyer and have saved $20,000 as your 5% deposit, the figures look like this; 5% deposit: $20,000 Stamp duty: $14,307 Misc costs for legals etc: $2000 Total funds required: $36,307 Less First Home Owners Grant: -$7,000 Total own cash required: $29,307 If you have saved up the $20,000 then you are still some $9,000 short on being able to buy your first home in victoria. This article briefly explains a couple of options for this scenario. Option 1: $20,000 Extra on Settlement MAP has options where lenders will provide/fund an extra $20,000 on settlement to assist… Read More
Archives for August 2011
Permanent Residents are treated by some banks and lenders as foreign citizens which invokes stricter lending policy than is otherwise applied to Australian citizens. There are however a handful of banks and lenders that will treat PR visa holders like Australian citizens and thereby provide home loans under normal lending criteria. Below is an example of the policies applied to Australian Permanent Residents. Permanent Resident living and working in Australia: PR visa holders buying a home in Australia can obtain a home loan with just 5% deposit. The 5% deposit can be genuine or non genuine savings so there is no requirement to have saved up the deposit but can rather come from a gift, sale of an asset, First Home Owners Grant or even a personal loan. Permanent Resident buying a home with someone who does not hold PR: If the permanent resident is purchasing with an borrower that does not hold PR, then a home loan is still… Read More
NZ Citizens living and working NZ can arrange home loans in Australia for Australian property up to 95% LVR. That is, if you are looking to buy a property in Australia but are working in NZ, you can get a home loan with just a 5% deposit plus costs. If you are a NZ citizen living in Australia then you can get a home loan to 95% as well so only a 5% deposit is required. If you have a guarantor, you could get up to 105% home loan. If you are a first home buyer in Australia then you would qualify for the first home owners grant and if you are building something brand new, then there is a $10,000 grant on offer until the end of 2011 from the QLD government to kick start the building industry. More information on NZ Citizen Home Loans here.
Temporary residents in Australia on 457 visas are, as of today, able to borrow up to 90% LVR with only a 10% deposit plus costs. After the withdrawal of this product during the GFC, it is now back in full force. Providing the 457 visa holder has 12 months in current job and has saved up a good portion of the deposit, then it is very likely they will qualify for a 90% 457 visa mortgage. Foreign citizens without permanent residency (‘PR’) have to date required a 20% deposit unless purchasing with an Australia citizen or permanent resident. This is a great step forward recognising that there are many professional temporary residents out there who can easily afford the repayments on a mortgage but do not quite have the required 10% deposit. More information on 457 visa home loans here.