What is the FHLDS Scheme? Usually first home buyers are required to have saved up a 20% deposit or take out lenders mortgage insurance (LMI). The FHLDS scheme is a new scheme guaranteeing 10,000 low deposit home loans with the borrowers only requiring as little as a 5% deposit and without paying lenders mortgage insurance. This could save first home buyers $10,000- to $40,000 depending on deposit size, loan amounts etc. Are there any spots left? When the First Home Loan Deposit Scheme (FHLDS) released 10,000 spots – 5,000 were released to the NAB and CBA. These 5,000 spots filled up almost immediately. The remaining 5,000 spaces were released to 25 ‘non-major lenders.’ Whilst the NAB and CBA no longer have any available spots, there are still spots available with these 25 non-major lenders. Same opportunity, better rates and packages are on offer… in fact there is no negative except the name of the lender. What are the Conditions? The… Read More
The introduction of new legislation by the Australian Federal Government saw the Australian based banks and lenders withdraw their foreign currency home loan products from sale end of June 2010. MAP can still assist and has formed a relationship with an overseas lender to assist Australian Expats living and working abroad to borrow in the currency that they earn their income in. Maximum LVR is 70% and the currency you can borrow in is either AUD, the currency you earn in or a currency that is pegged to your currency. Eg, an Australian earning in AED can borrow in USD or AUD. More information on Foreign Currency Home Loans here.
MAP can now assist with Car and Personal loans for Temporary Residents here on working visas such as a 457 visa, or spouse visas. Note that the criteria is very strict though, more information on Personal and Car Loans for Temporary Residents here
Article outlining the difficulties that Australian Expats face when organising a home loan from overseas. Read More
Commonwealth Bank and St George today announced an increase to their 3 year fixed rate to around 7.29% before any discounts. This increase comes 3 weeks after they followed other lenders in reducing their fixed rates down to levels that have not been seen for quite some time. Deciding whether to fix in or stay on variable is always a difficult question. No one knows what is going to happen with interest rates. Main advantage of fixed is that you have certainty of repayment so if one or two rate rises is going to totally blow your budget then perhaps it is time to fix in. Information on Temporary Resident Home Loans here and Australian Expat Home Loans here.
In a sign that perhaps interest rates may be on hold for a little while, some of the major banks are offering fixed rates for 3 years from 6.99%. It as only 3 months ago that the 3 year fixed rate was up around the 8% mark so 6.99% is a very sharp rate. Temporary Residents and Australian Expats should consider carefully whether to fix in or not. If your budget is tight and perhaps another few rate rises would see you start to struggle with repayments, then fixing the rate in may be a good idea. If however you have plenty of surplus income and like paying more off your home loan, then variable is probably the better option. The main advantage of fixed is the certainty of payment – the main disadvantage is as, many discover recently, you could end up stuck on a higher rate if the variable rate reduces.
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
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
At its meeting today the Reserve Bank left interest rates alone choosing to wait and see what the effect the 3 rises in October, November and December have had on the economy. The decision to leave rates on hold came as a surprise to economists with some 80% of economists prediction rates to rise by 25 basis points. Cash rate remains unchanged at 3.75%.
FHOGS& STATE SUBSIDYSUMMARY NEW SOUTH WALES Contract Date Transaction Type First Home Owner Grant Federal Grant $ First Home Owner Boost Payment Federal Grant $ NSW New Home Buyers Supplement State Subsidy $ Maximumamount $ 01/01/10to 30/06/10 Established home 7,000*** 0 0 7,000 New Constructed home 7,000*** 0 3,000 10,000 ***Customers entering into a contract inside the above specified dates will be restricted to a capped property value of $750,000 VICTORIA Contract Date Transaction Type First Home Owner Grant Federal Grant $ First Home Owner Boost PaymentFederal Grant $ First Home Bonus State Subsidy $ First Home Owner Regional Bonus State Subsidy $ Maximumamount $ 01/01/10to30/06/10 Establishedhome 7,000*** 0 2,000** 0 9,000 Newlyconstructedhome in MetroVictoria 7,000*** 0 11,000** 0 18,000 Newlyconstructedhomei n RegionalVictoria 7,000*** 0 11,000** 4,500 22,500 *Value ofpropertymustnot exceed$500,000 **Value ofpropertymustnotexceed $600,000. ***Customers entering into a contract inside the above specified dates will be restricted to a… Read More