How much can you borrow with Australian mortgages?

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How much can you borrow with Australian mortgages?


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Old 05-06-2013, 08:47 PM
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How much can you borrow with Australian mortgages?

Hi Everyone,

My wife and I have secured a state sponsored residency visa for Victoria and plan to move within the next year. Between now and then we aim to raise as much money as we can for a deposit to buy a house as soon as we can after arriving. I've been trying to work out which suburbs of Melbourne we will be able to afford by doing some research into how much we would be able to borrow on a mortgage once there. The trouble is every site I visit seems to give me considerably different results. Could anyone offer any advice? We would hopefully be earning a combined salary of about $120,000 and have had results anywhere between $360,000 to $800,000 mortgages.

Thanks for your help :-)


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Old 05-06-2013, 10:26 PM
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Hi There,

Best advice I can offer is as soon as you arrive you should see a mortgage specialist at one of the banks. This is the only way you can get the correct figure you would be able to lend.

Please be aware though that property buying in Australia is very different to anywhere else in the world and believe me it is not a quick nor fun process.

My wife and I have been on the market (with an approved mortgage) since Jan this year and we see about 5 house inspections a weekend. They open for 30 minutes, there is normally over 20 people inspecting at the same time and almost all properties wont sell before auction.. so its a big gamble...

Anyways, good luck.

RobKarin likes this.

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Old 05-06-2013, 11:14 PM
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Hi

I have done some research on this and it seems the multiple of income is anywhere between 3 and 5 times. It will obviously depend upon your specific situation.

Mark


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Old 05-07-2013, 11:54 AM
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Have you tried one of the calculators on banks' websites? They can give you a good idea how much you are eligible for.

Banks will be able to borrow you up to $750k with the current interest rates. Personally I would advise not to go for more than $350k mortgage as interest rates are only likely to go up now.


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Old 05-09-2013, 04:51 AM
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Hi Rob, it really depends on what you earn individually to be able to compute your net income after tax.


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Old 05-09-2013, 09:22 AM
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Thanks for the advice everyone. We'll have to just wait and see once we settle in and secure jobs I guess.
Really appreciate your responses.


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Old 05-20-2013, 12:02 AM
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Hi RobKarin

It would be great to hear how it all pans out for you as I think a lot of people will be in a similar situation to you.

Regards,


Mark


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Old 05-20-2013, 07:04 AM
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Hi Rob and Karin

There is actually a better and easier way to go about getting a mortgage while you are still living overseas. We have helped a lot of people in similar situations - it does require a bit of a change in your approach to making the move - but one that has served hundreds of families really well. Let me know if you want to know more

Cheers
Troy


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Old 05-22-2013, 01:31 AM
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Housing in Australia is very expensive, you may find you have to spend a lot more than you'd like to get something decent!

Also remember stamp duty on a house might cost you $15,000-$20,000.

Double check this, but I've also been told having a 20% plus deposit removes the need to have mortgage insurance, which can save you a lot of money on your home loan.


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Old 05-22-2013, 07:13 AM
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Quote:
Originally Posted by randomwally View Post
Housing in Australia is very expensive, you may find you have to spend a lot more than you'd like to get something decent!

Also remember stamp duty on a house might cost you $15,000-$20,000.

Double check this, but I've also been told having a 20% plus deposit removes the need to have mortgage insurance, which can save you a lot of money on your home loan.
Hi

A lot of our customers are often quite shocked at the prices of Aussie property (South African customers) for the size they get - but it is all relative and will depend on where in Australia you are looking to buy/move to

If you do not have PR (Permanent Residency) in Australia - then you can not buy second hand property- you can only buy a new property.

If you are newly arrived then the banks will not lend you money for 12-18 months and you have built a credit rating.

What is Lenders Mortgage Insurance? - this is the insurance policy your financier has to take out in case you default on the loan.

If the LVR (Loan Value Ratio) is 80% or less then mortgage lenders insurance is not applicable. Some banks do go to 85% but conditions apply

The amount of insurance you will pay depends on your situation - e.g. $255K borrow on a $300K property (85%LVR) - insurance would be around $1500 - $2200 - because the the LVR and the loan is low

If the loan was for say $950K on a $1mill property (95%) then insurance would then be around $48K-$45K - because of the higher LVR and loan amount.

Stamp duty rates will vary depending on which State you buy in. Generally though if you are building a new house you will only pay stamp duty on the land - but Wally is right - it's not cheap

If you are a non-resident of Australia (i.e. you earn your income in another country) and want to buy an Aussie property it can actually be easier to get finance while still living overseas

Cheers
Troy


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