Facts about mortgages for Aussie expats

Banks in Australia lend up to 100% of the Australian property value to Aussie expats on normal terms. "Normal terms" means that expats can have the same conditions as locals. Acceptable loan purposes include:

• To purchase an investment or owner occupied property in Australia

• To refinance or consolidate debts in Australia or overseas

• To take equity out of Australian property for personal or business use overseas

Loan amounts

The maximum loan amounts depending on the percentage of the property value are:

• Mortgages up to 100%, max amount $750,000

• Mortgages up to 95%, max amount $1,000,000

• Mortgages up to 80% - no maximum amount

Interest rates

Current interest rates from our panel lenders as at 03.03.2007

• Ongoing variable 8.25-8.35%

• 1-3 year fixed 8.44-8.59%

• 4-5 year fixed 8.55-8.69%

• 5-15 year fixed 8.65%

• Negotiated variable 8.12-8.25% (for loans above $800,000)

• 1-year special 8.09%, reverts to 8.48%

We provide comparison rates at the application stage.

Mortgages in foreign currencies

Mortgages in the following currencies are also available (investment property only):

• EUR - 5.89%

• USD - 4.51%

• SGD - 3.06%

• HKD - 3.86%

• GBP - 7.16%

• NZD - 10.40%

Loan features

Features that come with the expat mortgages:

• Transaction offset account with ATM card for all your banking needs in Australia

• Telephone and internet banking

• Optional credit card

• Redraw, unlimited extra repayments and flexibility of early repayment

• Flexible loan terms of 1-30 years

The process: requirements, timeframes and costs

Arranging a mortgage takes about 30 days plus 15 days for the loan & mortgage documents to be couriered overseas for you to be executed and back. A pre-approval can be obtained within 1-2 days. The entire process is completed via email, phone and fax. We generally do not charge a brokerage for arranging mortgages as banks pay us a commission. We disclose commissions and loan parameters on a finance broker agreement at the time of application.

The property purchase costs (stamp duty, legal fees, etc.) in Australia can be roughly estimated as 4-6% of the purchase price depending on the state (VIC, NSW, etc.) and property type/size. This excludes the mortgage insurance applicable in some cases, ranging from  1-3% of the loan amount as a once off expense.

Click here to view what documents are required to support a loan application. This is only a guide. If you do not have all of the documents, we can discuss alternatives an/or arrange a low documentation loan for you.

Extras

Here at Proper Finance Solutions, we can look after your entire property buying process. This includes appointing and coordinating the parties involved with your purchase such as solicitor, building & pest inspectors, property insurer, property manager and, of course, the lender. This way, all you need to do is to secure the property and we take care of the rest. Click here to download a brochure about this popular added value service.

Where to start

Please feel free to call Anton’s direct line +613 9909 7495 between 9 AM and 5 PM Australian Eastern Standard Time to discuss your requirements, options available and the process in general. If you are unable to call us during the office hours due to the time difference, you can send us a quick enquiry below to schedule an after hours conversation.