House deposit

[Smithers]

Hi all, so we have been here 6 months already and are now looking to buy our first Aussie house.

we have got some money in the uk that we need to bring over as a deposit.

does anyone know if there are any complications with this regard tax issues etc in Australia if we transfer money straight to our Australian bank account. Will probably use moneycorp for the actual transfer.

cheers

steve

[Andrew from Vista Financial]

Hi Steve

 

This should not be taken as tax or financial advice as I am not in receipt of your full circumstances however talking in general typically there is not tax to pay on transfers of domestic monies (in certain circumstances there may be, more so if more than $250,000) but I am not aware of any situation where tax has applied on a domestic money transfer.

 

Regards a house deposit, 5% - 10% is the minimum lenders require nowadays (usually 20% for temp residents) with lenders mortgage insurance required for deals in most cases over 80% loan to value (LVR), this can be several thousand, that said there are currently lenders offering the ability to borrow up to 85% (90% in some circumstances) without charging or rebating the lenders mortgage insurance premium.

 

You may have already done your homework and/or spoken to banks/brokers but you should allow around 5% for buying costs and around $2,500 for other costs.

 

I would definitely suggest speaking to a Broker at the moment as lenders are really fighting for business and so there are definitely deals to be had, lots are giving discounts off of their advertised rates by price matching other lenders.

 

Even if it is your own bank that is eventually used the Broker would likely be accredited to use them and fight for a better deal (it typically costs nothing to use a Broker too).

 

HTH

[Smithers]

Thanks Andrew that's good news