Mortgage on temp visa. Help please

[Guest Sannie!]

hi all., sorry if at all i am taking the topic of the line, just wondering can some one throw some light on this- I am here on a temperory visa, all of sudden was interested in buying a house of my own, went to a bank and got a pre approval for just over 200 k (hard to find a worthy property for this value?) now needed some advice on how to go from here.. would be glad to hear some of the personal eperiences and vlauable ideas:biggrin:..

 

thanks

[Andrew from Vista Financial]

hi all., sorry if at all i am taking the topic of the line, just wondering can some one throw some light on this- I am here on a temperory visa, all of sudden was interested in buying a house of my own, went to a bank and got a pre approval for just over 200 k (hard to find a worthy property for this value?) now needed some advice on how to go from here.. would be glad to hear some of the personal eperiences and vlauable ideas:biggrin:..

 

thanks

 

Hi Sannie

 

Can you advise which Bank?

 

Generally you will need to have a deposit of minimum 20% and would have to cover buying costs in addition to this approximately another 5%.

 

You will also need to gain Foreign Investment Review Board (FIRB) permission to buy a property, if it is to be your own home then it really is just a formality.

 

When you put an offer in on a proerty, make sure it is subject to:

 

Finance;

 

FIRB approval; and

 

Building/Pest inspection (we always recommend this on an established property, it could save you thousands in the long run).

 

You will also need to instruct a Conveyancing to deal with the transaction.

 

Not sure if this is the sort of info you were looking for?

 

Regards

 

Andy

[Guest Sannie!]

It was with commonwealth. 20% scares me a bit! i was told I can borrow upto 95% but for that I need to take an insurance cover for the home, that way the lender will be safe when i am unable to pay my mortage at worst situations occur. bascially i have upto 10% in my savings that would be enough is what the banker suggested. besides i donthave any bad credit history i pay them full every fort night (not sure weather the bank went through this or not as i got my approval on the spot and i read in somehwere it takes atleast two or three days to get the credit history done).

[Guest Sannie!]

forgot to say I am likely to get my PR in another couple of months, that way after that i can access my first home buyer grant as well.

[Andrew from Vista Financial]

Hey Sannie

 

So to clarify, if you are looking to buy when a temporary resident then with Commonwealth Bank (CBA) you would need a 20% deposit.

 

If however you are waiting until you are permanent to buy then it is possible to borrow up to 95% which as you say means having to pay lenders mortgage insurance (LMI), this applies to borrowing over 80%.

 

All Banks work differently when it comes to working out the borrowing power for customers, therefore if CBA are looking to lend you $200,000 it may be possible to borrow a higher amount with another Bank/lender.

 

Happy to have a chat with you further about this is you would like.

 

Regards

 

Andy