By Guest Carol from Vista Financial
How long does it take after moving to Oz to secure a mortgage? Short answer: it depends.
I can see the rolling of the eyes from here.
Different banks have different criteria, you need to tick the boxes. However long that takes, that is how long you have to wait.
There are no hard fast rules on how long you ‘should wait’ to buy a house but there are some important things to know.
The process itself is super quick
The actual purchase process here is a lot quicker than in the UK. The never ending chain of teetering disappointment is very rare here. Property is bought and sold within weeks.
Find out how much the banks will lend you, find a suitable house, put an offer down, exchange contracts, settle and move in. From start to finish in Australia you can be putting down an offer on a house today and potentially be moving in 6 weeks later. It can be that quick.
Are you actually ready to buy?
Why do you want to buy? Are you in a rush to buy? Why? Do you know the exact state and suburb you want to live in? Will the kids be accepted into the school there? Are you happy with that school? Is your commute to work a nightmare? Is it a dodgy area?
If you have just arrived, renting is a great way to get to know Australia and trial out living in different places so you know exactly where you want to buy. The last thing you want to do is buy in an area soon after arriving only to realise your dream location is on the other side of the country.
Where to start
Ok, let’s assume you are set on buying as soon as possible. The first step is figuring out what it will cost overall and where is the money coming from.
If you have enough to cover the shortfall between what it costs and what the bank will lend, you are good to go.
If you don’t, then you need a plan on how to change that. Do you need to save more? Or do you need to wait for some circumstance to change so the banks are more favourable towards you (e.g. do you need to complete probation? Does the bank require you to have worked for longer than 6 months?).
If you are a PR or Australian Citizen with 20% deposit (plus costs) then happy days, the banking world welcomes you with open arms.
If not, don’t give up! There are so many different banks and policies out there so you don’t know exactly until you have had a professional unequivocally tell you so AND (most importantly) what you need to do to change that. If you are a temporary resident most banks may only lend you 60 – 70% these days. BUT if you purchase with someone who is PR or a Citizen then it can be a whole different ball game. It all drills down to finding the best fit for you.
One last thing.
Comprehensive Credit Reporting (CCR)- Australia is catching up
If you are coming from the UK you probably already know all about credit scoring and the importance of having a clean bill of financial health. Australia has technically had CCR in place since 2014, but the uptake has been sluggish. This is about to change and may be a rude awakening for a lot of Aussies. From 1 July 2019 all major banks are required to share 100% of their data with credit reporting bodies, so this will become more and more relevant here, as it is in the UK, in the coming years.
As of right now, lenders are slowing sharing their data and eventually will use this as a tool in their lending decision making. So whilst I wouldn't run to get an Aussie credit card, it is not a bad idea to think about ways to start developing your credit rating here, because it will be a brand new file. Setting up with an Australian phone plan is a good start, and if you are renting first even paying your utilities bills on time can help build up your score.
Keep in mind that yes, a good credit score can help, but some banks value it more than others and it is not the be all and end all at the moment. What is more important is knowing which bank to go with and what is best for your particular circumstance.
Hope this helps, any questions feel free to ask!
Citroen 2014. Efficient safe family car. Sleek stylish Shark Gris colour. Lots of interior spec inc sat nav; Bluetooth; USBx2; lumbar massage in front seats; passenger foot rest; sunroof window; cruise; speed limiter. Remote keyless. 2 Keys. Full service history. Back row seats are comfortable and suitable for adults and quick to flick up and down. Still have good boot space when using all rows.
Manufacturers unlimited km warranty and roadside assist remain til Oct 2020.
Diesel 2litre engine, very nippy, great over distance with fuel economy as low as 5.8l/100km on the open road.
Selling as needed 7seater 4WD/AWD for our family.
Serviced 02/18; 4 new tyres; brakes rear and front 12/16; rego 04/18
PRICE: $18000 ono
pics to follow
2015 Mitsubishi Challenger 5 speed manual 2.5L diesel, one owner with full Mitsubishi service history and balance of 5 year new car warranty, including roadside assistance, and 4 year fixed price servicing remaining. Only driven 25000km!
Outstanding exterior condition, well cared for interior with some minor boot space scratches. Has 3000 kg towing capacity (tow bar required) with manual transmission providing greater control and performance off road. A great family car with plenty of boot space for camping trips. Full sized spare wheel and 4wd strap kit included. It is exceptional value at $30,795.
PM for pics and further info. Andrew 0404 561 945
Located in Parkside
Me and my partner are moving to Adelaide from Dubai in the 2nd week of November and are looking for short term (or long term) rental places not too far from the city (with convenient access to public transport).
Can someone refer some suitable places or websites for a 1 bed or studio rental. It seems that onset of Summer is a peak / busy time and rentals are hard to come by.
Also, what documents /proof, etc. do I need to get a place on rent? Any suggestions are welcome.