Australian Expat Finance FAQ
FAQ’s Which is the best home loan for me?
There are different types of loans from a Basic (no frills) loan to a Professional Package loan (with offset account and credit card attached). As is the case in life, the more options you have, the more you pay for those options (as a general rule). Each lender has a suite of products that may be appropriate to you, the key is to understand what features are going to benefit you in the longer term – eg if you are paying for a service, are you benefiting from it.
How much can I borrow?
How much you can borrow is dependent on a range of factors, they are:
- What is your personal situation – eg, single, married, how many dependants do you have etc
- What is your household income?
- Do you have any other loans relating to property?
- Do you have any other debts, eg, car loan, credit cards or personal loan
- Are you a guarantor to any debts
- What is your credit history like – do you have any arrears or judgements against you?
How much will my repayments be?
Your repayments will depend in the following factors:
- What is the size of the loan
- What is the length of the loan
- What is the interest rate for the loan
- What fees are associated with the loan
- Is the loan Interest only or Principal and Interest?
How much deposit do I need to buy a home?
Potentially you can buy a new home with very little savings – this could be the FHOG and minimal additional funds. It totally depends on your ability to demonstrate to a lender that you are a good risk, eg Are you currently renting, can you demonstrate you are able to afford the repayments and that you are diligent at making payments? What other debts do you have? Each case is assessed on its individual merits, ask us, we may be able to assist you.
What is the best interest rate I can get?
The important factor with interest rates is to understand the difference between the “Headline Rate” and the “Comparison Rate”. You may see, what you think to be a low rate advertised, but read the small print. In the small print of any advertised rate is the comparison rate – the actual rate (based on a specific loan size) you pay – this includes all of the fees relevant to the loan. The key is to always remember to read the small print!
How do I know which loan best suits me?
We are all individuals and we all have different factors that affect our personal situation and also different goals. Ask us the question, we can assist you to identify which type of loan suits your specific needs, then we will look at which lender has the best balance between fees and interest rate. Once we have identified the best lender and product, we will open negotiations to see if they can improve the offer for you based on your circumstances…
How long will it take to gain unconditional approval (full approval)?
The application process for a loan has many differing factors, the way to think about it is, how do you demonstrate to a lender that you are a good risk (for the loan)? The lender requires an application form to be completed and will need you to provide documentation to support the information provided in the application – the simpler the case, generally, the quicker the loan gets approved. The general rules here are to ensure ALL required information is provided at application stage, if this is done the only information the lender will need (that you are not able to provide) is the valuation to the property. As a general rule, if everything is done correctly a loan can be fully approved within 72 hours – from ALL required information/documentation being provided.
How much stamp duty will I need to pay?
Stamp Duty is a tariff placed on property purchases and it’s level is set by each State or Territory Government. Click the link for a calculator to assist you.
What are the pros/cons of fixed rates verses variable rates?
The way I look at the question of Fixed v Variable is potentially different to the way you may think. Usually the decision is based on whether you believe interest rates are trending up or trending down. If you think interest rates are going to go up, you fix in a rate that will hopefully be lower than the Variable Base Rate over the term of the fixed rate period.
The way I recommend my clients to look at it is, can you afford a rate rise? When we apply for a loan for you we ensure your current cash flow can cope with an increase of 2+%. What this does not consider though is what other costs you may have once you are in the new home? Will you be renovating, buying new furniture etc, if you are and with those additional costs could not comfortably afford a rate rise, then we would recommend fixing the rate for an appropriate period. Alternatively, if you have a great crystal ball and can predict the interest rate movements, then make a decision based on that information…
What is an offset account?
An offset account is a bank account that you can hold funds in and those funds will be “offset” against the funds in your mortgage/loan account. Interest is calculated on a daily basis and you only pay interest on the net amount of your loan account and offset account. Eg, if you had a $500,000 loan and $100,000 in your offset account, then you are only charged interest on $400,000.
What is Lenders Mortgage Insurance and how much will it cost me?
Lenders’ mortgage insurance is a one off insurance premium that protects your lender in the unfortunate event of you defaulting on your home loan. When lenders agree to lend money, there is a small risk that they won’t get the money back if the customer is not able to meet the repayments. Although they have the house as security, if property values decline that security may not be enough to cover the outstanding loan when the lender comes to sell it.
Can I make extra repayments off my loan?
As a general rule, yes if you have a variable rate loan and if you have a fixed rate loan you may be able to pay off a specified amount, if you pay off more than that amount, then you may incur penalties for doing so.
What is a comparison rate for home loans?
A comparison rate is an estimate of the actual rate (based on a specific loan size and loan term) you pay – this includes all of the fees relevant to the loan.
Mortgage Brokers?
What do mortgage brokers do?
The tasks a Mortgage Broker does when you buy or refinance a property are:
- Help you to assess what type of loan will suit your specific needs
- Identify which lender has the most appropriate loan based on your requirements, the rates available and the fees being charged
- Assist you to present the best possible case to the lender that represents your current and future position
- Liaises between you, the lender and the conveyancer to ensure the transaction happens within the desired timeframe
How do mortgage brokers get paid?
Mortgage Brokers are paid by the lender directly. Lenders have products that they want to sell, within that products cost structure is an amount that pays for it’s distribution. The interest rate you pay is the same amount regardless of the way you get to the product, this could be through a bank lender, a banks mobile lender or an external broker.
Which lenders do you have access to?
Will I get a better rate by going direct to a bank?
The interest rate you pay is the same amount regardless of the way you get to the product, this could be through a bank lender, a banks mobile lender or an external broker.
Which is the best home loan for me?
There are different types of loans from a Basic (no frills) loan to a Professional Package loan (with offset account and credit card attached). As is the case in life, the more options you have, the more you pay for those options (as a general rule). Each lender has a suite of products that may be appropriate to you, the key is to understand what features are going to benefit you in the longer term – eg if you are paying for a service, are you benefiting from it.
How much can I borrow?
How much you can borrow is dependent on a range of factors, they are:
- What is your personal situation – eg, single, married, how many dependants do you have etc
- What is your household income?
- Do you have any other loans relating to property?
- Do you have any other debts, eg, car loan, credit cards or personal loan
- Are you a guarantor to any debts
- What is your credit history like – do you have any arrears or judgements against you?
How much will my repayments be?
Your repayments will depend in the following factors:
- What is the size of the loan
- What is the length of the loan
- What is the interest rate for the loan
- What fees are associated with the loan
- Is the loan Interest only or Principal and Interest?
How much deposit do I need to buy a home?
Potentially you can buy a new home with very little savings – this could be the FHOG and minimal additional funds. It totally depends on your ability to demonstrate to a lender that you are a good risk, eg Are you currently renting, can you demonstrate you are able to afford the repayments and that you are diligent at making payments? What other debts do you have? Each case is assessed on its individual merits, ask us, we may be able to assist you.
What is the best interest rate I can get?
The important factor with interest rates is to understand the difference between the “Headline Rate” and the “Comparison Rate”. You may see, what you think to be a low rate advertised, but read the small print. In the small print of any advertised rate is the comparison rate – the actual rate (based on a specific loan size) you pay – this includes all of the fees relevant to the loan. The key is to always remember to read the small print!
How do I know which loan best suits me?
We are all individuals and we all have different factors that affect our personal situation and also different goals. Ask us the question, we can assist you to identify which type of loan suits your specific needs, then we will look at which lender has the best balance between fees and interest rate. Once we have identified the best lender and product, we will open negotiations to see if they can improve the offer for you based on your circumstances…
How long will it take to gain unconditional approval (full approval)?
The application process for a loan has many differing factors, the way to think about it is, how do you demonstrate to a lender that you are a good risk (for the loan)? The lender requires an application form to be completed and will need you to provide documentation to support the information provided in the application – the simpler the case, generally, the quicker the loan gets approved. The general rules here are to ensure ALL required information is provided at application stage, if this is done the only information the lender will need (that you are not able to provide) is the valuation to the property. As a general rule, if everything is done correctly a loan can be fully approved within 72 hours – from ALL required information/documentation being provided.
How much stamp duty will I need to pay?
What are the pros/cons of fixed rates verses variable rates?
The way I look at the question of Fixed v Variable is potentially different to the way you may think. Usually the decision is based on whether you believe interest rates are trending up or trending down. If you think interest rates are going to go up, you fix in a rate that will hopefully be lower than the Variable Base Rate over the term of the fixed rate period.
The way I recommend my clients to look at it is, can you afford a rate rise? When we apply for a loan for you we ensure your current cash flow can cope with an increase of 2+%. What this does not consider though is what other costs you may have once you are in the new home? Will you be renovating, buying new furniture etc, if you are and with those additional costs could not comfortably afford a rate rise, then we would recommend fixing the rate for an appropriate period. Alternatively, if you have a great crystal ball and can predict the interest rate movements, then make a decision based on that information…
What is an offset account?
An offset account is a bank account that you can hold funds in and those funds will be “offset” against the funds in your mortgage/loan account. Interest is calculated on a daily basis and you only pay interest on the net amount of your loan account and offset account. Eg, if you had a $500,000 loan and $100,000 in your offset account, then you are only charged interest on $400,000.
What is Lenders Mortgage Insurance and how much will it cost me?
Lenders’ mortgage insurance is a one off insurance premium that protects your lender in the unfortunate event of you defaulting on your home loan. When lenders agree to lend money, there is a small risk that they won’t get the money back if the customer is not able to meet the repayments. Although they have the house as security, if property values decline that security may not be enough to cover the outstanding loan when the lender comes to sell it.
Can I make extra repayments off my loan?
As a general rule, yes if you have a variable rate loan and if you have a fixed rate loan you may be able to pay off a specified amount, if you pay off more than that amount, then you may incur penalties for doing so.
What is a comparison rate for home loans?
A comparison rate is an estimate of the actual rate (based on a specific loan size and loan term) you pay – this includes all of the fees relevant to the loan.
Mortgage Brokers?
What do mortgage brokers do?
The tasks a Mortgage Broker does when you buy or refinance a property are:
- Help you to assess what type of loan will suit your specific needs
- Identify which lender has the most appropriate loan based on your requirements, the rates available and the fees being charged
- Assist you to present the best possible case to the lender that represents your current and future position
- Liaises between you, the lender and the conveyancer to ensure the transaction happens within the desired timeframe
How do mortgage brokers get paid?
Mortgage Brokers are paid by the lender directly. Lenders have products that they want to sell, within that products cost structure is an amount that pays for it’s distribution. The interest rate you pay is the same amount regardless of the way you get to the product, this could be through a bank lender, a banks mobile lender or an external broker.
Which lenders do you have access to?
Will I get a better rate by going direct to a bank?
The interest rate you pay is the same amount regardless of the way you get to the product, this could be through a bank lender, a banks mobile lender or an external broker.
Which is the best home loan for me?
There are different types of loans from a Basic (no frills) loan to a Professional Package loan (with offset account and credit card attached). As is the case in life, the more options you have, the more you pay for those options (as a general rule). Each lender has a suite of products that may be appropriate to you, the key is to understand what features are going to benefit you in the longer term – eg if you are paying for a service, are you benefiting from it.
How much can I borrow?
How much you can borrow is dependent on a range of factors, they are:
- What is your personal situation – eg, single, married, how many dependants do you have etc
- What is your household income?
- Do you have any other loans relating to property?
- Do you have any other debts, eg, car loan, credit cards or personal loan
- Are you a guarantor to any debts
- What is your credit history like – do you have any arrears or judgements against you?
How much will my repayments be?
Your repayments will depend in the following factors:
- What is the size of the loan
- What is the length of the loan
- What is the interest rate for the loan
- What fees are associated with the loan
- Is the loan Interest only or Principal and Interest?
How much deposit do I need to buy a home?
Potentially you can buy a new home with very little savings – this could be the FHOG and minimal additional funds. It totally depends on your ability to demonstrate to a lender that you are a good risk, eg Are you currently renting, can you demonstrate you are able to afford the repayments and that you are diligent at making payments? What other debts do you have? Each case is assessed on its individual merits, ask us, we may be able to assist you.
What is the best interest rate I can get?
The important factor with interest rates is to understand the difference between the “Headline Rate” and the “Comparison Rate”. You may see, what you think to be a low rate advertised, but read the small print. In the small print of any advertised rate is the comparison rate – the actual rate (based on a specific loan size) you pay – this includes all of the fees relevant to the loan. The key is to always remember to read the small print!
How do I know which loan best suits me?
We are all individuals and we all have different factors that affect our personal situation and also different goals. Ask us the question, we can assist you to identify which type of loan suits your specific needs, then we will look at which lender has the best balance between fees and interest rate. Once we have identified the best lender and product, we will open negotiations to see if they can improve the offer for you based on your circumstances…
How long will it take to gain unconditional approval (full approval)?
The application process for a loan has many differing factors, the way to think about it is, how do you demonstrate to a lender that you are a good risk (for the loan)? The lender requires an application form to be completed and will need you to provide documentation to support the information provided in the application – the simpler the case, generally, the quicker the loan gets approved. The general rules here are to ensure ALL required information is provided at application stage, if this is done the only information the lender will need (that you are not able to provide) is the valuation to the property. As a general rule, if everything is done correctly a loan can be fully approved within 72 hours – from ALL required information/documentation being provided.
How much stamp duty will I need to pay?
Stamp Duty is a tariff placed on property purchases and it’s level is set by each State or Territory Government. See the link below for a calculator to assist you.
http://www.realestate.com.au/blog/stamp-duty-calculator/
What are the pros/cons of fixed rates verses variable rates?
The way I look at the question of Fixed v Variable is potentially different to the way you may think. Usually the decision is based on whether you believe interest rates are trending up or trending down. If you think interest rates are going to go up, you fix in a rate that will hopefully be lower than the Variable Base Rate over the term of the fixed rate period.
The way I recommend my clients to look at it is, can you afford a rate rise? When we apply for a loan for you we ensure your current cash flow can cope with an increase of 2+%. What this does not consider though is what other costs you may have once you are in the new home? Will you be renovating, buying new furniture etc, if you are and with those additional costs could not comfortably afford a rate rise, then we would recommend fixing the rate for an appropriate period. Alternatively, if you have a great crystal ball and can predict the interest rate movements, then make a decision based on that information…
What is an offset account?
An offset account is a bank account that you can hold funds in and those funds will be “offset” against the funds in your mortgage/loan account. Interest is calculated on a daily basis and you only pay interest on the net amount of your loan account and offset account. Eg, if you had a $500,000 loan and $100,000 in your offset account, then you are only charged interest on $400,000.
What is Lenders Mortgage Insurance and how much will it cost me?
Lenders’ mortgage insurance is a one off insurance premium that protects your lender in the unfortunate event of you defaulting on your home loan. When lenders agree to lend money, there is a small risk that they won’t get the money back if the customer is not able to meet the repayments. Although they have the house as security, if property values decline that security may not be enough to cover the outstanding loan when the lender comes to sell it.
Can I make extra repayments off my loan?
As a general rule, yes if you have a variable rate loan and if you have a fixed rate loan you may be able to pay off a specified amount, if you pay off more than that amount, then you may incur penalties for doing so.
What is a comparison rate for home loans?
A comparison rate is an estimate of the actual rate (based on a specific loan size and loan term) you pay – this includes all of the fees relevant to the loan.
Mortgage Brokers?
What do mortgage brokers do?
The tasks a Mortgage Broker does when you buy or refinance a property are:
- Help you to assess what type of loan will suit your specific needs
- Identify which lender has the most appropriate loan based on your requirements, the rates available and the fees being charged
- Assist you to present the best possible case to the lender that represents your current and future position
- Liaises between you, the lender and the conveyancer to ensure the transaction happens within the desired timeframe
How do mortgage brokers get paid?
Mortgage Brokers are paid by the lender directly. Lenders have products that they want to sell, within that products cost structure is an amount that pays for it’s distribution. The interest rate you pay is the same amount regardless of the way you get to the product, this could be through a bank lender, a banks mobile lender or an external broker.
Which lenders do you have access to?
We have access to over 45 different lenders, all with many products, click on the link below to see some of the institutions we can work with
Will I get a better rate by going direct to a bank?
The interest rate you pay is the same amount regardless of the way you get to the product, this could be through a bank lender, a banks mobile lender or an external broker.