How Easy it is to Access a Home Loan in Australia
Having a nice cozy home in Australia is everyone’s dream. Whether you want a home for your family or for yourself, which place can be better other than Australia with beautiful beaches and amazing summers. There are different types of mortgages available in Australia and you should be well aware about them. It is very hard to find expat mortgage at the moment so you have to look for a proper and liable help and you have to be ready to face higher costs. It is achievable to have a house in Australia.
Mortgages available in Australia:
The mortgage market is well developed and there are many providers for you to choose from. You should have a clear understanding of the mortgages so you can decide which one is good for you. Firstly, decide if you want a fixed rate or variable rate product. Fixed rate will ensure the same exact interest rate over the whole course of mortgage time period while variable rate product can cost more or less depending on how the interest rate changes in Australia. The third possibility that you can see is hybrid option. It is a variable discounted rate before moving to the bank’s Standard Variable Rate (SVR). The pro pack will include other banking services such as credit cards and feature discounted prices as long as you are ready to take the whole package.
Bank or a Broker:
You have two choices at this point, whether to arrange mortgage by yourself or hire a broker to do so. If you are indecisive on what type of product is good for you, take expert advice from a qualified mortgage broker. Many times the information that you need is for free, if you are buying a residential property. A mortgage broker has many different lender’s policies and offer, so it can be clear for you what you want. And therefore the broker is often the better option due to the nuances of Lenders and Governments policies.
There is a few paperwork that the bank will require to use it for issuing you the mortgage. Here are a few documents that are expected to be asked by you.
- copies of your personal identification (passport).
- proofs that you can afford to buy a property under FIRB rules.
- proof of legal residence in Australia.
- documents to prove your credibility (credit cards, bank statements etc.).
- documents to prove the affordability of the mortgage.
When arranging a mortgage, it is inevitable that you will be paying administrative fees and legal costs. Some states have additional stamp duty which has to be paid, based on the value of the residence you are trying to buy. The following fees is expected when arranging a mortgage:
- legal fees which might start from AUD 2000.
- loan establishment fees which may go up to AUD 900.
- property inspection fees up to AUD 800.
- Stamp duty and sometimes foreign stamp duties which is directly associated with the residence value.
Intellichoice can smooth over the myriad of issues that can occur when borrowing abroad. Reach out to us if you have any questions or complete our online form for a speedier service.