Heather Posted March 9, 2015 Report Share Posted March 9, 2015 For those of you interested, I am a Mortgage Broker (Bond Originator as some of you know) and I was asked to enlighten members on the forum as to how you can buy houses on 457 visa's. It is advisable first of all to go through a Broker as they will know which Lender to approach who will lend to 457 visa applicants (not all lenders do), you will need a 20% deposit, unless of course you are in the medical profession and qualify under the medico product, then they may look at lending up to 90%. You will need to obtain FIRB (Foreign investment review board) approval prior to your home loan being approved. You will need to educate your Real Estate agent, if they have not dealt with a 457 visa before, as they will need to make 30 days for FIRB approval as part of the condition and then allow for two more days for finance approval (32 days) as finance approval can only go unconditional once the FIRB approval has come through. However, some estates already have FIRB approval on all their blocks, if this is the case then there is no clause needed for FIRB approval and the FIRB approval from the developer is all that is needed (they will give you a copy which will be sent to the bank), I always advise my clients to make sure they follow the rules as you dont want to be at the stage where you are applying for your PR and they discover that you have not done the FIRB approval.They will do a 30 year term on 457 visa's if you go with the right bank. Be careful not to shop around on your own as each time you shop around, you get a hit on your credit rating. If you have more than a set amount (depending on the lenders) over a period of between 3 - 6 months, this could hinder your ability to get a loan as some of the lenders do what we call credit scoring and the hits on your credit rating appear as part of this credit scoring. That is why it is important not to do this, if you are doing any kind of comparison, use the internet and compare products online without giving away your details. Some South Africans believe that they have to get a credit history when they arrive and apply for car loans and credit cards. The credit history that they are looking for is basically what comes up on your credit rating, that is each time you apply for credit in the form of credit cards, personal loans, car loans etc. Each time you apply for telephones, electricity, water etc, this all forms part of your credit history. If you do have to get a credit card (I dont advise my clients to do this), then please, stick to a low limit. Getting a limit of $25 000 doesnt mean you are a good credit client, what it means to the bank when they are assessing you for a loan is that you have spent $25 000, so they assess you on the repayment of $25 000 at credit card interest rates, thus allowing you to borrow less than you would normally be able to if you didnt have a credit card or if you only had a small limit.If you are not on a 457 visa and are a permanent resident, then you can borrow up to 99% through some lenders, however, with this amount in mind, this has to include the mortgage insurance premium and a slightly higher than standard interest rate. The standard borrowing is 95% capitilising mortgage insurance up to 97% for first home buyers or with some of the major lenders only up to 95% including the mortgage insurance. Remember when buying your first home, if you are in QLD and you keep your purchase price below $500 000 there will be no stamp duty, if you are buying above that amount then you will incur stamp duty costs. As a first home buyer anywhere in the world you would qualify for a discounted rate, however, if you get asked the question by the solicitor -have you ever owned a property anywhere else in the world and your answer is "yes" then you would not qualify for a reduced rate. Remember when buying above the 80% mark, a lot of the lenders require the deposit to be genuinely saved over a period of 3 months, (Sale of a house previously is acceptable, non- refundable gifts are acceptable to some lenders)I am happy to answer any questions you may have on the above topic as everyone's circumstances are different. 2 Quote Link to comment Share on other sites More sharing options...
leeferg1 Posted March 9, 2015 Report Share Posted March 9, 2015 Thank you Heather! Quote Link to comment Share on other sites More sharing options...
Parks Posted March 13, 2015 Report Share Posted March 13, 2015 Thank you Heather,How would calculate what amount one would qualify for based on ones earnings.Also how would you estimate your repayments amount, for example what percentage of the amount borrowed? in SA we always worked on approx. 10% of the amount borrowed. So if you borrowed R1mil your average repayment would be R10 000 per month..I understand period also affects repayment amt.Thanks for your advice its greatly appreciated Quote Link to comment Share on other sites More sharing options...
GarethDavies Posted March 16, 2015 Report Share Posted March 16, 2015 Hi Heather - I am in Brisbane do you do a lot of work here or where are you based? The reason I am asking is that I am a wealth manager here and get a lot of people asking me about property investing in Australia.Gareth Quote Link to comment Share on other sites More sharing options...
Riekie Posted March 17, 2015 Report Share Posted March 17, 2015 This is a very handy website with heaps of calculators for how much you'll qualify for, what your repayments will be etc.http://www.yourmortgage.com.au/calculators/ Quote Link to comment Share on other sites More sharing options...
sa2uk2oz Posted March 22, 2015 Report Share Posted March 22, 2015 Heather helped us buy our home when we moved here in 2007- very helpful and informative for those of you who require assistance Quote Link to comment Share on other sites More sharing options...
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