international mortgages
australia
Essential information for buying properties in Australia
Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.
- For any non-Australian national buying a property, Foreign Investment Review Board (FIRB) approval must be applied for, via an Australian solicitor, or directly through the FIRB
- It is of paramount importance to seek independent advice from an overseas solicitor.
- You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying an Australian property. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.
- Please be aware that the solicitor or notary may be incorporating costs for assigning the mortgage within his charges, and you should establish the actual cost before proceeding with a loan application.
- All mortgages should have a suitable life assurance policy assigned to them. It is not mandatory but strongly advisable
Average costs
Land registry which varies from state to state approximately 2% of purchase price
Stamp duty on mortgage plus purchase approximately 0.50% of purchase price
Mortgage set up costs 1% of loan amount
Legal and broker fees 1% of purchases prices
Eligibility and criteria
- We typically arrange loans in AUS Dollars or Sterling; however other currencies are available if your salary is paid in that currency
- Repayment and Interest only loans are available
- The maximum loan to value for a purchase is 70%
- The maximum term is 30 years.
- The minimum loan amount is £100,000 with no maximum
Affordability
To qualify for a mortgage in Australia, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete our enquiry form and we will not charge you for this service.
For example if your net joint income is £3,000, existing UK mortgage is £500 per month, existing loan payments of £100 per month and the Australian mortgage is £350 per month. This gives you an affordability ratio of 31.6%(£500 + £100 + £350) divided by £3,000 OR if, for example, your gross annual income is £100k per annum we will use 5 x £100k, minus any existing mortgage/other existing debts. For example, £100k per annum x 5 = £500k minus existing mortgage borrowing of £75k and no other existing debts, we could therefore lend £425k.
The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.
Proof of income requirements
If you are employed:
- Your last three month’s payslips
- Your latest P60 and employers reference
- Your last three month’s personal bank statements
If you are self-employed:
- Your last two year’s audited accounts, tax returns and accountants reference
- Your last 3 month’s personal bank statements
Other documents will be required and will be confirmed when application forms are sent to you.
If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948
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