Home Loans for new Australians
Now some lenders and mortgage brokers are specialising in home loans for non-residents.
In Australia, finance is complex enough for Australian who were born and have lived all of their life in Australia. The growth in use of mortgage brokers for loans, with about half of loans now coming via a mortgage broker, is evidence of that. So for immigrants, temporary visa holders and foreign investors obtaining a home loan or investment loan through an an Australian bank or other lender must be is easier. Combined with their unfamiliarity with the Australian financial institutions and systems non-residents are not eligible for loans at many of the Australian lenders.
This has also led to some mortgage brokers specialising in work visa home loans or other specialist home loans like student visa home loans or loans for foreigners living overseas purchasing Australian property.
Almost every week at least Australian bank and lender assess and update their products and/or policies, sometimes many banks and lenders change their products and or policies. This could be in response to movements in the Reserve Banks of Australia's interest rate changes, other economic indicators, competitor changes or new knowledge about risk and return.
All of these changes make it very difficult for the average person to really assess where the good deals are and take advantage of them. This is one of the main reasons that mortgage brokers are becoming more popular with the general public. Another reason may be that more investors are taking out property investment loans. Investors are more cost conscious and often have more complex loan structures. A good mortgage broker will make sure that your needs are put before the banks. Bank policy is often to minimise the risk to the bank and maximise your risk by default. A good mortgage broker can keep an eye on the lender make sure that your best interests are put first. A classic example of this is cross collateralisation. The bank will always prefer that all of your loans and properties with them are linked so that they can take them all if something goes wrong. Where as you as a property investor probably do not want this as it means that you have less flexibility should you want change your loans in the future or sell a property.
Resources
Reserve Bank of Australia www.rba.gov.au
Finance
information was obtained from www.oaklaurel.com.au
Oak Laurel
Notting
Hill VIC 3168
0430 129
662
info@oaklaure.com.au
Oak
Laurel
Kaleen
ACT 2617
0481 368
884
info@oaklaure.com.au
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