housing mortgage in australia

[nutbush]

how does it work? how much can you borrow and how much deposit? advice needed, thanks.

 

[syed putra]

I think prices of built up house in Thailand very much cheaper. Some with swimming pool. In places like Koh Samui hill top overlooking the sea. Or Phuket with sea view but no by the sea. Maybe got restriction for foreign purchase and that is why it has escaped investors appetite.

 

[Oracle]

I think prices of built up house in Thailand very much cheaper. Some with swimming pool. In places like Koh Samui hill top overlooking the sea. Or Phuket with sea view but no by the sea. Maybe got restriction for foreign purchase and that is why it has escaped investors appetite.

Koch Samui and Phuket quite ex too.

 

[syed putra]

You can subscribe to thaivisa and the advertised properties like apartment costs only about S$100-150k in pataya, Hua hin, krabi etc and small bungalows about S$200-300k, some with swimming pool.

 

[Ash007]

It depends on your circumstances. Monthly income, personal situation, deposits, area the property is in. Talk to the many mortgage broker to get better details. In general, Your monthly income will determine how much the bank will lend. Usually, depending on the bank, the ratio can be 3-5 times of your annual salary. The ratio depends on your personal situation, if you are married, is your spouse working, do you have kids etc. Again, depending on your personal expenses, and the bank, they will assume you need X amount of living expenses. Next comes deposit, if you have 20% of the deposit, then you don't pay mortgage insurance. Do remember that the mortgage insurance benefit the banks not you, this means that if you do default, you still need to pay back the loan, while the bank recover its losses through the insurance. You are still liable for the amount you have borrowed from the bank. Also remember, the 80% is Loan to Value Ratio, not final auction price. This means that if the bank deems that your house is only worth $1mil and you got thru auction to $1.2mil you would have to fork out $400K in order to make the 80% loan. You would have to also need to check the area/property that you are getting. Some banks view certain property as "unsustainable" and would not loan more then 60% of the asking price. Most notably are areas with many high rises. As land value are the ones that are actually increasing but not the actual physical structure.

Hope this answer some of your question. Wait for Neddy or Axe168 for more detailed analysis. Again, seek a good mortgage broker. I went through 3 mortgage broker before finding one that know what he/she is doing. There are a lot of dodgy broker out there, if you find one that is good your loan would be in a good shape.

how does it work? how much can you borrow and how much deposit? advice needed, thanks.

 

[neddy]

Hope this answer some of your question. Wait for Neddy or Axe168 for more detailed analysis. Again, seek a good mortgage broker. I went through 3 mortgage broker before finding one that know what he/she is doing. There are a lot of dodgy broker out there, if you find one that is good your loan would be in a good shape.

I do not think I can help.

I am in the business of building new houses for investment, so I have a special arrangement with the bank where I pay an annual fee for construction loans.

The trouble with Oz banks is that they like to loanshark you with fees and progress payments.

Eg when you take up a loan, you will be snapped with a loan application fees of several hundred dollars. Then there are progress payment fees and the bank inspection of construction progress fees. All these add up. I construct more than one house per year, so the bank can just live off my fees. So, what I do is to get them to just charge me an annual fee and forget able all the rubbish fees. So, I pay less fees then what a typical borrower pay for a loan. Otherwise, I take my business elsewhere.

I also have an free offset account that comes with this package. I do not use broker. A lot of cow boys outthere.

 

[Ash007]

Bro, you've done this for a long time. Don't forget there are a lot of people out there that don't buy/build a house on a regular basis. There is a lot of cowboys, but having a good mortgage broker really helps. Also good when you do some investigation yourself to see what is going on.

I do not think I can help.

I am in the business of building new houses for investment, so I have a special arrangement with the bank where I pay an annual fee for construction loans.

The trouble with Oz banks is that they like to loanshark you with fees and progress payments.

Eg when you take up a loan, you will be snapped with a loan application fees of several hundred dollars. Then there are progress payment fees and the bank inspection of construction progress fees. All these add up. I construct more than one house per year, so the bank can just live off my fees. So, what I do is to get them to just charge me an annual fee and forget able all the rubbish fees. So, I pay less fees then what a typical borrower pay for a loan. Otherwise, I take my business elsewhere.

I also have an free offset account that comes with this package. I do not use broker. A lot of cow boys outthere.

 

[neddy]

Bro, you've done this for a long time. Don't forget there are a lot of people out there that don't buy/build a house on a regular basis. There is a lot of cowboys, but having a good mortgage broker really helps. Also good when you do some investigation yourself to see what is going on.

Like what I wrote earlier, I cannot help. I can only give some ideas that consumers should watch out for themselves. And if the loan is >$500k, you can negotiate for a better deal.

The Choice magazine/website is quite good for general advice.

It is important to know that some mortgage brokers do not have access to better deals offered by the banks themselves.

Also, banks will even waiver transfer fees when you switch loans within the bank, etc.

In today's climate, banks are a lot more reluctant to lend out money, eg if you are in jobs at high risk of retrenchment - that includes mining.

The questions they ask are also telling - they are asking very personal questions now before they will lend out.

 

[Ash007]

500k can get better deal? I thought need 1mil? What other jobs considered high risk?

Like what I wrote earlier, I cannot help. I can only give some ideas that consumers should watch out for themselves. And if the loan is >$500k, you can negotiate for a better deal.

The Choice magazine/website is quite good for general advice.

It is important to know that some mortgage brokers do not have access to better deals offered by the banks themselves.

Also, banks will even waiver transfer fees when you switch loans within the bank, etc.

In today's climate, banks are a lot more reluctant to lend out money, eg if you are in jobs at high risk of retrenchment - that includes mining.

The questions they ask are also telling - they are asking very personal questions now before they will lend out.

 

[nutbush]

thks all for advice, appreciate it.

 

[axe168]

Ha ! Thank you for your promotion. I hv nothing to contribute since ya explanation is so detailed. My chickens have laid substantial eggs liao. In the next 2 yrs, i shall cash out the golden eggs. And move to a middle income suburb.
Set up a premier banking to migrate my eggs. By 50, semi retirement.. By 67, i shall draw my pension & live happily ever after

Bloody PAP dogs wanna see me dead, sadly i survived the storm and emerged stronger than ever ! Yay...

It depends on your circumstances. Monthly income, personal situation, deposits, area the property is in. Talk to the many mortgage broker to get better details. In general, Your monthly income will determine how much the bank will lend. Usually, depending on the bank, the ratio can be 3-5 times of your annual salary. The ratio depends on your personal situation, if you are married, is your spouse working, do you have kids etc. Again, depending on your personal expenses, and the bank, they will assume you need X amount of living expenses. Next comes deposit, if you have 20% of the deposit, then you don't pay mortgage insurance. Do remember that the mortgage insurance benefit the banks not you, this means that if you do default, you still need to pay back the loan, while the bank recover its losses through the insurance. You are still liable for the amount you have borrowed from the bank. Also remember, the 80% is Loan to Value Ratio, not final auction price. This means that if the bank deems that your house is only worth $1mil and you got thru auction to $1.2mil you would have to fork out $400K in order to make the 80% loan. You would have to also need to check the area/property that you are getting. Some banks view certain property as "unsustainable" and would not loan more then 60% of the asking price. Most notably are areas with many high rises. As land value are the ones that are actually increasing but not the actual physical structure.

Hope this answer some of your question. Wait for Neddy or Axe168 for more detailed analysis. Again, seek a good mortgage broker. I went through 3 mortgage broker before finding one that know what he/she is doing. There are a lot of dodgy broker out there, if you find one that is good your loan would be in a good shape.

 

[Ash007]

Ther are signs property prices might fall or stabilise. Got a friend wanting to get a loan and the bank manager said to wait. Sydney property prices are too hot at the moment no point entering now.

Ha ! Thank you for your promotion. I hv nothing to contribute since ya explanation is so detailed. My chickens have laid substantial eggs liao. In the next 2 yrs, i shall cash out the golden eggs. And move to a middle income suburb.
Set up a premier banking to migrate my eggs. By 50, semi retirement.. By 67, i shall draw my pension & live happily ever after

Bloody PAP dogs wanna see me dead, sadly i survived the storm and emerged stronger than ever ! Yay...

 

[axe168]

Ther are signs property prices might fall or stabilise. Got a friend wanting to get a loan and the bank manager said to wait. Sydney property prices are too hot at the moment no point entering now.

If you look at neddy's chart.. China is currently the biggest investor. From charting, it is likely to break a new resistance level. I hv no comment on Sydney. But i am living in a high end chinese suburb.. IMHO, there's no end to boom for next few yrs.. Major boom will come when Australia economy is back on track and everyone is buying or queueing of properties.

 

[Ash007]

Actually the North American , Canadian and American is 30% versus the Chinese at 19%. Certain suburbs would grow.

If you look at neddy's chart.. China is currently the biggest investor. From charting, it is likely to break a new resistance level. I hv no comment on Sydney. But i am living in a high end chinese suburb.. IMHO, there's no end to boom for next few yrs.. Major boom will come when Australia economy is back on track and everyone is buying or queueing of properties.

 

[The_Hypocrite]

In perth. Good location n popular locations will always do well. Like Suburbs near CBD n the golden beach area like Trigg n Scarborough till Joondalup..to me Joondalup is too far..

Actually the North American , Canadian and American is 30% versus the Chinese at 19%. Certain suburbs would grow.

 

[888Migration]

I just refinanced with HSBC in Perth....... 4.75%...... one of the cheapest rates around......

 

[neddy]

I just refinanced with HSBC in Perth....... 4.75%...... one of the cheapest rates around......

Thanks for the info.

Bankwest discount 0.1% for loan > $500k but still 4.84% p.a.
4.79% p.a. is the lowest, starts from $750k.

 

[Ash007]

HSBC need like $1mil loan the last time I checked for low rates.

Thanks for the info.

Bankwest discount 0.1% for loan > $500k but still 4.84% p.a.
4.79% p.a. is the lowest, starts from $750k.

 

[neddy]

HSBC need like $1mil loan the last time I checked for low rates.

Hey Ash007,

I checked this morning.

http://www.hsbc.com.au/1/2/personal/home-loans/products/key-facts-sheet

Loan Amount* $100000
Term Of Loan* 30 years
Interest Type* Variable
Matching Loans* Home Value Loan

The interest is 4.75%

 

[Ash007]

Nice, maybe I should switch.

Hey Ash007,

I checked this morning.

http://www.hsbc.com.au/1/2/personal/home-loans/products/key-facts-sheet

Loan Amount* $100000
Term Of Loan* 30 years
Interest Type* Variable
Matching Loans* Home Value Loan

The interest is 4.75%