As of March 2019, Australia is currently experiencing one of its worst housing market drops ever and it is projected to continue to fall. Though this is horrible for sellers in Australia, the time is right for buyers to start thinking about purchasing a home in Australia. A lot of questions come to mind when thinking of purchasing a new home in Australia, such as: Am I eligible as a foreigner? What about bank loans? Is there any particular laws I have to be mindful of?
Mortgage Loan Pre-approval
The first thing you are going to need to do is find a mortgage broker. These are the people who can help insure you put the your best foot forward when applying for a loan whether it is in Australia or any other housing market. When looking for that wonderful pre-approved status you must have a good credit score as well as income history that proves you are able to pay off the mortgage loan. You probably will have the most luck in getting mortgage loan with your current local bank. They will be able to take into account your income history as well as your credit score and any other applicable factors in securing your loan.
It is also possible to acquire a lender in Australia. As a non-resident you could possibly receive a mortgage loan up to 70% of property value and some lenders are even willing to go as high as 95%.
If you are a New Zealand citizen, you will receive better rates on your home loans than other foreign nationals as lenders are mindful of the close relationship that New Zealand has with Australia. Also, remember that some banks may not be willing to receive particular foreign currencies when deciding the terms of your loan. After your mortgage has been pre-approved the next step is to find a house you want to buy and work out the details with the seller.
FIRB Approval
Next you must apply for approval with the Australian Foreign Investment Review Board or the FIRB for short. The FIRB takes many things into account when granting your approval and it is best to check the guidelines on their website. For quick reference purposes if you are a citizen, or permanent resident of Australia or a citizen New Zealand you need not apply. All others should look into the guidelines on the FIRB website and see if you’re eligible for approval. Be sure to check the application fee section on the FIRB website when you know the cost of the home you want to purchase. Any home under 1 million dollars has an application fee of 5,600 dollars and the fee scales the higher the price of the house. Approval may take up to 30 days.
Consider Payment Fees
So, you received approval for your mortgage and you have been approved by the FIRB, now you must consider the payment fees you will incur due to international banking policies. Banks will charge you to process your payments and while these fees may seem to be at a low rate they will quickly add up over the course of time. It is best to use one of the many online services for wiring money to different accounts to help you with this process. There are many services that don’t charge you a fee for wiring money internationally and a quick online search could lead you to the right one for you.
So, though there are many things to take into account when looking into buying property in Australia it is easy to find out your eligibility as well as find someone to help you with the whole process of securing a mortgage loan. Your best resource will be the guidelines on the FIRB website to quickly find out what you need to do to move forward and own a beautiful home in Australia.