LTV: (known as LVR in Australia)

• 95% Resident only (with additional fees and higher rate. Max lend A$650,000)
• 90% Resident Only
• 85% Resident Remortgage for capital raising (max lend for studio apartments)
• 80% Non- Resident Investment Mortgage and Resident Self Build Mortgage
• 75% Commercial Mortgage
• 70% UK bank on residential property
• 60% Farm / Rural property mortgage

The LTV is the maximum a lender will advance and is the lower of purchase price or valuation.

Rates:

Mortgage Rates are tiered according to LTV. The most competitive rates are from overseas banks for investment properties, except at high LTV's.

• >50% AUD Mortgage (Reserve Bank of Australia Rate- currently 3%) + 1.49% margin
• >50% Sterling Mortgage (BoE Base Rate – currently 0.5%) + 1.69% margin
• 50% – 60% AUD Mortgage ( Reserve Bank of Australia Rate – currently 3% ) + 1.59% margin
• 50% - 60% Sterling Mortgage (BoE Base Rate – currently 0.5%) + 1.79% margin
• 60% - 70% AUD Mortgage ( Reserve Bank of Australia Rate – currently 3% ) + 1.79% margin
• 60% - 70% Sterling Mortgage (BoE Base Rate – currently 0.5%) + 1.99% margin
• 70% - 80% 4.79% Residents Occupied 6.16% Residents Investment 6.5% Non Resident
• 80% + Residents Only 6.09%

Term:

Mortgage terms for Residents are between 5 and 30 years, and must be paid off by age 70. For non-Residents, the choice is better, with some lenders not applying the age restriction.

Products:

The available product range for non-residents is in some cases significantly better than that available to residents of Australia, and  it is typically possible to obtain the following types of mortgages:

• Fixed rate
• Adjustable rate
• Flexible repayment mortgage
• Multi currency loans
• Interest only investment mortgages

Offset Mortgages:

The Australian market has a diverse variety of mortgage providers, from the big multi national and national banks through to small building societies and specialist lenders, just as in the UK. As a broker we have many broker only products available to us. Not all lenders serve all states and areas of the country. For residents it is also possible to obtain bad credit mortgages. Most Australian lenders will require you to pass an Australian Credit Bureau check, which will be impossible if you have not had a loan in Australia previously.

Affordability:

Typically mortgages can be arranged up to 5x sole or joint income, so long as the committed monthly outgoings do not exceed 50% of net monthly income. Non-Residents looking for mortgages in Australia need to prove their income, whereas low-documentation mortgages are available to residents. For the salaried, payslips will be required but if you're self-employed, get your accountant to write a letter confirming your income. In addition, we require business accounts for the last two years (translated into English)

Most Australian lenders will require you to pass an Australian Credit Bureau check, which will be impossible if you have not had a loan in Australia before.

Nationality:

We are usually able to mortgages for residents of most EU countries (including the UK), along with citizens of the United States, Hong Kong, Singapore, Japan, the UAE, South Africa, Switzerland, as well as most South East Asian countries. Other nationalities can be considered on a case-by-case basis. Any non-Resident (with certain exemptions ) seeking to buy property in Australia must obtain permission from the Foreign Investment Review Board (http://www.firb.gov.au) prior to entering into a contract. It's a simple process that usually takes under three weeks. As a Non-Australian Resident, you can only to buy an investment property in your name - not in the name of your company.

Fees and Taxes:

Mortgage Arrangement or Application Fee : 0.5% (UK Lender) 0.5 -1.5% (Australian Lender)

Valuation and Legal Fees as in the UK. Stamp Duty is also chargeable according to state, with investment property being taxed at a higher rate. Early repayment charges will also be levied, typically in years 1-4 of a mortgage, these vary according to lender.