Home Loan Scenarios for Immigrants with No Guarantor

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  GangGang on 11/02/2019 - 16:05

  +3

  I would just head into a bank or a mortgage broker & see what they say. Go for a broker first, it's so simple & you will get your answer from a professional.

  • 

    bargainhunter87 on 11/02/2019 - 17:14

    Lucky Royal Commission recommendations have not yet been implemented - otherwise they may be asking for a fee!

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  CyberMurning on 11/02/2019 - 16:06

  "I understand you have to have 20% deposit saved up or have a guarantor."
  hmm i think if you cant provide 20 then just pay some insurance:

  read these
  https://www.anz.com.au/personal/home-loans/first-home-buyer/…
  https://www.canstar.com.au/home-loans/lenders-mortgage-insur…

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  jjjaar on 11/02/2019 - 16:10

  +1

  Depends how much you actually have saved. As ChiMot says, you can pay an insurance if you don’t have 20%, but many banks will still want at least 10-15%.

  Some will still loan if you only have 5%, but the insurance will be significantly higher as a percentage of the loan amount.

  If you want to do a google, the insurance is called Lenders Mortgage Insurance, or LMI for short. And it’s basically the bank insuring themselves in the event you can’t pay off your loan.

  • 

    jjjaar on 11/02/2019 - 17:41

    Edit: my advice on the 5% is based on before the royal commission. As others have said below, it’s not likely now.

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  [Deactivated] on 11/02/2019 - 16:14

  +3

  The market is slow because the rules have just become more rigid because of the recent bank scandals.

  They're NOT going to give you a loan with 5% downpayment. Heck, that's not even enough for a standard deposit.

  You need at least 10% for down payment before you even bothering with the property market, much less application for loan.

  The personal loan will jeopardise your position for a loan entirely.

• 

  HighAndDry on 11/02/2019 - 16:14

  Have you ever seen/heard of anyone getting approved with just a 5% deposit and no guarantor?

  Most banks will loan 80% of a property's value. Some will go up to 85% or 90%, if your financials are good enough and you pay for mortgage insurance (this protects the bank, not you). I have very rarely seen banks loan 95%, and even that was during the good old pre-Royal Commission days when banks and brokers were going bonkers with lending. Speak to a broker, but don't get your hopes up.

  • 

    dcep on 11/02/2019 - 16:57

    +1

    ohh yes, 95% was plenty easy before the RC

    my colleague borrowed 95% and not enough for LMI, so the bank even lent him more by capitalised the LMI within loan, LVR effectively over 97-98%.

    that's big bank westpac whose books flooded with 60% are homeloans

• 

  dasher86 on 11/02/2019 - 16:14

  +2

  My advice is at your 'after tax' salary you are better off renting until you can afford something better than a $200k apartment.
  You'll outgrow the apartment pretty quick and will want to sell it. In general (and I mean in general) apartment prices don't rise that much and will cost more in fees to sell it.

  • 

    [Deactivated] on 11/02/2019 - 16:17

    +3

    Maybe Opal Tower?

  • 

    HighAndDry on 11/02/2019 - 16:26

    Unless OP is on one of those new (are they in force yet?) rural placement Visas that forces them to live out in the country for like 7 years after immigrating to Australia…

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  CyberMurning on 11/02/2019 - 16:25

  +2

  I am on 85k after tax salary.

  gosh so jealous. if you really serious, save hard like half of it in a year, and you get 200k in just 3 years maybe less.
  drop the iphone, macbook, cinemas, overseas travels and drinks. super easy.

  • 

    J4Jayden on 11/02/2019 - 16:35

    This is a fair advice. I really need to cut down on my expenses. Cut down now, enjoy later!

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  J4Jayden on 11/02/2019 - 16:26

  Great advice from everyone.

  I think the next logical step is to contact a Mortgage Broker for my options + try to save more for my deposit.

  Thanks everyone. I was contemplating my choices and it makes sense that the market is slow but also due to the royal commission, an approval will be much harder.

• 

  Bonbi on 11/02/2019 - 16:29

  +1

  $85k after tax is roughly $130k pre.

  Why would you want to live in a crappy studio an hour away from the city? (Unless your job is also there). Rent for a year or two and save up for a decent apartment as others have suggested.

  • 

    J4Jayden on 11/02/2019 - 16:35

    I work in the CBD, so thought that made sense.

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  FloatingPoint on 11/02/2019 - 16:36

  95 LVR is very difficult these days even with owner occupied home loan.
  It shouldn't take you long to save another 10-20K if you have 85k after tax income and you will be a much better position.

  • 

    J4Jayden on 11/02/2019 - 16:37

    Thank you! The advice seems to resonate with everyone else here. I really should just get on saving.

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  [Deactivated] on 11/02/2019 - 16:40

  Your 5% deposit won't really even cover stamp duty and conveyancing so the bank would be at instant risk of you being underwater/negative equity from day one.

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  rambutann on 11/02/2019 - 16:57

  I recently tried to refinance a 1 bedroom unit with a yard which had about 25% of it paid off - and I had no luck..

  I am highly doubtful that you'll be able to get a loan with 5% on a 200k unit as these are generally ~40SQM with no balcony.

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  Changskies on 11/02/2019 - 18:39

  85k after tax, you should be able to save b/w 20-40k with moderate expenditure. Cut down on dinner outs and drinking!

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  davel on 11/02/2019 - 19:12

  You need 10% deposit usually plus stamp duty.
  Plus the fact that you are using it as a home loan not investment.
  Maybe if a broker can help you sign up as an investment after settlement call the bank tell them you wanna live in it.
  Also the other issue is that many banks aren't lending on small sized apartments and studios, and with house prices going south which bank would want to take your loan onto their books with the risk of default and negative recovery if they were to liquidate.

  Loans like these aren't good for a banks balance sheet and risk portfolio, just save the 20% or borrow it from a relative etc, have the 20% plus stamp and go the broker, don't go to a bank direct.