FISCUS MORTGAGES - INFORMATION AND ADVICE

How Much Can I borrow

Proposed Steps for purchasing a property in Australia.

a) Locate desired property – PLEASE NOTE THAT IN THE MAJORITY OF CASES FOREIGN INVESTMENT REVIEW BOARD (FIRB) APPROVAL MUST BE GRANTED FOR ALL NON-AUSTRALIAN NATIONALS ON ALL TYPES OF PROPERTY.

b) Apply for FIRB approval (see point 1 below)

c) Apply for 'Agreement in Principle' from lender

d) Once FIRB approval obtained enter into the contract to purchase your property making sure that this is subject to obtaining suitable finance/ satisfactory lender's valuation.

Essential notes for purchasing a property in Australia

1) To obtain FIRB approval either consult with your Australian Lawyer or visit website www.firb.gov.au to obtain the appropriate application forms which, once fully completed, must be faxed to 00 612 6263 2940 or posted to: -

The Executive Member
Foreign Investment Review Board
The Treasury
Langton Crescent
PARKES ACT 2600
Australia

2) Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to the Australian legal and administration system.

3) Check with the estate agent/lawyer that you are aware of the costs charged by the legal & government authorities for purchasing a Australian property, noting that the lender will have their own legal costs for assigning the loan (the cost of which they will normally advise when they issue the mortgage offer).

4) It is essential that you take the appropriate independent legal advice if purchasing a new property as would be expected if you were purchasing in the UK.

5) It is essential that you take the appropriate independent legal advice before signing the sales contract or paying a deposit, if purchasing a foreign property, as would be expected if you were purchasing in your own country. The bank will require a copy of this document to be forwarded with the relevant application form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding.

6) Please be aware that the Lawyer/Notary may be incorporating within his charges, costs for assigning the mortgage and you should establish with the Lawyer/Notary the actual cost before proceeding with a loan application.

7) All mortgages should have a suitable life assurance policy assigned to them. It is not mandatory but strongly advisable

How much can I borrow & what proof of income is required?

Advice - Australian Mortgages

Please note, that there no non-status/self-certification mortgage facilities available in Australia (although renting out your property is permitted), all loans need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last three month's payslips & copies of your latest P60/Employer’s Reference together with copies of your last 6 month’s Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last two years Audited Accounts & copies of both your last 12 month's Business and last 6 month’s Personal Bank Statements will be required on application.

Australian Lenders will also take approx. 70% of the gross Rental Income into consideration towards the cost of the mortgage purposes/repayments.

Your loan is based on your joint gross monthly pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (ie: Divorce) payments together with your proposed Australian mortgage payments must not exceed 35% of your gross monthly income.

Example:

Gross joint monthly income £ 2,500 times 35% of that figure is £ 875 minus existing monthly mortgage payment £ 300 – No other liabilities. This leaves a balance of £575 for a proposed Australian Mortgage payment.