Migrating to Australia?

"I am Moving to Australia, When Should I Organize my Home Loan?"

This is a common question for many people migrating to Australia.

Our experience is that most migrants get this completely wrong.

Whether the loan is for an investment property or your intended home, banks will be more favourable if you are still gainfully employed and in a position held for many years.

The Australian Bureau of statistics reveals that most new migrants try to buy a home to live in WITHIN the first 12 months of arrival in Australia. This is completely logical and understandable.

However, many, if not most, new migrants overlook, two critical points.

First, they usually only start looking for property after they obtain their approval to migrate. This is completely understandable. However, it would be wise to start all your planning IN ADVANCE, so that when your approval comes through, you are ready to make your move. There are several very sound reasons for this.

First,it may take you 6 months to do your research, plan a trip , look at properties, tax, finance etc. That is 6 critical months lost forever. Both for your mortgage, but importantly, for your tax planning.

The sooner you have an investment property before arriving in Australia, the lower will be your tax rate. Many new migrants buy an investment property also within 2 years of arriving, but have to pay the full rate of tax for the first 2 years.

Second, and possibly of more importance, is your potential to obtain a mortgage. Unless you have a secure job already planned for your arrival, there is a real RISK you will not actually get a mortgage.

Not withstanding that you may have an intention to relocate at some future date, unless you have actually resigned formally, you should get your finance in order well prior to departure.

THIS IS CRITICAL, WE BELIEVE. WE HAVE SEEN MANY NEW MIGRANTS OVER LOOK THIS.

They assume, often wrongly, that because they have been employed for 10, 15 or 20 years, somewhere else, they will automatically get a loan in Austraia, even without an immediate job!

All banks like the security of employmentto assure them of ability to repay the loan, and their approval process will be much harder once you arrive in Australia to a new job or no job at all.

Also the shift to an Australian based income may also impact the size of loan you will qualify for.

The key in everything is to try and plan as far in advance as possible to ensure the smoothest transition to Australia. If you would like to obtain a FREE loan assesment and preapproval fill out the form below...