Migrating to Australia?

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

In short you are always best to apply for your loan while you are still in your current position.

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 migrants overlook two critical points..

First,they usually only start to look and think about property after they get their approval. 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.

Second, and possibly of more important, and is the issue you have raised, 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.

Many migrants overlook 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 Australia, even without an immediate job.

The key in everything is to try and plan as far in advance as possible to ensure the smoothest transition to Australia.

IN SUMMARY , WHAT ARE WE SAYING?

IT'S SIMPLE.

1.We are simply saying that we really believe that  if you are migrating, it is very important in most cases, to organise a loan preapproval for you NOW.  And you really should go to Australia straight away, and buy the house you will move into. (Rent it out until you arrive.)

2.This will give you tax relief, as well as enable you to get your loan in advance.

3.If this is not possible, the next best option is to get a LOAN PRE-APPROVAL before about a month before you go,as these usually last about three months.

Then, you'd need to find the house within 2 months of arriving.

4.If none of these options suit, then there is a risk you will not be able to get a loan when you arrive.

Finally, a very rough guide is you can borrow 4 to 5 times your gross income. Of course, this is subject to debt levels, and your own finacial position.

There are loan brokers that specialise in overseas migrants arriving. Fill in the form below to be put in touch with a specilaist broker. 

(Also see our Frequently Asked Questions about investing in Australian Property.)