A Foreigner’s Guide to Getting a Mortgage in Australia

Australia is one of the most picturesque paradises on the planet. Nowhere else can you find such a diverse biome of wildlife, both mammal and insect. Explore beautiful reefs and stunning white-sand beaches. Catch the most immense waves and enjoying a hearty BBQ right after.

The people of Australia are welcoming, kind, and strong-willed. They hold their countries’ culture close to their hearts and celebrate with pride all the things that make Australia so special. It is no wonder people from all over the world vision Australia as the perfect place to live. And the biggest reason of all. The sun.

Australia is one of the sunniest places on the planet. They have countless towns and states named after it. But for all its sunshine, Australia is also one of the stricter countries when it comes to immigration. So how does one go about moving to Australia? And more specifically, how does one get a mortgage while out there? This guide is going to give you all the information you need to secure your mortgage in Australia, from the perspective of someone who immigrated themselves.


The Immigration Process

We can’t talk about getting a mortgage in Australia without taking a quick look at the immigration process itself. Some countries are quick lax about their immigration processes. Australia isn’t. They operate on a strict, points-based system that is designed to limit how many people enter the country permanently.

The first step is to make sure you have researched employment opportunities. This is a big one. You need to be able to prove to the immigration officials that you have done significant research into finding a job and you have the skills and experience to actually secure a job while out there.

You also need to start looking for a place to live. This doesn’t mean you need to put down any deposits or know for certain exactly where you will be living. But you should have a good idea of the state and city and have done enough prior research to be able to prove you are seriously looking into it.

Then, you need to apply to the visa office. You can opt to get a visa nomination that allows a business or organization to vouch for your application giving you a better chance of getting approved. But, chances are that if you followed all the rules and guidelines you will get accepted.

The next step is to actually move out there and settle in. Which leads us to the big question. How can you get a mortgage to actually buy your own home?


Getting a Mortgage

In the UK and USA, the Mortgage process has been streamlined. These countries are very much capitalist societies are their fullest. So they have made sure any system of banks making money is at its best. This isn’t the case in Australia.

The Mortgage Process isn’t as tight as it is over in the UK or the USA. The process takes a lot longer and requires a significant amount of documentation. And this is particularly true form immigrants to Australia.

But, as an immigrant to the country, there is a set criterion you need to meet to get approved. We spoke to blutin mortgage advisors to find out exactly what this criterion is and some tips to help you prepare.


The Criteria

The biggest two are serviceability and employment.

Serviceability is your ability to repay your mortgage. It is worked out by looking at factors such as your current savings, your income (Or expected income if you have yet to start work), and also they will look at your history of debt repayment, such as previous mortgages. If you fail at this step to prove you can adequately repay the mortgage, chances are you won’t get approved.

Employment is simple. You need to prove to the bank you are employed, going to be employed, or are looking for work. If you are looking for work, you will need to prove you are qualified for the jobs you are applying for and prove you stand a good chance of getting them.

Of course, these aren’t the only two factors considered.

There is also the matter of security. This essentially means how much value the property you are looking at has in terms of resale value. This is important to the bank as they need to know that if you fail to make payments on the property, they can recoup their losses by selling the property.

You need to make sure your visa status is also properly sorted and all the relevant documentation can be produced. And it is vital you have done this step correctly. If you have the incorrect visa type you could be denied your mortgage right out of the gate.


Helpful Tips

There are a lot of things you can do in preparation for both your move to Australia and before you apply for a mortgage to make extra certain you will be approved.

First, make sure you have no outstanding debts that could seriously hinder your chances. If you have excessive loans to pay off, we recommend sorting that before you consider immigrating.

Secondly, keep good relations with your real estate agents and banker. It never hurts to be polite, inquisitive, and ask the right questions. But make sure you also do your research. If you are clued up on everything they will respond to you in a more positive manner.


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