Home Loans in Australia: A Foreigner’s Guide
Needless to say, having a home in Australia is like a dream come true. Whether you are planning to live in Australia or want to purchase home for investment or as a vacation home, Australia’s sunny shores are perfect. However, buying a new home in a new country can be a daunting process.
You need to understand different types of home loans in Australia to get one set up. Finding the best loan is not a calk walk and you should seek professional help for the same. Otherwise, you may have to face higher costs than local residents do.
How can non-residents apply for home loans in Australia? Below some of the things are given that expat buyers should consider:
Types of home loan
Usually, the expat buyers do not have access to such a broad range of home loan options. After exploring the loan market in Australia, you will come across numerous mortgage providers and products. However, you need to do prior research to decide between them.
First, decide which loan type you want to go for. There are generally two loan types available including – Fixed rate and Variable rate home loan. The same interest rate will be applied for the duration of the agreement in the fixed rate home loan. On the other hand, depending on how the interest rates change, variable rate mortgages can cost more or less.
Many lenders also offer a hybrid option for the borrowers, which include an introductory offer of a discounted variable rate, if borrowers qualified as a first time buyer in Australia.
Note: The first time buyers or those buying second property for buy-to-let will not be entitled to same offers.
Thus, to know the best offers for buying the home in Australia, you should get some specialist advice from a qualified financial advisor or mortgage broker.
Expat buyers wonder: broker or bank?
While applying for the home loan, you can get in touch with a mortgage broker or you can directly go to the chosen bank.
Not sure, what type of loan is best for you? As a foreign buyer, your options are limited and it becomes difficult to decide which loan type is best for you. In this case, take some expert advice from a professional mortgage broker.
To explore the different lender’s policies and offers, contacting a mortgage broker will be the best choice. You don’t have to spend much time doing the volume of research yourself to find the best deal for you.
The additional costs involved in arranging a home loan in Australia includes the administrative fees, legal fees, and additional foreigner’s stamp duty based on the property you are buying.