Our experienced and professional lending manager suggests the most suitable product for our clients basing on their backgrounds and needs. We provide FREE services to you no matter you are a first home buyer, property investor or home constructors. You will get your loan granted in the shortest period from us.
Application procedures for home loan in Australia
Step 1: Communicate with broker, elaborating your backgrounds and needs.
Step 2: Confirming you borrowing capacity. Select the most suitable loan product and bank.
Step 3: Documents collection. Submit to the bank and wait for conditional approval.
Step 4: Information verification from bank.
Step 5: Property valuation from bank. Evaluator reports to the bank.
Step 6: Unconditional approval. Signing loan documents.
Step 7: Confirming settlement between the bank and your solicitor. Effective home loan.
Documents for application of home loan in Australia (Owner Occupied/Investment)
Identity: Government ID (Passport, Photo ID, Driver License, Birth Certificate, Marriage Certificate or Medical Card)
Salary: Salary slip, employment letter Self-employed: tax form, tax clearance certificate
Rental income: Lease agreement or rental appraisal letter
Asset: Bank deposit Liability: Loan account, Credit card, Personal loan, car loan, student loan
Property: purchase contract, information of solicitor and property transfer information
*For a more detailed document list, you are welcomed to call our brokers on 02 8282 0282
Refinance is typically new loans with a lower rate of interest. The new loan could be contracted with the original bank or with a new one. Some reasons that attribute to a refinance could be as follows: interest rate of the original bank is too high, additional fees are expensive, unsatisfactory services and having difficulties in applying for a new loan from the original bank for a new property.
Fees to banks and government occur when the new bank pays off the loans to the original bank after the refinance loan has been approved. Most of the banks afford it. You may increase your loan amount, switch loan products and loan period during your refinance process if needed.
Pros of Refinancing
1. New bank provides better rates. You save more in a long term, which covers the fees you need when refinancing. Investors are provided with more choices with lower interest rates and higher loan amounts. A lower loan interest means that you pay less to the bank. A higher loan amount means a larger capital get from the bank. This is what a smart investor should consider.
2. Multiple valuations provide you more choices. Investor gets a larger loan from the bank that offers the highest valuation to the property. By comparisons, you may better understand the market value of your property. More flexible when repaying your principal and interests to the bank. It is the best option for investors who pay interests only because it ensures that they are able to re-invest wit
Cons of Refinancing
1. Fines apply due to early termination of contract with the original bank. ‘
2. Fees apply when re-apply with another bank include application fee and processing fee.
All in all, a property is more valuable by refinance than top up. Of course, selling the property would be to the best value of it.
In Australia, most of the first home buyers are eligible for some allowance, especially for those who buy a off-plan property. First home allowance varies from state to state in Australia.
1. Australian citizen or permanent resident
2. Buyer has not purchased any properties in Australia previously
3. Must be a new-established property
4. Cannot be under the name of a company
5. Must live in the house for 6 months consecutively in the first year of purchase
6. Must apply within 12 months after transaction
7. Applicant can only apply once for one property
What is stamp duty reduction policy?
Many new immigrants are aware of first home buyer allowance. Policies update every year. Stamp duty reduction is one of them.
Personal loan can be used in car purchasing, house renovation, travel or even repayment to home loans and business loans. Repayment period for personal loans ranges between 1 year to 5 years.
Personal loan amount
Personal loan amount ranges from $1000 to $50000 depending on debtor’s credit history, salaries and bank policies. Better credit history and higher salary, borrower can borrow higher amount.
1. Australia citizen or permanent resident.
2. Australia local income (no overseas income allowed for personal loans)
3. ID (Passport and Driver’s licence/Medicare)
4. Two friends and their contacts
5. Residential address in the past three years
Car loan is one of personal loans. It can be used in new car purchase or second-hand car purchase. Least loan amount is $7500. Repayment period ranges from 12 months to 7 years. Repayment method: Principal and interest. Fixed rate or variable rate.
Generally, interest rate for private car loan varies a lot from banks to banks depending on different conditions. It can be as low as 5%, or it may be as high as 21%. Some of the interest in car loan can be tax deductible in some cases.
The car can be used as a public car or a private car. You may deduct interest on a loan for a car you use in your business. You can deduct only the business use percentage of interest and taxes on a car you use for business and personal reasons.
Generally, Australian citizen, permanent resident and some working visa holders (eg. 457, 188) are eligible to apply for a car loan. Student visa or any bridging visa holders are not allowed to apply for a car loan.
Unlike home loans, car loans do not require a pre-approval. Car loans could be approved within one business day.
A construction home loan is a type of home loan designed for people who are building a home as opposed to buying an established property. It has a different loan structure to home loans designed for people buying an existing home.
How does it work?
A construction loan most commonly has a progressive drawn-down. That is, you draw down the loan (or increase your borrowing) as needed to pay for the construction progress payments. The amount available to borrow will be partly based on the value of the property upon completion of the construction.
A construction loan will usually be interest only over the first 12 months and then revert to a standard principal and interest loan. Once a construction loan has been approved and the construction of the property is underway, lenders will make progress payments throughout the stages of construction.
Generally, the payments will be made at upon completion of five stages:
(1) Slab down or base: This is an amount to help you lay the foundation of your property. It covers the levelling off the ground, as well as the plumbing and waterproofing of your foundation.
(2) Frame stage: This is an amount to help you build the frame of your property. It covers partial brickwork, the roofing, trusses, and windows.
(3) Lockup: This is an amount to help you put up the external walls and put in windows and doors (hence the term ‘lockup’, to make sure your house is lockable).
(4) Fitout or fixing: This is an amount to help you do the internal fittings and fixtures of your property. It covers plasterboards, the part-installation of cupboards and benches, plumbing, electricity, and gutters.
(5) Completion: This is an amount for the conclusion of contracted items (e.g. builders, equipment), as well as any finishing touches such as plumbing, electricity, and overall cleaning.
Application process of a construction loan:
1. Documents preparation and application Same as other home loans, to apply for a construction loan, applicant should provide personal identification documents and pay slip. In addition, to apply for a construction loan, you must provide following related documents: – Council approved plans and specifications – Signed & dated building contract – Builder's civil construction insurance and work injury insurance
2. Bank approval Bank reviews documents after the application. Meanwhile, bank will send an appraiser to evaluate the property basing on the construction contract.
3. Loans settled Before progress payment is made, loan applicant should provide withdrawal application and receipt to the bank. The bank will pay the builder once requirements are met.
Advantages of construction loan:
1. To save stamp duty. Stamp duty is calculated on the value of land for housing construction. House itself is not included in stamp duty calculation. While for an existing home, stamp duty is calculated on property value.
2. More options and more flexible.
3. Starting date and completion date can be discussed with builder.
4. Progress payment allows the borrower to pay interest for each specific stage.
Commercial loan includes loans on acquiring businesses, operations or business properties. Borrower could be the business owner and those who invest in business properties for investments or business operation. It may also be applied on office clerks who use the loan to invest. Business loan is similar to home loans, but they vary in loan-to-value ratio, interest rates and income levels.
Commercial property loan:
Commercial property loan is the same as home loans. It concerns about debtor’s credit, mortgage, loan documents, loan valuation, loan contract and loan management. However, commercial property loan is related to business operation, making it more complicated. Professional assistance is required. Mortgage property could be factory/warehouse, retail shops, commercial buildings, unit building (with more than 4 units), and kindergarten. Once the loan institute is interested with the loan proposal, you may apply.
Pros of commercial loans:
Reasonable Tax Avoidance: Commercial loans can be an effective way to avoid tax reasonably. Interests expense from commercial loans can be counted as operation expense. Depreciation of property and car for commercial use can be tax deductible.
Risk sharing: Banks are willing to lend you money for doing business or business expansion. You may see this as a risk sharing from banks. Commercial loans vary from person to person as it depends on your own situation. We suggest you consult professional mortgage companies for a detailed loan proposal before borrowing money from the bank.
Application conditions for commercial loans:
Permanent Residents, business visa holder and some Temporary Residents are eligible to apply. For more details, please contact our professional brokers for a further explanation.
Enjoy the lifestyle you want now and in the future. Spend more time with your family, discover new hobbies, or unwind in your holiday home. Anson Financial Advisers can develop a tailored financial plan to help you get there.
You may get a free valuation from our professional brokers via the information you provided on our website. Alternatively, you may call us directly. We look forward for your call.