Chaleen Botha Chaleen Botha

Welcome to Australia, the land down under where new adventures await! Whether you’ve just arrived or are planning your move, navigating the financial landscape in a new country can be daunting. That’s where Stephan and Lana Roos, seasoned citizens and finance brokers, are here to guide you through the ins and outs of managing your finances in Australia. With over two decades of experience and a passion for sharing knowledge, they are dedicated to making your transition smoother. From understanding the importance of your credit score to demystifying the complexities of home and car finance, they have got you covered. So sit back, relax, and let them help you unlock the secrets to financial success in your new Aussie home. Welcome aboard!

Here are their best tips and tricks to help you:

The first thing is your credit score –

It is essential here, and applying for credit you don’t need or may not qualify for is a sure way to destroy your credit score, which can take years to recover. Don’t shop around for the best rates; let us do the research for you without affecting your Credit file. You also don’t need a Credit File to buy a house, so don’t worry about establishing creditworthiness, so to speak.

Asset position does not increase borrowing capacity here. While it may assist with giving the lender some comfort as to your position, capacity is a function of income, less expenditure. Some buffers are put in place to build contingency, which differs between lenders. So we can research your options from over 35 lenders to see which will suit your circumstances best, all in one place, and again, no effect on your Credit File.

You can buy a car, a home, or any asset, provided you can make the repayments while on a VISA, whether Permanent or Temporary.

As always, there are conditions.

For a Home or Business purchase on a temporary VISA, you will need Foreign Investment Review Board (FIRB) approval, and there is a fee. There may also be an additional 7% or 8% of the purchase price surcharge for Temporary VISA holders. The loan term is not dependent on the VISA term; however, you will need to sell the property if you no longer live in it or if you do not get a permanent VISA. For Car loans (Asset Finance) the term of the VISA restricts the term of the loan. Generally, 1 to 6 months less than the remaining VISA term can be considered. In most cases, you need to have been employed for three months before you can apply for asset finance.

We provide a fee-free service, so do reach out if you have any questions or want to apply for finance. We deal with over 35 lenders, including the major banks. We compare the products from these lenders and offer our clients multiple options to choose from without affecting credit scores.

You can find us online at https://www.mortgagechoice.com.au/lana.roos/ or on Facebook, Lana.Roos. MortgageChoice

Lana and Stephan Roos L: +61403 851 498 S: +61418 615 579

Car Finance:

Minimum requirements are as follows:

• Australian Driver Licence
• Three months’ Salary Credit in your Australian Bank Account
• Employment Contract

 Home Finance:

Minimum Requirements are as follows:

• Three months of employment (some exceptions apply).
• Monthly Living Expenses Breakdown
• 100 points of ID
• The minimum deposit is 5% of the purchase price, plus fees. Typically, any amount less than 20% of the Loan-to-Property-Value Ratio (LVR) means you have to pay the Lender’s Mortgage Insurance (LMI).

LVR is calculated as the amount of money you borrow as a percentage of the property’s value. The lower the LVR, the better the interest rates.

• LMI works on a sliding scale and protects the bank, not you. LMI can add thousands of dollars to a loan, but it is a way for you to enter the property market with a smaller deposit.

Some lenders waive LMI for Dentists, Optometrists, Physiotherapists, Vets, Accountants, Occupational Therapists, Most who work in Health care, Audiologists, Chiropractors, Osteopaths, Pharmacists, Podiatrists, Radiographers, Speech Pathologists, and more.

A 5% Cash Contribution on a $500 000 loan is roughly $45 000 – $25k deposit and another $20k for fees, as an estimate. The fees will be higher for temporary visa holders.

• There may be First Home Buyers Grants that could lower the purchase fees.

General Notes:

Lender policies change frequently. We receive weekly updates on these changes, so check with us first.

Some professions qualify for LMI discounts or waivers; these are typically Doctors, Lawyers, Accountants, Dentists, Optometrists, Physiotherapists, Vets, Occupational Therapists, those who work in Health care, Audiologists, Chiropractors, Osteopaths, Pharmacists, Podiatrists, Radiographers, Speech Pathologists, and more.

Sometimes, lenders will run a promotion where they waive or reduce the LMI fee. The best lender for you is the one that gives you the most money at the lowest interest rate, based on your circumstances. There is no point chasing the lowest rate when you won’t qualify for the loan.

THE GOLDEN NUGGET

Mortgage Brokers fall under BID – Best Interest Duty, meaning a Mortgage Broker has a legal obligation to provide you with a product that is in your best interest, unlike a bank. A bank can offer only its products, whereas a mortgage broker compares multiple products from multiple lenders to get you the best product that suits your needs. A bank will never tell you that the lender next door has a better offer.