Saturday, 18 November 2017

FAQ

  1. Why buy a house in Australia?
  2. Why borrow money?
  3. What is the difference when obtaining a home loan in Australia in comparison to Indonesia?
  4. Are there any hidden costs?
  5. Who is best to help me with my home loan?
  6. What documents do I need to bring when applying for a home loan?
  7. How long will it take to process?
  8. Can I sign the real estate contract before I get the loan approval if I'm quite sure that I'll get it?
  9. What steps are involved in buying a house?
  10. What role does IFS play in my buying a house?

Why buy a house in Australia?

  • Economy and politics is comparatively stable
  • In most areas, the real estate value of the last 10 years has grown by 100%
  • Better returns than buying shares, there is a big rental market in NSW, which can help pay the monthly installments

Why borrow money?

  • Save - You will only need 20% deposit, which allows you to build up your savings
  • Tax Benefit (Investment property only)- You can claim back your losses (including depreciation) from the government

What is the difference when obtaining a home loan in Australia in comparison to Indonesia?

  • In Australia, borrowers have the option to prepay the loan at any time they wish. For instance, if the borrowers initially indicated the bank that they will borrow the money over 30 years, they can decrease the loan term by increasing the repayments or simply prepay the entire loan. However, please note that some banks will charge a deferred establishment or penalty fees for early prepayments within 3 years. The fee ranges from AUD 700 to few thousands dollar depending on the bank and loan products.

Are there any hidden costs?

  • All costs will be fully explained before you sign the contract. The following costs are not hidden costs, but additional costs which will vary according to which bank you choose:
    • Application Fee including Valuation Fee $400 - $750
    • Account Keeping Fee $8 - $20 p.m.
    • Discharge Fee (approximately) $250
    • Variation Fee $150 - $250

Who is best to help me with my home loan?

  • Independent Mortgage Brokers - When a broker is not affiliated with any banks, they will give you the best deal on home loans, instead of trying to sell just the bank's products. Also, they won't sell you additional products which you don't need
  • Accreditation - If in doubt, ask to see their accreditation. Accreditations are given to brokers by the banks after the brokers have taken an exam to prove that they understand the bank's products. The broker with the more accreditation is most probably better.
  • ABN / A.C.N - To operate legally, any company in Australia must show their ABN. ABN and A.C.N means the company has registered with proper authorities. Be suspicious of companies that do not show their ABN or A.C.N.
  • MIAA accredited members. All members are bound by a strict code of ethics to ensure the highest levels of service, integrity and professionalism. IFS is an accredited full member of MIAA, our membership number is 400 916.

What documents do I need to bring when applying for a home loan?

  • Passport
  • Drivers License
  • 2 Credit Cards (overseas customers only)
  • Letter of Employment
  • Savings proof - both local and overseas accounts.
  • Proof of other income (if any)
  • Bank statement showing regular income (if your income goes into a local bank e.g. CBA, NBA, Westpac or St. George)
  • Personal tax return

How long will it take to process?

  • It can vary from 24 hours to 1 week. It all depends on the banks. Sometimes the bank may be very busy.

Can I sign the real estate contract before I get the loan approval if I'm quite sure that I'll get it?

  • No. Unforeseen problems may come up. The best and safest way is to only exchange contract after your loan has been approved.

What steps are involved in buying a house?

  • Contact IFS on +612 9264 9366 to see how much you can borrow
  • Find your house
  • Go to IFS with your documents and fill in the application form
  • Wait for the approval
  • Sign your real estate contract

What role does IFS play in my buying a house?

  • IFS helps you to
    • Calculate how much you can borrow
    • Calculate how long it will take to repay
    • Choose the best bank products without any bias
    • Explain in further detail anything else you need to know