Case Studies

2017 Australian bank institutions loan closing date during Christmas period

The current Australian housing market mortgage policy is tightening, and the auction clearance rate has remained below 60%, but it is also a good time for first-time home buyers to enter the market. For the first time buyers, it is almost a very important matter: Although the mortgage interest rate has risen, it is still at the lowest point in history. Sydney house prices have fallen slightly from June last year to now, a decline of 5.6%; Melbourne has fallen 3.5% from November last year % Speculators leave the market, and many investors wait and see because of policies and uncertainties. There is less competition. Many sellers expect more reasonable. The bank still prefers the first home buyers. Some uncompleted sales and resales may be available. My Home Loan may be used instead. You have prepared six questions that you might encounter and answered them according to the general situation. If you don’t like to read too much text, you can just read one sentence of our answer. Of course, the most convenient and safe way is to contact our professional loan broker. The ultimate loan guide is to give us a call. Our service is free of charge, but brings you unlimited value! How much deposit do I need? “It depends on how much the house is.” Generally speaking, buyers need at least 10-20% of the house price deposit plus 5% of other expenses reserves. For example, buying a property worth $ 500,000 means that you need at least $ 50,000 in savings deposits before applying for a home loan, plus $ 25,000 in other expenses. (If the applicant’s loan capacity is insufficient, then more deposits will need to be prepared) For borrowers with a loan ratio (LVR) of more than 90%, most, not all banks have a real savings requirement, that is to say The borrower’s account must have a deposit of 3 to 6 months totaling 5% of the house price. However, for first-time home buyers, if you have insufficient deposits, you may wish to turn your attention to uncompleted buildings instead of existing homes. You can lock the house with 5% or 10% of the house price and earn yourself 1-2 years to raise funds 8 years). […]

The first time home buyers look at it and read it in one breath, buying a house is no longer difficult!

n the past two weeks, I have clearly felt the “holiday” atmosphere. The processing speed of banks has begun to slow down. First, many employees have started holiday arrangements, but the atmosphere has driven people to work and also entered the festive atmosphere. There are two times a year when banks are most busy with transactions, Christmas and Easter. So in both time periods, banks will announce their cut off dates. For example, if you have to buy a property or transfer a loan and need to complete the transaction before Christmas 2017, then you must complete the corresponding process on the day specified by the bank you applied for, otherwise the bank cannot ensure a smooth transaction before Christmas. We take three recently sent banks as an example: St George Little Fire Dragon Bank Suncorp Little Sun Bank ANZ Little Blue Flower Bank Some other banks have not yet announced, but it is estimated that they will release their respective deadlines in the past week. Especially for customers who buy properties that are scheduled to be sold at the end of the year and customers who buy existing homes in November, you should take care of your time. Every year, there are customers who delay the transaction because they don’t notice it. I remember that there was no deal for Christmas, bank holidays, your lawyers ’house prices, and many seller or developer lawyers’ holidays. They all came back to work after January 15th … This delay would be a bit embarrassing.  

Why do I change my account to make the customer become principal and interest repayment

Did you know: a house with an indoor living area of ​​less than 50 square meters is only accepted by three banks, and pre-approval is not an approval

(1) A few years ago, we specially wrote an article to tell you “Benefits of Interest Only”. At that time, there was no difference between self-investment and principal and interest only interest loans. In order to be able to loosen cash flow, make full use of the flexibility of hedging accounts, and at the same time pave the way for future changes in investment tax benefits, we recommend that customers choose to pay only interest as much as possible. You can maximize your investment portfolio, even if many customers are first-time buyers, even if many people have only one property. (2) Real estate in Australia has grown for several years. With the rise in housing prices, the mortgage loans of various households have also grown rapidly, with a high debt to income ratio. (Australian household total debt and income ratio) (Australian household mortgage and income ratio) It is basically equivalent to the average Australian household earning $ 1 yuan while carrying a debt of $ 2 yuan, of which mortgages account for almost $ 1 yuan 4 gross. (3) One day ASIC believes that this is irresponsible to consumers. The main reason is that when recommending to loan customers to only pay interest, they did not understand the risks. The most important thing is that after the deadline for paying interest only, The customer’s loan repayment will become very high, which may cause problems in the customer’s repayment pressure. It is also easy to understand, for example, if the loan interest rate of 500,000 is unchanged, after only 5 years of interest repayment, because the principal is not reduced, then only after the interest repayment period, the loan becomes the principal and interest repayment interest rate. The equivalent of a $ 500,000 loan will be paid off at a 5% interest rate in 25 years. Compared to 30 years of paying off, of course, the monthly supply pressure will increase. But in fact, if you read the “Why I choose to only pay interest loans” we wrote before, you will understand that only paying interest does not mean that you can’t repay the principal. In addition, Australian loans can have hedging accounts, which means that every The principal in the original principal and interest repayment in a month can be “saved” and deposited in a hedging account to achieve the same “repayment” (hedging) principal. The essential difference is that the principal amount has not actually been reduced, but the hedged principal can reduce the same interest, so there will be a pavement for the negative tax deduction of the investment house in the future, and at the same time keep its liquidity in the hedge account. . (4) However, through the supervision of banks by APRA, the interest rate on principal and interest repayment is lowered, and only the interest repayment rate is continuously raised. Many customers mentioned to us that at the beginning of the year they were still looking at 3.8% interest. How could this be 4.5%? Yes. Interest rates have risen. The interest-only rate has been raised three or four times. At present, most banks only pay interest rates of 4.5% or above, and even have invested in houses 5. More than 2%, of course, there are several non-bank institutions that still have more preferential activities. The interest rate on the market for principal and interest repayment and interest-only interest rate can almost be up to 0.9% […]

(Photo source: SMH) A news yesterday: A first-time home buyer applied for a loan from the National Australia Bank (NAB) for an apartment he bought in St Kilda (Melbourne). However, because the bank thought the house was too small to recover the loan at the last minute, he lost a down payment of AUD 41,000. The following screenshot of the news source from “Australian Finance News”: After reading this news, we think it is actually very interesting, of course, I have deep sympathy for the brother and family who lost the down payment. I also thank the news report for similar things, because it can also make headlines by losing 40,000 Australian dollars. Think about how many Chinese investment customers have lost 100,000 or 100,000 due to bank policy adjustments. There is no one regulation. Stamp tax and FIRB fees have increased by tens of thousands Can the Chinese digest it like this? But we thank the news report for a simpler reason, because these are the consequences of asymmetric consumer information in the ordinary housing market. If the younger brother is a My Home Loan customer, he should be able to avoid losing the deposit (of course we also have to review his personal loan repayment ability). Why do you say this? From this news, we draw two things that buyers should know: (1) Properties that have an indoor living area of ​​less than 50 square meters are rarely accepted by banks. Bank policy of less than 50 square meters of property is usually acceptable to CBA, Westpac and ANZ. Among them, ANZ may be based on 60%, and CBA may consider appropriations up to 90%. But once the area is less than 40 square meters, basically only CBA and ANZ can be considered. CBA can still receive 80% normally. As for other funds and small banks, almost all are case by case. We are not very likely to recommend. […]

NAB's latest overseas income loan policy interpretation in June, and a summary analysis of various customer loan programs recently

Recent loan case sharing: for friends who will invest in real estate in 2016/2017

(1) The policy of overseas income loans has been tightened for a period of time, from additional requirements in the initial submission of materials, to tightening of the approval policy in the later period, and then to reducing the loan ratio, all the way to now there is only one bank and a few The status of financial institutions accepting applications, the market has basically accepted this fact. But when many friends always talk about overseas income loans, there will be a series of questions: “It is said that the default rate of overseas customers’ repayment is very low, and the bank only borrows about 70%. There is no risk and no profit is lost. Why is it so tight How should so many overseas investment clients buy flats and what should they do? This will not seriously affect Chinese people investing in Australian real estate. Does the Australian economy still need to develop? “It does seem to be a contradictory issue. Banks want to make money but tighten it With a loan policy, the government wants to develop the economy but it also discourages overseas investment. Everything has priority. Facing a general election this year, voters have a high voice for investigating banks. A few months ago, the Labor Party again expressed the need to establish a royal commission to focus on investing in the wealth department of the bank. The wealth here is not a mortgage department, but involves pensions, investment and wealth management. The Liberal Party here requires ASIC and APRA to conduct investigations and rectifications on banks, mainly in the business of the loan department, which includes some regulations and commissions in the brokerage industry. If the Labour Party comes to power, the bank fears that the most profitable Wealth department will be forced to sell or be greatly discounted by large adjustment profits. Therefore, they are more inclined to let ASIC and APRA investigate them and make some corrections under their supervision. This is why we have seen that banks have tightened investment housing loans under APRA requirements from last year to now. ASIC’s investigation stopped some irregular bank employees and loan brokers from engaging in credit-related work. The policy of continuously tightening overseas income loans is also introduced in this large environment. For short-term, banks should deal with government supervision, even if they are closed to do business; but if the voters elect the Labour Party to come to power, the Royal Commission of Inquiry will intervene in the Wealth department to investigate. Trouble. (2) Last Friday, NAB, as the last bank that has not officially announced the cessation of overseas income loans, announced that starting from this Monday (June 20), pure overseas investment customers need to have existing investment housing rental income or Only 60 days of NAB deposit interest income combined with overseas income can submit an application. The only overseas income is no longer accepted. For many friends NAB, BOC (Bank of China) and other banks will say when they will be closed. We do n’t think it will be too long. We have written similar views before. Very simple. Under APRA requirements, the annual growth rate of investment housing loans of banks does not exceed 10 %, You think about a large number of overseas income customers coming over, and this ratio will soon be reached, hoping to continue to open from an official point of view can only be “supported” by more local self-financing loans, that is to say, every submission Approval of an overseas income client may require at least four or five local self-housing clients to settle, in order to limit the total proportion of investment housing loans to grow too fast. Non-bank institutions and funds in this area are not subject to APRA regulation for the growth of investment housing loans, so they will not be under much pressure. June 22, 2016 […]

Foreword About some risks and considerations that can be taken into account in real estate investment, we have written many articles from the perspective of loans. You can click here to read “Investment Loan” and “Real Estate Investment”. Last week, I also organized the three content of June last year on WeChat platform and shared about “whether there is a bubble in the Australian housing market” and “what should be paid attention to in the investment housing market”. Observe the market more three-dimensionally from a side perspective, provide investors with some reference perspectives, and make some judgments based on their own situation. That must have been a year ago. Many of the forecasts mentioned at that time have become current policies. For example, the bank material requirements mentioned will become stricter, and banks are expected to limit value-added transfers or cash out limits for banks to increase loans. We have listed some of the cases that we have encountered recently, most of which are the real situation of customers who have encountered “difficulties”. Sharing with other friends to avoid the same problem in advance. Case sharing (1) If you are buying a residential or existing home with a student visa, 485 temporary graduation visa (PSW) or bridge visa, etc., do not consider whether the consultation can be a loan. Please arrange to change the name of the purchase contract immediately. There should be no bank or institution that can accept the application. In addition to Prime lending, loans are secured through commercial guarantees, but the interest will be very high. If you are not sure whether your visa bank accepts it, here is a list of Westpac’s visas for reference. (2) Pre-completed properties are expected to be completed in the next three months, and customers who wish to avoid policy changes to apply for loans in advance. Regardless of whether you are an overseas customer or not, if the house has not received a notice from the developer, you can arrange a bank for evaluation. Even if you submit the loan, you will not get unconditional approval. This is mainly reflected in the fact that many overseas customers rushed to submit NAB applications for the 80% loan ratio before April 9 last week. There may be many customers who need to reprocess the application in the background because of the valuation or any loan application material supplement, so as to approve the payment in accordance with the policy after the 9th. (3) House land package, customers who buy land and build houses. Because of the approval of the builder or the city hall or other factors, the land was already settled at the time when the bank policy changed, and the construction loan could not be continued at the original bank when the construction was required to start. First of all, it seems that many friends are still unclear. Land and construction loans need to be processed in the same bank. Many people think that the land transaction can not continue with the same bank. Then change another bank to borrow construction money. This is not possible, the mortgaged land and buildings need to be in the same bank. Secondly, whether you choose to submit a construction loan when applying for land loans, and find a professional loan broker who understands the construction loan process and details. There are many details involved in construction loans, and it may affect the entire loan without being noticed in one place. Many friends in the market are not sure what is going on. (4) Some friends think that if there is no settle in the end, the big deal will lose a 10% deposit. Please note that if the flat you purchase fails to complete the delivery within the delivery date specified by the developer: From the delivery date, the developer will give a maximum of 14 additional days penalty period, your contract will have How much interest is written for penalty interest, usually 10% -15% annual interest is calculated at 90% of the house price (house price minus the deposit paid) […]