Intro
Interest rates in Australia are quite high with the current bank
lending rate at 7.25% meaning mortgages are quite expensive. Some
banks are now willing to lend to non residents in different
currencies including Swiss francs. If you do decide to take a
mortgage in another currency applicants should be aware of the pros
and cons – even though your mortgage rate maybe lower, currency
fluctuations leave you paying back more than you borrowed
originally.
Availability
Mortgages are available to non residents at up to 70% LTV over a
term of 30 years. Interest only and repayment basis are available.
Rates currently range from just under 9% in AUD but can be as low
as 4% if the mortgage is taken in USD or CHF. If taking a mortgage
in a currency other than the one you receive your rental and
employed income in, make sure that you seek advice.
Cost
Mortgage arrangement fees can vary from lender to lender and if
you decide to use a broker there may be additional costs incurred.
Typically applicants will pay a fee around 2% of their agreed
mortgage.
Application Process
Once your application has been submitted to the bank it will
take approximately 4 – 6 weeks to check all your documents and
carry out a valuation. To save time it is advised that your
solicitors get in contact with the bank at the earliest
opportunity.
Mortgage Finance from Frontiers Financial Services
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