Hi all, I’m hoping someone here is able to point me in the right direction.
My wife and I own 2 properties, the details of which are as follows:
PPOR – Nakara, Northern Territory purchased in 2007 for $425,000
domain.com.au’s guide price is $505,000
$257,600 owed with repayments of $1,597 per month P&I + $10 fine because the interest only period on the loan associated with IP has expired.IP – Fernvale, Queensland purchased in 2011 for $375,000
domain.com.au’s guide price is $307,000
Currently between tenants but advertised for $330 per week
$80,500 owed (deposit drawn using equity in PPOR) with repayments of $534 per month P&I + $10 fine because the interest only period has expired.
$277,800 owed with with repayments of $1,682.32 per month P&IThe interest only periods on both loans associated with IP expired in 2016, we were living abroad at the time and it was not convenient to arrange new loans remotely. Since we have returned to Australia we have had 2 separate mortgage brokers assess our situation and both agreed that in the current lending environment, my salary of $89,000 (AU) would not be sufficient to allow us refinance and my wife’s income would also need to be considered. Both mortgage brokers encountered problems with lenders accepting documentation (bank statements, pay slips) written in Japanese with income being paid in Japanese Yen. Ultimately we have not been able to refinance and the costs we are currently paying are too high, we will be forced to sell the property if we can’t refinance soon.
Has anyone in this community had experience in applying for loans when part of the income is coming from foreign sources? Is anyone able to recommend a broker who is experienced in such matters?
Thanks in advance,
SeanHi Sean
We run our own Non Resident / Expat lending team so certainly familar with overseas income.
In saying that most lenders do shade overseas income.
Happy to get one of my team to consider the matter but would need more details if you wished to email me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thank you for your reply Richard, I will drop you a line.
Regards,
Seanforeign income can be tough to work with, especially when it’s in Japanese. Most banks either heavily discount non-AUD income or reject it unless it’s fully translated. We ran into the same issue and found that the key was getting a mortgage broker who specialises in expat or foreign income lending. They know exactly which lenders will accept overseas salaries, how to present the documents properly, and which banks are more flexible.
Also ask your broker about portfolio loans or debt restructuring, since you’ve got equity in your PPOR that could help cover the shortfall on your IP without needing to sell. The right mortgage broker can seriously change the outcome — just need someone who’s dealt with these scenarios before. Let me know if you want a referral.
Sean, that’s a difficult situation. Some lenders do accept foreign documents with translations, so you might want to look into specialized brokers who handle expat or foreign income cases. I hope everything works out soon.
Hi Sean,
Im a mortgage broker and look after a lot of the finance enquiries that comes through Property Investing and I have had a look at the numbers provided, and there is some additional information that I would need to tell you if servicing is evident or not.
Things like dependents and if you are currently renting or paying off another mortgage will obviously effect things.
The payslips being in a foreign language won’t be too much of an issues as some lenders have the ability to have documents verified so I think in this scenario, it may comes down to servicing not being evident.
If you would like to discuss further, my contact number is 0477 212 840 and my contact email is [email protected].
I look forward to hearing from you shortly.
Christopher Berry | Find A Better Rate Home Loans
https://findabetterrate.com.au
Email Me | Phone MeTaking the Hard Work of your home loan
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