We have some equity in a property in NZ, which we owned before we came to Australia 5 years ago and prefer not to sell. We need advice on which mortgage lenders will consider using overseas property as collateral for a 100% loan, and whether this would cancel any chance of a FHOG as we have never owned property of any sort in Australia.
Hi Wendy
Have you considered 80% finance with an Australian lending institution and the remaining 20% via an equity loan with an NZ lender.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
[/font=Arial]Not really – we don’t have 20% deposit but we have property worth around $240,000+ with mortgage of about $158,000 giving us around $80,000 equity – probably enough for 15% equity in two properties of similar value, or maybe 20%/10% split.
Not sure how the 20% equity loan from an NZ lender would work. Would we have to refinance to achieve this end?
Hi Wendy,
Basically you would be borrowing 100% of the purchase price on the Australian property using finance from 2 separate lenders,
E.g., Current NZ property Value $240.000 @ 80% = $192.000 less Balance owing $158.000 = available equity $34.000
The $34.000 is now available to use as a 20%, 10%, or 5% deposit for finance with an Australian lender of 80% 90% or 95% on the new purchase, I hope this helps.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
What is the advantage of going for an 80% + 20% equity loan option as opposed to 100% from the same lender? Is it not possible to borrow 100% using overseas property as collateral? I presume it would limit the number of lenders who would consider the option.
Also, as we have never owned property in Australia, would we still be eligible for the FHOG or would it be negated by going with any link to NZ property
Wendy Weightman
ABN 48 725 723 909
Freelance & Virtual Assistant SecretaryYou will struggle to find an Australian lending institution who will take NZ property as security for finance on an Australian property purchase.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Wendy
No doubt Steven will correct me if i am wrong but you might like to try Tonto they used to take NZ property as security.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
