Do I Qualify
Eligibility and criteria
- Loans can typically be arranged in AUS Dollars; however other currencies may be available where your income is paid in that currency
- Repayment and Interest only loans are available
- The maximum loan to value for a purchase or remortgage is 80%; however up to 95% may be available for Australian citizens living abroad.
- The maximum term is 30 years.
- The minimum loan amount is AUS$100,000 (or currency equivalent) with no maximum
- Generally all loans require full documentary evidence of income – ‘self-cert’ mortgages are typically not available.
To qualify for a mortgage in Australia, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete our enquiry form and we will not charge you for this service.
There is a general rule of thumb used in the past to assess maximum borrowing capacity in Australia. This calculation is 5 x gross annual salary, less any existing mortgage borrowing. For example, client earns £100,000 per annum, and has existing mortgage borrowing of £75,000. We can therefore lend £425,000 (£100,000 x 5 minus £75,000).
Another more relevant calculation is the debt coverage ratio that takes into account anticipated monthly capital repayments on all mortgages, so that the sum total of all mortgage and personal loan commitments does not exceed 50% of your net monthly income.
In summary, the Australian lenders have different affordability calculators therefore maximum borrowing amounts can vary significantly from one lender to another.
The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.
Proof of income requirements
If you are employed:
- Your last three month’s payslips
- Your last two years P60 or annual taxation return equivalent form
- Your last three month’s personal bank statements
If you are self-employed:
- Your last two year’s Audited Accounts or financial statements
- Tax Return and possible an Accountants letter or reference may be required
- Your last three month’s personal and business bank statements
Other documents will be required and will be confirmed when application forms are sent to you.