What do you know about Australian housing loans?

This issue mainly discusses the basic process of Australian real estate loan and the problems that ordinary loan applicants are worried about. The concerns of ordinary Australian loan applicants can be divided into three categories. The first category is interest rate. The second category is the time, expenses and materials needed to apply for loans; The third category is loan amount, percentage and repayment plan. 1. About the loan interest rate. 1. The difference between banks and non-bank financial institutions. First, let's talk about interest rates. In China, housing loans are generally issued by banks, with houses as collateral to ensure the interests of banks. By absorbing and storing funds, release funds through lending. Guarantee the bank's income with deposit and loan spreads. So simply speaking, the bank's loan interest rate is closely related to the savings interest rate. The financial market in Australia is very different from that in China. In addition to banks, there are many other financial organizations in Australia, that is, non-bank lenders, who have the right to issue loans. These institutions are not funded by banks. Not saving, but raising funds through funds, trusts, etc., such as pensions. In fact, compatriots from China sometimes have a misconception that it is safer to cooperate with banks. These non-bank financial institutions do not have the strong financial guarantee and goodwill as banks. Actually, it's wrong to think so. Because the credit degree of financial institutions is not directly related to whether they are banks, banks do sound a little "rich", but because the sources of funds of non-bank financial institutions often include strong sources of funds such as pensions, their funds are not necessarily inferior to those of banks. Moreover, the best way to measure the stability of a financial institution is to check whether the credit rating of the financial institution is relatively reliable. Data show that the credit ratings of many non-bank financial institutions are not lower than or even higher than those of banks. In addition to the source of funds, the difference between banks and non-banks lies in the scope of business. Due to financial regulations, the business scope of non-bank financial institutions is often not as extensive as that of banks. But as far as housing loans are concerned, there is not much difference between financial products provided by non-banks and banks. Even on the issue of interest rates and annual fees, many non-bank financial institutions have greater concessions than banks. This has caused a very interesting phenomenon. Many customers in China tend to prefer banks, and a considerable number of Australians have strong resistance to banks. For the lender, he should pay more attention to products than institutions. The key is which financial product is more suitable for his own needs, not which institution is more famous. Sometimes, in the financial field, "shopkeepers bully customers" will also occur. Some people are rich, some people are famous, and some people have customers. You don't have to provide you with more favorable conditions, and better service can keep you. Actually, I'm kidding. Don't forget that you borrowed the money. Let's take ten thousand steps back, even those. Yes, your title deed is in someone else's hand, but Australian law protects private property. Even if the creditor changes, it is completely impossible to overturn the contract signed by the original creditor with you to sell the house and pay off the debts. 2. Interest rate discussion At present, the interest rate of Australian banks' housing loans is generally 8.07%, but most people should get a discount of no more than 0.75%. Therefore, the interest rate that banks can offer is generally not less than 7.32%, and 7.37% is also the most common interest rate for banks now. You may see that some banks or other financial institutions offer interest rates of 6.99% or even lower in advertisements, but don't ignore that this interest rate is usually marked as "honeymoon interest rate" or "induced interest rate". What does this mean? This interest rate is really favorable, but the problem is that it can only last for one year at most. After a year, your loan will automatically jump to a higher interest rate. This new interest rate is often higher than the real interest rate, that is, 7.32%, and even jumped to 8.07%. If you want to switch to other financial products with lower interest rates in this financial institution, you can. But you need to pay. If you want to transfer to other financial institutions, you can, but you have to pay a fairly high fine. Ignored, housing loans are often 30 to 40 years, and you can spend a lot of money unconsciously. It can't be said that this is a trap, but you'd better read the terms of the contract carefully before signing. Do a good job of accounting for yourself. There is another small detail that you should pay attention to, that is, many financial products are subject to an annual fee, which is generally around $300 or even higher. You shouldn't ignore this when calculating the loan interest rate. For example, if you have a loan of $300,000, the loan interest rate is 7.37%, and your lending institution charges you an annual fee of $300, then you should actually. Does this interest rate still satisfy you? Generally speaking, various products of housing loans can be divided into variable interest rates and fixed interest rates. Generally speaking, the fixed interest rate is higher than the variable interest rate. For example, if the variable rate is 7.37%, then its fixed rate may be 7.44%, which is normal. If you choose a fixed interest rate, it is equivalent to buying insurance for your future interest rate. Lenders may charge you a little more money in return for their loss of financial freedom. Generally speaking, if you are worried that interest rates will rise in the future, you are more likely to choose a fixed interest rate, but in fact you are not in the safe. You need to pay attention to two points about the fixed interest rate. First of all, the fixed interest rate is not always fixed during the term of your loan. Generally, the current fixed interest rate can only last for five years at most, which means that you can only fix your interest rate within one to five years. When this period is over, you need to negotiate a new interest rate with your lending institution according to the current interest rate. The second is that fixed interest rates are not necessarily "fixed". Your fixed interest rate can be changed before settlement. This change is determined by your lender. They often adjust their fixed interest rates according to the constantly updated financial information. If you apply for a fixed interest rate loan and want to enjoy your favorite fixed interest rate after settlement, you often have to pay a "lock-in fee". Therefore, customers are not advised to make loans with a fixed interest rate, because the interest rate is often higher in the first place. Second, the variable interest rates of all financial organizations are closely related to the Reserve Bank, and the interest rate changes of the Federal Reserve Bank represent the influence of the government on the financial market. Therefore, another interesting phenomenon appeared. Some customers will ask why the fixed interest rate always changes and the variable interest rate never changes. In fact, the answer is simple, because the variable interest rate is pegged to the Fed, and too frequent changes are not conducive to the national economy and consumer confidence. Therefore, when the Federal Reserve changes interest rates, it always needs to be considered and demonstrated in detail, and the change of fixed interest rates can be attributed to the rapid changes in the wind direction of financial markets, so it is reasonable for financial institutions to make corresponding adjustments in order to protect their own interests. 2. Loan time, materials and expenses The process of loan is: deciding on a good house-contacting the lending institution-submitting an application-evaluating-exchanging contracts. The upfront expenses for reaching a settlement loan mainly include: attorney fees, evaluation fees, application fees and attorney fees. The general practice of banks is to package lawyer's fees, evaluation fees and application fees into an application fee. Some financial institutions will also waive the application fee, but the lawyer's fee and evaluation fee will still be charged, which is different, but not very big. Lawyer's fee refers to the fee you need to pay when you review the contract with the lending institution and when you review the contract with your lawyer. In Australia, a deposit of 0.5% is generally paid first, and the deposit will rise to 10% after two weeks. You still have some time to complete your loan procedures and then pay. If you can't pay off the loan after the specified time, if your credit conditions can't lend the amount you want, and your loan can't be completed on time for other reasons, the owner of the house has the right to sell the house to others without refunding the deposit. The loan usually takes six weeks, including the time required for evaluation and the time required for contract review. However, it is strongly recommended that you contact the lending institution before buying a house, so that they can help you do a "pre-examination" according to your credit status, telling you how much money you can borrow and how long it will take, which can help you avoid the above risks. And because most lending institutions have their own cooperative real estate agents, you may get more favorable real estate prices from them. The materials needed for loans vary widely according to the lending institutions and financial products, but they are actually very simple. As long as you understand an accounting concept, there will be no problem. Lending institutions require you to provide materials only to understand your financial situation and ensure your legal expediency. In accounting, four aspects of information can include your financial situation, that is, assets: original real estate, deposits, cars, real estate and so on. Debt: other loans and other liabilities; Income: salary, other income (if your house is used for investment, this income can also be included); Expenditure: generally, you don't need to write this part, because the financial calculator will automatically deduct the expenditure, so you don't need to provide proof of expenditure. But in addition, you need to provide your identification, that is, 100 integral ID. The so-called 100 score ID means that the lending institution scores the issued documents according to the authority of the issuing institution, and the score of the documents you provide must be greater than 100, such as passport, 75, driver's license, 45, 75+45 = 120 > 1000. China immigrants often have to face a problem, that is, because of tax avoidance and other reasons, the income on the income certificate is very low. If you apply for a loan according to this income, the amount you can apply for is often too small to meet the demand, but you can turn to the loan agent, who should be able to find a solution according to your situation. There are also some newly graduated students, or new immigrants, or freelancers, who find it difficult to provide effective proof of income. At this time, special products such as lodoc loans can be considered. The characteristic of this product is that they don't need traditional income proof (such as employer's statement), and you can prove your repayment ability in other ways, so you can still borrow money. However, you may have to pay higher interest and put up with a smaller loan limit. 3 loan limit, percentage and repayment plan. Different from China, financial institutions in Australia can provide more than 80% of housing loans, and some financial institutions can even lend as much as 65,438+000%. However, more than 80% of loans must pay a certain percentage of mortgage insurance. This is not a small expense. I hope you will put it in your own consideration. Maybe many friends don't know how much money they can borrow on their own. This calculation formula is very complicated, but your loan amount will not be less than five times the annual income of the loan applicant. You can simply calculate your loan ability. Regarding repayment, financial institutions can provide interest-free loans at present. If you don't have a lot of liquidity at present, you can also choose this kind of product to reduce the current repayment pressure. But remember, being relaxed now is at the expense of future pressure. If a large amount of money will arrive in your account within a few years after the loan, you can pay less interest by prepayment, but many financial products will be fined for prepayment, so I suggest you consult a loan consultant to achieve your goal at a lower cost. 4. Miscellaneous things 1. First-time home buyers If this is your first property in Australia, and the purpose of the purchase is to live for yourself and have Australian status, then congratulations. According to Australian regulations, you can get a discount. According to different national regulations, the benefits you get include stamp duty and other discounts. The amount is quite large. 2. refinance if your current mortgage interest rate is not very low, then you can consider refinancing, that is, borrowing from other financial institutions to pay off your original loan, so as to enjoy a lower interest rate. This alone can save them thousands or even thousands of dollars every year.