Getting a home loan in Australia

The phrase 'as safe as houses' is one you may hear in Australia. It represents the confidence that many ordinary Australians have in owning their own home, and in their faith that the property market is a reliable component of personal wealth. Australians are some of the most avid property investors in the world.

Borrowing money to buy real estate is common. Australia has a highly developed and competitive home loan lending system which makes home ownership readily available. There are many different types of lending institutions to choose from -banks, mortgage managers, wholesale lenders, private lenders, building societies, credit unions and more. And each of these lenders has a variety of loan types to choose from - fixed and variable rates, lines of credit, basic loans, all-in-loans .

There are certain challenges that all new entrants to Australia must face when borrowing money for your very own 'piece of Australia'. Many lenders do not take into account your work history outside of Australia. This is particularly the case for self-employed people, where many lenders require you to develop a minimum two-year work history in Australia before they will consider you for a loan.

Fortunately there are lenders who will take a common-sense view of your ability to repay the loan. The key is to get your finance organized as early as possible - before you even arrive in Australia is ideal as it gives you the maximum number of options. And more fortunate still, there are free services available to help you find the lender best suited to your situation.

These free services are provided by mortgage brokers, an example is the Mortgage Australia Group, a broking firm with branches across Australia and access to more than 40 major lenders. Mortgage brokers act on behalf of you, the borrower, to help you find the best loan for your needs. Mortgage brokers have relationships with many different lenders and know their lending criteria intimately. They assess your specific situation, determine which lenders would be willing to lend you money, compare the fees and interest rates of those lenders, and take you through the lending process from start to finish.

Mortgage brokers can offer this free service because many lending institutions have reduced costs by allowing brokers to offer their products to the public. The lenders pay a success fee to the broker. This fee is not passed on to the borrower as paying a broker is cheaper than the lenders maintaining their own sales force. The result is an independent buyers advocate, working on your behalf to help you get the best home loan available.

It is important to choose your mortgage broker carefully:
* Your broker should have no less than twenty lenders for you to choose from.
* They should not charge you a fee for their service, as they are getting paid by the lender you choose to get your loan with.
* They should be a member of the Mortgage Industry Association of Australasia.
* Your broker should clearly state the fee they are getting for organizing your loan.

Good luck with achieving home ownership, and welcome to Australia!

Information supplied by:
David Ham, Director
Mortgage Australia Group
Phone: 1800 180 800 (within Australia)
Phone: +618 9471 7209 (outside Australia)
Email: offshore@mortgageaustralia.com.au
Website: www.mortgageaustralia.com.au