Need to Apply to Pre-Approval. Help a Poor Fellow OzBargainer!

arkhos on 04/02/2024 - 15:58
Last edited 04/02/2024 - 15:59

Hi everybody,

Little bit of background about my life in the last three years. I worked for a year for an Aus company, then relocated overseas for about two years. Eventually, I got back here in December with a permanent job contract (whereas the previous two were fixed term). I am citizen (with ceremony pending..) and can provide evidence of about 381kAUD liquidity (partially thanks to mom&dad and my own sacrifices) and around 180k in stocks.

I would like to buy a property, nothing luxurious, just to avoid paying somebody's else mortgage and therefore I am looking at units priced around 800k. Meaning that I will need a mortgage.

As a total noob in the housing game, I understand this will require pre-approval. Coming to my question: will it be a problem the fact that I had a gap of about two years between my last Australian job and my current one? In between, I was regularly paid for my foreign employer, but I am not sure how this information will enter the evaluation.

Lastly, is there a recommendation on which broker / bank to get pre-approved by? Is that a problem to run multiple applications?

thanks guys.

Financial

Comments

  • Hardlyworkin on 04/02/2024 - 16:07
    +2

    Ask your friends / workmates for a broker recommendation in your area and start with them. Best bet if you're a total noob.

  • urahara on 04/02/2024 - 16:10
    +7

    I won't buy an apartment for 800k , also I'll try too for a house even if it bit far

    Good luck

  • jjjaar on 04/02/2024 - 16:11
    +1

    You’ll likely need to be out of any probation period with your current employer, and need to show last two payslips to prove your ongoing income. Other than that, the 2 years shouldn’t matter so much.

    But agree that speaking with a broker is your best bet. They’ll do all the calculations and decide which bank to go with for pre approval.

    Where are you located? I can recommend a good broker in Melbourne.

    • arkhos on 04/02/2024 - 23:15

      Thanks. Unfortunately, the type of job I do has crazy long probation periods (up to 3 years), hence I will still be in probation while applying for credit.

      I am based in Sydney, in case you have a network there as well..

      • TheBilly on 06/02/2024 - 14:48

        It's not really probation they look at, they want at least 3 months or 6 months of work history. Never had the bank look at probation. But on the same token, it is really hard to get approved at 3 months it's not common. You generally need 6 months unless you have a really good broker and your job is very secure (high demand field).

  • freefall101 on 04/02/2024 - 16:14

    Having a current job plus proof of foreign income historically should be fine. Get all your documents in English where possible from when you were overseas, bank statements showing deposits, tax returns and payslips. If it's not in English it may be worth getting an interpreter to certify them.

    I'd bring as much money as possible back to Australia, if you have any overseas. When I did my home loan I still had funds in Canada - due to the hassle I just left them there (it didn't impact the loan).

    If your parents are only just now throwing in cash, you'll probably need to get a stat dec from them. Also figure out how much you're contributing to the loan, if you're going all in with the $381k then being less than 60% LVR should make it pretty easy.

    It might be worth talking to a broker just to get their experience on it. But remember you don't need to actually get a loan through them if you don't want to.

  • InLaymansTerms on 04/02/2024 - 16:20
    +1

    Should check out the lads at Suburb Data. They have a tool called DSR which allows you to use data to make your decisions. They have a really good podcast going where they really teach you a lot when purchasing real estate.

    • arkhos on 04/02/2024 - 23:16

      thanks, that's great

  • BanannaMan on 04/02/2024 - 16:36

    My Broker is amazing, I do everything over email but located in VIC
    I've recommended him to QLD work mates and they all loved him too

    Craig Micallef
    Loan Consultant
    Mortgage Choice

    Ph: 03 9308 9163, Fax: 03 9308 9257, Mob: 0417 655 577
    PO Box 345, SOMERTON VIC 3062

  • Typical16-bitEnjoyer on 04/02/2024 - 16:56
    +1

    Liquidate and buy something for 550k

  • lhou021 on 04/02/2024 - 18:17

    just contact a broker, and get their help on pre-approvals
    or pick a bank and get 1 pre-approval, then you will get an idea on how much you can borrow, it would not differ too much between different banks, just minor variations on borrowing power

  • p1 ama on 04/02/2024 - 18:31
    +2

    Coming to my question: will it be a problem the fact that I had a gap of about two years between my last Australian job and my current one? In between, I was regularly paid for my foreign employer, but I am not sure how this information will enter the evaluation.

    Basically, no. As long as you are currently employed, and can provide employment history of 6 - 12 months, that's fine. I've never been asked to provide any financial information beyond the past 6 months in my experience applying for mortgages.

    • hasher22 on 05/02/2024 - 00:08

      I only needed fo provide my last 2 payslips (fortnightly pay) to my broker.

      Furthermore is proving 6 to 12 months of employment a thing with banks now? I thought the default was around 3 months worth of payslips and bank statements?

  • pollopollo on 04/02/2024 - 19:18
    +1

    I am citizen (with ceremony pending..)

    Off topic, but you're only a citizen once you do the ceremony.

  • hasher22 on 05/02/2024 - 00:10

    Speak to a broker, also 800k for a unit? Where you looking at? I wouldn't even pay 600k for a 2 bed, 2 bath unit but I know how effed up the market is.

  • TheBilly on 06/02/2024 - 14:46

    From what I have experienced, your income needs to be current (coming into your account at the time of application) and there needs to be at least 3 months of history. It is really hard outside of that. I have had issues getting a home loan when I had just left a job and was transitioning into a new job with a small gap.

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