Issues with lenders

Hi All
I am a non resident Australian currently living and working overseas on a yacht.
I have just purchased an investment property on the Gold Coast and have paid the deposit.
There was one other bidder involved and to get it over the line, I offered unconditional .
I was confident in my ability to get financing as I have cash reserves and a reasonable income.
It has been one month now and the banks I have tried with are struggling with various things, namely accepting that I don't have any living expenses and am not a tax resident anywhere. Settlement is in one month and with a 10% deposit on the line , I am getting decidedly nervous.
The purchase price is 1,250,000. A 5br house.
I currently have applications with 3 banks .
One bank is concerned about my lack of living expenses.
The other 2 keep requesting more and more docs which is really slowing the process down.
Any of you guys out there had anything similar ?
Any advice from brokers, bankers or other investors would be greatly appreciated.
I have posted this in both sub forums as I was sure which was best .
Thank you all.

 

Have you tried a broker who has access across all banks, second tier lenders & other sources of finance.

 

Non resident is difficult to get finance, even an Australian with foreign income. Talk to broker

 

Very difficult at the moment. Who have you tried? Are you a citizen of Australia?

 

If you are willing to cop a higher interest rate, perhaps a tier #2 non-bank lender with more relaxed policies for non-residents could be the way to go? I'm no broker so I can't offer any advice but maybe research lenders such as Liberty, Pepper, RAMS, La Trobe, to see what they offer?

Also @Munga on an unrelated note - I love your profile pic. Not many people would be 'in the know' on what it signifies but basically his words in that scene in that movie is my life investment/retirement goal! I love the whole idea of FYM!

 

What ever you do don't apply to any more banks! The hits will possibly auto decline your next shot so go see a broker who can ring ahead and get it sorted prior to application.

 

I do not think the smaller lender will go for it, I think they are harder and ask more for the full doc stuff, can you imagine any lender going for it ? guy from OS, living on a boat with no fixed address, hell it is hard enough when you live here as a permanent citizen.

Speak to one of the brokers here ASAP

 

Hi there, as mentioned above, a broker will be best placed to assist you.

As a non resident you can get finance and it will depend on the currency you get paid in and of course $$$ deposit you have saved in order to determine LVR.
you can look at this product through a broker La Trobe Financial - Non-Resident

You will need to verify identity which may mean you must visit the consulate of the country you hold citizenship, and there are processes to hold an address. I have used this product on many occasions for our chinese friends.

This can be the short term solution and you can then refinance a couple of years down the track.

I hope that helps to relieve the stress a little.

Cheers Ivan

 

Hi Terry, yes i am an Australian citizen.

 

Yes Cmac , i thought it was a very telling monologue and something we are all striving for, one way or another.

 

Hi Jess, can this be an issue, by applying through too many brokers? bein unconditional i thought it would be best to have as many irons in the fire as possible. is this not the case?

 

Hi Ivan, I appreciate your time taken to answer me. ill look in to that and see if that can be of help. Jess mentioned earlier I have to be careful with having to many applications. ill speak to them without a formal application and see what they think.

 

You will have to go through a broker with La Trobe....

 

Yes, each bank (application) does a credit check, each is registered, so when the next bank checks it looks like the first has knocked you back, so you've now applied to the next and so on........

Consider putting in more money 20% (if you have it)
aka to reduce the amount borrowing, as the lender will be more inclined to lend when they have less risk.

 

Hi Munga,

We have mortgages with both St George and Westpac, while living overseas (USA).

They insisted on 70% LVR rather than 89% which we had no issues with as we only borrowed around 60% LVR, but apart from that no real probs (apart from they insisted on using 7.5% on our USA PPOR for serviceability calculations......when we have a 30 year fixed at 3.5%).

As for tax, explain to them as a non resident, Australia govt doesn't calculate worldwide income, just Australian income (rental income etc).

As for living expenses.....you werent clear, are you working on a charter boat....if so explain living accommodations are provided by your employer, if retired/semi retired and just sailing.......then I'm calling bullsh!t on no living expenses and just use 10% of the cost of your boat as the minimum.

We used Stewart Noble as the broker for our last mortgage so you might want to give him a call +61-418-865-056 or email him on [email protected]

 

Hi Dean,
Thanks for the info.
Im working on a private yacht. I work for the guy who owns it. Its a 85metre motor yacht.
Ill contact Stewart Noble.

 

Well Carn then you at least have to give a link to quote/film.....

 

WOW 85 meters !!

It should be easy to explain that there are no living expenses involved and that its employer provided accommodation....lol if they don't believe you take a picture of yourself next to the boat and explain that it costs around 100% of your loan to run the boat a month and that its running costs are obviously not your expense

 

I think it becomes a risky proposition for the bank to assume no living costs/no tax, because circumstances change and they are issuing a 25 year loan. Wasn't that one of the recent changes by APRA? to use the greater of benchmarked living costs or actual living costs? It's highly unlikely you will have no living costs over the full course of the loan.

By all means use the lack of living costs, lower interest rates & taxes as a means of paying down debt faster/building deposits. But don't rely on it for your servicability.

 

I want to come up with some helpful advice but all I can think of right now is why don't I live on a yacht? I want a yacht.