Refinancing foreigner loan

Discussion in 'NRAS & NDIS SDA' started by Wukong, 29th Jan, 2017.

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  1. Wukong

    Wukong Well-Known Member

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    PC brokers

    A family member needs to refinance loans on two NRAS properties in Melbourne.

    Expecting it to be tricky, anyone has ideas or want to take it up?

    Situation:
    2 X 1/1/0 studio apartments 40sqm
    Postcode Melbourne 3000
    Current loan based out of Singapore
    Borrower is 65, runs own business

    Low LVR is fine. He also has an unencumbered property in Melvourne conservatively worth 600k.

    Thanks.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What do you mean by 'forieginer?'
    Where do they reside, permanent residence, citizenship?

    Why do they want to refinance?
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    It depends - need to know the following:

    1. Are they an Australian Citizen or Permanent resident or are they a pure non residents
    2. Do they complete their tax returns in Aus or overseas?
    3. What does "current loan based out of Singapore" mean?

    If they are an Australian citizen or permanent resident then CBA is a good option in that they will go up to 95% (80% considering its NRAS) however the biggest issue you will have is with the self employed income. Lenders' policies have changed dramatically over the past 12 months whereby they are sticking to PAYG income.

    Westpac and St George have a hard and fast policy with self employed income in that they don't accept it. However CBA "may" accept it on a case by case basis. It would need to be a pretty strong case for them to accept.

    Your other options include Citibank, HBSC and La Trobe.

    Citibank would be the best option as they are the only lender that will accept self employed income - their max LVR is 60% unless you are a gold Citibank customer.

    We do a fair volume with Citibank and they are a pretty good lender so that would be my first port of call.

    The other issue is the age - they need to be in a position to provide a strong exit strategy and ability to repay the loan before the age of 75.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I will take a guess

    Sing $ mortgage, and the borrower is moving back to OZ.

    ta

    rolf
     
    Terry_w likes this.
  5. Wukong

    Wukong Well-Known Member

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    He's pure non resident, taxes are done outside of Australia.

    SGD loan in Singapore backed by NAB. Needs to refinance as he's reached SG age retirement of 65.

    If there are any PC Brokers open in taking this up, can you send me a PM.

    Thanks.
     
  6. cheekykoon

    cheekykoon Well-Known Member

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    It's postcode 3000. How did he managed to get the loans for ,<50m sq apt out of loans from Singapore? Why did he need to refinance? Is nab chasing him to close the mortgage after his retirement age at 65?
     
  7. JetstreamVic

    JetstreamVic Well-Known Member

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    The unencumbered property will mean squat when they are unable to reach serviceability (I wonder how the self-employed financials look)

    The postcode and size of the property will also cause a few issues with some lenders

    Could this be a up and coming trend for our friends overseas?
    Something else to add to the glut of properties
     
  8. Tom Simpson

    Tom Simpson Well-Known Member

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    Non-main stream lenders only. I just went through the ringer for a client married to an Aussie and I couldn't place them with any main stream lender. There were plenty of shadow lenders interested but rates were sky high.

    All banks have come down hard on foreign lending in the last 6 months or so.
     
  9. Yson

    Yson Well-Known Member

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    How high is the rates n what lender?
     
  10. Tom Simpson

    Tom Simpson Well-Known Member

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    North of 10%.

    I won't go into which lender but perform a simple google search then send out a dozen emails and you'll likely run into someone willing to lend.
     
  11. virgo

    virgo Well-Known Member

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    Isn't it strange that Singapore banks are willing to lend to Singaporeans buying property in Australia but no Australian bank will lend to Australians buying in Singapore ?

    or am i wrong? happy to be corrected though...