Interest Rates and Charges

Some lenders will allow for discounting of mortgage interest rates. This allows expat borrowers to access similar rates to Australian borrowers living in Australia. Some lenders will not discount or charge higher rates for Australian expat borrowers.

It is important to discuss with your hfinance mortgage broker, the differences to see which lenders you will be eligible for based on your financial circumstances.

Application Fee

An application fee may be charged by the bank. This fee will cover the cost of assessment and conducting the valuation of the property. The valuation ordered by the bank will incur a cost by the 3rd party valuer.

The valuer will submit a valuation report to the bank as part of the responsible lending process. The application fee may also cover any settlement charges the bank incurs in relation to the preparation of legal loan documents and attending settlement.

Conveyancing / Legal Fees

When you settle on a purchase you’ll be represented by a conveyancer or a lawyer. You will need to engage with this representative at the start of the purchase and request a quote for their services.

Their services will include the review of the section 32 contract (which is the binding contract signed between the vendor and the purchaser) and provide legal advice until settlement. The conveyancer or lawyer will engage with the vendors’ lawyers and the banks’ legal representatives leading up to and at settlement.

At the date of settlement, the parties will exchange titles and cheques and lodge the new titles with the applicable state office to update titling and registration for the new owners.

At the date of settlement, the respective agents will also settle on any outstanding costs (for example the purchaser will pay a prorated amount to the vendor to reimburse for any rates and taxes that have been pre-paid in relation to the purchased property) this amount will be outlined a couple of days before settlement by your conveyancer or lawyer.

It is the purchaser who should arrange the conveyancer or lawyer, if you are looking for a reputable professional – hfinance can assist with recommendations.

Power of Attorney

A power of attorney is a legal document in which one person nominates and gives legal authority to another to act on affairs on their behalf. In effect, a power of attorney allows you to delegate the management of your affairs to someone you trust.

Some lenders will require a Power of Attorney to represent your legal affairs as you are located outside of Australia. This is not a requirement by all lenders, but it is important to keep that in mind when you are engaging a legal representative, that can also act as a Power of Attorney (if required)

Stamp Duty

Stamp Duty is a state-based levy, which is charged at settlement. Given it is a state-based levy, the amount and calculation differ between states. Generally, the levy is charged against the ‘dutiable value’ of the property. This charge is levied and paid at settlement to the state revenue office.

It is important to know that some states have an additional levy for foreign ownership. This means the value that is owned by a foreigner (this could be applicable for purchases that has an Australian and a foreign partner on the title) will be subject to a higher dutiable rate.

To read about the Foreign Dutiable rates in Victoria click here and to read about the Foreign Dutiable rates in New South Wales click here.

State Registration Charges

There is a cost imposed by the applicable state office, for the transfer and registration of the new title and mortgage with the state office.

This cost is generally $150-$200, please check the applicable state office for further detail.

What are the costs involved when refinancing an existing mortgage?

Below is a list of the costs involved with refinancing an existing mortgage. Generally speaking, we allow of $700 AUD to cover the below costs and when performing a comparison costs report - we can identify if the costs involved benefit with a new loan and lower fees and charges.

Discharge Fee

A Discharge fee will be levied by the outgoing lender, this charge is in consideration for the time to prepare and discharge the title from their possession.

This cost differs between lenders and would be outlined in your original loan contract, but the cost is generally between $200 – $400.

Application Fee

An application fee may be charged by the bank. This fee will cover the cost of assessment and conducting the valuation of the property. The valuation ordered by the bank will incur a cost by the 3rd party valuer.

The valuer will submit a valuation report to the bank as part of the responsible lending process. The application fee may also cover any settlement charges the bank incurs in relation to the preparation of legal loan documents and attending settlement.

Conveyancing / Legal Fees

With a refinance transaction, a conveyancer is generally not required as the transaction will occur between the incoming and outgoing lender. It may be worthwhile to consider a legal representative to review the loan contract.

Cashback

A cashback may be on offer as part of the refinance process. New lenders sometimes have specials where they offer a form of cash, that is reimbursed post-settlement. This generally covers all the refinance costs, to assist the borrower in changing lenders.

Power of Attorney

A power of attorney is a legal document in which one person nominates and gives legal authority to another to act on affairs on their behalf. In effect, a power of attorney allows you to delegate the management of your affairs to someone you trust.

Some lenders will require a Power of Attorney to represent your legal affairs as you are located outside of Australia. This is not a requirement by all lenders, but it is important to keep that in mind when you are engaging a legal representative, that can also act as a Power of Attorney (if required)

State Registration Charges

There is a cost imposed by the applicable state office, for the transfer and registration of the new title and mortgage with the state office.

This cost is generally $150-$300, please check the applicable state office for further detail.

Please note that the above is to be used as a guide for the costs involved when purchasing or refinancing. When settlement approaches your legal representative will give you a statement of adjustments, which will break down the costs involved for settlement.

To read more about acceptable income for Australian Expats. To read more about Australian Expat Home Loans click here.

We have an office in Sydney and Gold Coast, Australia. You can contact our main Australian business on 1300 928 227 or email info@hfinance.com.au.