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Tuesday, February 20, 2018

Foreigner Buying a property in Australia : step 3

When you’ve found a property to buy, you can then forward the contract of sale to us as your mortgage broker to proceed with the formal approval.
Remember, don’t commit yourself to buy a property until your mortgage is formally approved.
If there’s a cooling off period it’s okay to sign the contract, otherwise don’t sign the contract until you know that you can get a mortgage.
You can exchange your contract after your loan has been formally approved and your solicitor or conveyancer gives you the go ahead.
Normally, you’ll need to put down a 10% deposit.
The amount of the deposit is negotiable and differs between the states.
Note that once you’ve committed to a property, you can’t back out so please seek legal advice before signing any contracts or paying your deposit.

 FIRB approval

It’s very important that the contract you’re signing has the clause “subject to FIRB approval” and 30 days must be allowed for a FIRB decision.
At this point, it’s vital to check with your conveyancer or solicitor that the clause is stated in such a way so as to ensure that if your FIRB proposal is rejected, you won’t lose your deposit.
FIRB application is simple to do and will usually be taken care of by your conveyancer.
You may need to provide a copy of the approval to your lender prior to your loan being advanced.
You can ask your mortgage broker to go over it with you, or get help from your conveyancer or solicitor.
You have the right to obtain independent legal advice about your loan contract.
To accept the loan offer, sign the appropriate sections and return the loan documents back to the bank.
Do a final inspection on your property the day of settlement. This can be completed by your buyers agent if you’ve hired one.


“Settlement” is the term used when the property actually changes hands and your loan is advanced.
This will be handled by your conveyancer or solicitor in conjunction with your bank and mortgage broker so you don’t need to be there for this to happen.
The title for the property is held by your lender for safe keeping and the keys are available for pick up from the selling real estate agent.