Things to consider for new migrants when preparing for a loan

New migrants, or individuals who have recently moved to Australia?  

The ability to secure a loan as a new migrant can depend on several factors, including your immigration status, credit history, and financial stability. Here are some considerations for new migrants seeking loans:

1. Credit History: Establishing a credit history in a new country is essential for obtaining loans. However, new migrants often start with a clean slate and may not have a credit history in the new country. Lenders typically use credit reports to assess creditworthiness, so it is important to build a positive credit history over time.

2. Immigration Status: Your visa status can impact your eligibility for certain types of loans. Permanent residents or individuals with work visas may have an easier time accessing loans compared to those with temporary or undocumented immigration status.

3. Proof of Income or savings: Lenders usually require proof of a stable income to assess your ability to repay a loan. As a new migrant, you may need to provide documentation such as employment contracts, pay slips, or bank statements to demonstrate your income stability. Genuine Saving history is especially crucial when seeking a high LVR (Loan to value ratio) loan. 

4. Collateral or Guarantor: If you have limited credit history, providing collateral or having a co-signer (guarantor) with a more established credit history may increase your chances of loan approval. This provides additional assurance to the lender.

5. Government Programs: Some countries have specific programs or financial assistance options for new migrants. Check with government agencies or non-profit organizations that provide support to immigrants to explore available resources.

6. Financial Institutions with Immigrant Services: Some financial institutions specialize in serving immigrants and may offer tailored loan products or financial education programs. Research and reach out to such institutions for guidance.

7. Community Organizations: Local community organizations, immigrant support groups, or cultural associations may provide information and assistance regarding financial services, including loans.

8. Alternative Lenders: Explore alternative lending options, such as online lenders or microfinance institutions, which may have more flexible criteria for borrowers without an extensive credit history.

9. Using overseas income: it is possible for the banks to use the migrant applicant's overseas income. The common type of overseas income is employment income. In some cases, overseas Self employed income, investment incomes are also acceptable by specific number of lenders including non bank lenders. An experienced mortgage broker in migrant lending will be able to provide such constructive advices to guide you through the options.

It's important for new migrants to be proactive in establishing their financial profile in the new country. Building a positive credit history, maintaining stable employment, and seeking guidance from experienced mortgage broker can contribute to the successful approval rate.