Hi ajob12,
Sorry for the late reply. Not sure I can answer all your questions, as I am new to this too, but I will try assist best I can:
- Holiday home vs Buy-to-let = Lenders offer different loan packages. I am not well versed here. I would suggest an Irish broker to guide you through this.
- Deposit = As a non-resident, I was asked for 35%. That was compulsory for my application. It may differ across lending institutions but I don't think by much. Some lenders won't even look at your application if you are not earning a certain salary overseas (I understand 100K Euro). So even if you are on a good salary in Oz, it may not convert well with the shocking rate.
- Verify borrowing power = This is easy. You'll be asked for Oz payslips, savings statements, P60 (Oz equiv), etc. They simply take today's exchange rate, calculate it all and compare it against their lending criteria. Simple as that. You will also be asked for a credit history statement from Veda in Oz. That's just the half of it - they check everything. And rightly so I guess.
- Oz property collateral = no idea on this. Irish Tax accountant for this question I think.
So a very important thing I saw across all the lenders in Ireland that was consistent is that they want to see very clearly your ability to repay. So you do the math on how much you think your monthly repayments will be (let's say 1000 Euro) - then convert it to AUD = 1600 AUD. This is the amount you have to be able to show 'you can save' per month. Not the amount 'you have coming in' per month but the amount you can save after all your outgoings. They asked me for 9 months of bank statements to show this. So in other words, if you're planning to rent it out, and you can't, they want to see you have it covered.
So my thoughts:
1. Search for an Irish mortgage broker on line (google mortgages for ex-pats or suchlike - there are a few).
2. They will ask you for heaps of information and documentation - this takes some time. Once submitted, it's in the hands of the broker and the lenders.
3. At the same time, do your planning and do your math in advance and work out if you can afford it. The repayments, the insurance, all of the fees - estate agents, solicitors, tax accountants, surveys, valuations, and if you're renting it out - what's the rental market like in that area, etc. 80% of this whole process I spent planning, researching and doing figures.
4. Then ask yourself, do you really want to buy a house in Ireland?