Talk to a Loanseeker Broker about Aussie Expat Mortgages

Australian citizens who are living overseas can apply for an Australian home loan to buy real estate in Australia or to refinance their existing home loan.

Thousands of Australian citizens who have moved overseas continue to invest in the Australian property market because it’s familiar to them, stable and can have great returns.

Can I qualify for a home loan?

• You can borrow up to 95% of the property value if you have a good job overseas and a clear credit history in Australia.
• Interest rate discounts are available from some lenders even if you are overseas.
• The currency of your income is important and will affect which lenders will accept your application.
• If you are married to a foreign citizen then some lenders will not accept your application.
• Foreign business income is acceptable to a small number of Australian lenders.
• Your borrowing power may be reduced due to some lenders allowing for large exchange rate movements.
• A Power Of Attorney (POA) in the name of a solicitor or family member is required by some banks.

Looking for help with your home loan?

Please call us on 03 93984862(+61 03 93984862 from outside of Australia) or enquire online and one of our specialist mortgage brokers will help you to get approved.

Will I pay a higher interest rate?

Some banks do not allow people living overseas to qualify for discounted home loans.

As specialist mortgage brokers we can often successfully negotiate a substantial discount below the Bank Standard Variable (BSV) rate with some of our lenders.

You should not pay a higher interest rate for an Australian mortgage, unless you can’t provide evidence of your foreign income.

Will my currency be accepted?

Since you’re earning an income in a foreign currency, the first thing you’ll have to work out is whether your currency will be accepted. The most common currencies we deal with include:

• US Dollar (USD).
• Great Britain Pounds Sterling (GBP).
• Euro.
• Singapore Dollar (SGD).
• Canadian Dollar (CAD).
• Hong Kong Dollar (HKD).
• Japanese Yen (JPY).
• Swiss Franc (CHF).
• New Zealand Dollar (NZD).
• Chinese Renminbi (CNY) – Conditions apply.

For the above currencies, there is a good chance that we will be able to get you approved for a loan but what if you earn an income in a currency that falls outside of this list?

It’s important to keep in mind that investment policy changes on a regular basis including which currencies lenders will accept for the purposes of expats and foreign investors wanting to purchase property in Australia.

Please call us on 03 9398 4862 (+61 3 9398 4862 from outside of Australia) or complete our free assessment form and we can tell you if we can get you approved.

Will I need a deposit?

Most non-residents looking for a home loan will need to provide a 5% deposit and have enough funds to pay for stamp duty and other expenses. This deposit must usually be in the form of genuine savings, or it may not be accepted by lenders.

If you have a larger deposit or already own real estate in Australia then you may not be required to prove any genuine savings.

If your parents own a property in Australia then you may qualify for a guarantor loan which means that you don’t need a deposit at all.

Getting a home loan with a foreign citizen

If you’re married to or in a defacto relationship with a foreign citizen then this will affect the way that some banks see your application.

There’s three ways that they could assess your application:

• Assess you both as Australian citizens.
• Assess you both as foreign investors.
• Use the nationality of the highest income earner to determine how to assess your loan

The problem is that if you are assessed as a foreign investor then only a small part of your income will be used and you’ll require a larger deposit.

With some lenders you will also pay a higher interest rate.

You can avoid this by apply with a lender that has favourable lending policy for someone in your situation.

Please call us on 03 9398 4862 (+61 3 93984862 from outside of Australia) or complete our free assessment form and we can let you know which banks will accept your situation.

How can I prove my income?

If your payslips or foreign tax returns are in English then these can be provided as evidence of your income. Several of our lenders have specialist non-resident departments with staff that understand most common languages, so even if your documents require translation this is not normally a problem.

A valid work visa is required by several lenders as part of their verification process. This is waived if you are a dual citizen or can provided other evidence that you are permitted to work in that country.

If you are self employed then there are very few lenders that will accept your income. This is because self employer borrowers are a higher risk than people with a job and it is difficult to assess your business in an accurate way. We have a couple of options that may be able to assist depending on if you have an accountant or not, the country you are in and the curency of your income.

Your borrowing power

Exchange rate fluctuations, foreign tax rates, negative gearing benefits and repayments on foreign debts can mean that calculating your borrowing power is quite complicated and will vary between lenders.

Most lenders will use:

• Somewhere between 60% and 90% of your actual income.
• Australian tax rates even if you are living in a country without income tax.
• No negative gearing benefits.
• Loaded repayments on your foreign loans.

That means that most lenders will allow you to borrow much less than you can actually afford!

The good news is that there are many different ways that the banks will calculate your borrowing power and if you apply with the right lender then you won’t have this problem.

Do I need a Power Of Attorney (POA)

If you’re overseas then it’s quite handy to have a trusted family member, friend or solicitor that can sign documents on your behalf. A Power Of Attorney allows them to do this.

Some lenders require you to have a power of attorney that meets their requirements. They may require you to have a POA with a solicitor or a family member which may mean your current POA isn’t accepted.

Other lenders do not accept a POA! This can be a real hassle if you then need to have documents couriered overseas and then you need to attend the Australian colsulate to have them witnessed.

It’s a good idea to ask your mortgage broker what the lender’s requirements are before you both decide on a lender.

Choose your lender carefully!

The main problem faced by most Australian expatriates is that they have great trouble meeting the requirements to get their loan approved. Did you know that?:

• Some banks need to see your original payslips, tax returns and other documents prior to loan approval.
• There can be significant delays if you choose a lender that does not have a loan processing system that is designed to handle foreign addresses or foreign phone numbers.
• Many lenders will not approve a loan for more than 80% of the property value.
• Some lenders may require you to sign a formal loan offer at the nearest Australian Consulate.
• Several lenders charge higher interest rates if you are outside of Australia.

We are specialists in Aussie expat mortgages!

• Many of our customers are Australian citizens or dual citizens living overseas who want to invest in the Australian property market.
• We will choose a lender that accepts your situation. This way, you can avoid many of the headaches associated with applying for a loan.
• Most of our services are free.
• We know over 40 banks & lenders.

Having an expert mortgage broker in Australia can make all the difference! Please call 1300 889 743 (+61 2 9194 1700 from outside of Australia) or enquire online and our team will contact you to discuss how we can help.

Is Australian government approval required?

No, Foreign Investment Review Board approval is not required, even if you are buying with a spouse who is not an Australian citizen (refer to the FIRB guidelines for more information).

Apply for a mortgage

We are mortgage brokers who specialise in helping people overseas to buy property in Australia.

We have helped countless Australian expats buy a holiday home or invest in Australian real estate.

Our Loanseeker mortgage brokers are based in Melbourne, Australia and our services are international.

If you are an Australian expat, would like to buy a property in Australia and would like to know more about how we can help, then please contact us on 03 93984862 during business hours (+61 3 93 984862 from outside of Australia) or enquire online.

 

 

Talk to a Loanseeker Broker about Aussie Expat Mortgages

Australian citizens who are living overseas can apply for an Australian home loan to buy real estate in Australia or to refinance their existing home loan.

Thousands of Australian citizens who have moved overseas continue to invest in the Australian property market because it’s familiar to them, stable and can have great returns.

Can I qualify for a home loan?

• You can borrow up to 95% of the property value if you have a good job overseas and a clear credit history in Australia.
• Interest rate discounts are available from some lenders even if you are overseas.
• The currency of your income is important and will affect which lenders will accept your application.
• If you are married to a foreign citizen then some lenders will not accept your application.
• Foreign business income is acceptable to a small number of Australian lenders.
• Your borrowing power may be reduced due to some lenders allowing for large exchange rate movements.
• A Power Of Attorney (POA) in the name of a solicitor or family member is required by some banks.

Looking for help with your home loan?

Please call us on 03 93984862(+61 03 93984862 from outside of Australia) or enquire online and one of our specialist mortgage brokers will help you to get approved.

Will I pay a higher interest rate?

Some banks do not allow people living overseas to qualify for discounted home loans.

As specialist mortgage brokers we can often successfully negotiate a substantial discount below the Bank Standard Variable (BSV) rate with some of our lenders.

You should not pay a higher interest rate for an Australian mortgage, unless you can’t provide evidence of your foreign income.

Will my currency be accepted?

Since you’re earning an income in a foreign currency, the first thing you’ll have to work out is whether your currency will be accepted. The most common currencies we deal with include:

• US Dollar (USD).
• Great Britain Pounds Sterling (GBP).
• Euro.
• Singapore Dollar (SGD).
• Canadian Dollar (CAD).
• Hong Kong Dollar (HKD).
• Japanese Yen (JPY).
• Swiss Franc (CHF).
• New Zealand Dollar (NZD).
• Chinese Renminbi (CNY) – Conditions apply.

For the above currencies, there is a good chance that we will be able to get you approved for a loan but what if you earn an income in a currency that falls outside of this list?

It’s important to keep in mind that investment policy changes on a regular basis including which currencies lenders will accept for the purposes of expats and foreign investors wanting to purchase property in Australia.

Please call us on 03 9398 4862 (+61 3 9398 4862 from outside of Australia) or complete our free assessment form and we can tell you if we can get you approved.

Will I need a deposit?

Most non-residents looking for a home loan will need to provide a 5% deposit and have enough funds to pay for stamp duty and other expenses. This deposit must usually be in the form of genuine savings, or it may not be accepted by lenders.

If you have a larger deposit or already own real estate in Australia then you may not be required to prove any genuine savings.

If your parents own a property in Australia then you may qualify for a guarantor loan which means that you don’t need a deposit at all.

Getting a home loan with a foreign citizen

If you’re married to or in a defacto relationship with a foreign citizen then this will affect the way that some banks see your application.

There’s three ways that they could assess your application:

• Assess you both as Australian citizens.
• Assess you both as foreign investors.
• Use the nationality of the highest income earner to determine how to assess your loan

The problem is that if you are assessed as a foreign investor then only a small part of your income will be used and you’ll require a larger deposit.

With some lenders you will also pay a higher interest rate.

You can avoid this by apply with a lender that has favourable lending policy for someone in your situation.

Please call us on 03 9398 4862 (+61 3 93984862 from outside of Australia) or complete our free assessment form and we can let you know which banks will accept your situation.

How can I prove my income?

If your payslips or foreign tax returns are in English then these can be provided as evidence of your income. Several of our lenders have specialist non-resident departments with staff that understand most common languages, so even if your documents require translation this is not normally a problem.

A valid work visa is required by several lenders as part of their verification process. This is waived if you are a dual citizen or can provided other evidence that you are permitted to work in that country.

If you are self employed then there are very few lenders that will accept your income. This is because self employer borrowers are a higher risk than people with a job and it is difficult to assess your business in an accurate way. We have a couple of options that may be able to assist depending on if you have an accountant or not, the country you are in and the curency of your income.

Your borrowing power

Exchange rate fluctuations, foreign tax rates, negative gearing benefits and repayments on foreign debts can mean that calculating your borrowing power is quite complicated and will vary between lenders.

Most lenders will use:

• Somewhere between 60% and 90% of your actual income.
• Australian tax rates even if you are living in a country without income tax.
• No negative gearing benefits.
• Loaded repayments on your foreign loans.

That means that most lenders will allow you to borrow much less than you can actually afford!

The good news is that there are many different ways that the banks will calculate your borrowing power and if you apply with the right lender then you won’t have this problem.

Do I need a Power Of Attorney (POA)

If you’re overseas then it’s quite handy to have a trusted family member, friend or solicitor that can sign documents on your behalf. A Power Of Attorney allows them to do this.

Some lenders require you to have a power of attorney that meets their requirements. They may require you to have a POA with a solicitor or a family member which may mean your current POA isn’t accepted.

Other lenders do not accept a POA! This can be a real hassle if you then need to have documents couriered overseas and then you need to attend the Australian colsulate to have them witnessed.

It’s a good idea to ask your mortgage broker what the lender’s requirements are before you both decide on a lender.

Choose your lender carefully!

The main problem faced by most Australian expatriates is that they have great trouble meeting the requirements to get their loan approved. Did you know that?:

• Some banks need to see your original payslips, tax returns and other documents prior to loan approval.
• There can be significant delays if you choose a lender that does not have a loan processing system that is designed to handle foreign addresses or foreign phone numbers.
• Many lenders will not approve a loan for more than 80% of the property value.
• Some lenders may require you to sign a formal loan offer at the nearest Australian Consulate.
• Several lenders charge higher interest rates if you are outside of Australia.

We are specialists in Aussie expat mortgages!

• Many of our customers are Australian citizens or dual citizens living overseas who want to invest in the Australian property market.
• We will choose a lender that accepts your situation. This way, you can avoid many of the headaches associated with applying for a loan.
• Most of our services are free.
• We know over 40 banks & lenders.

Having an expert mortgage broker in Australia can make all the difference! Please call 1300 889 743 (+61 2 9194 1700 from outside of Australia) or enquire online and our team will contact you to discuss how we can help.

Is Australian government approval required?

No, Foreign Investment Review Board approval is not required, even if you are buying with a spouse who is not an Australian citizen (refer to the FIRB guidelines for more information).

Apply for a mortgage

We are mortgage brokers who specialise in helping people overseas to buy property in Australia.

We have helped countless Australian expats buy a holiday home or invest in Australian real estate.

Our Loanseeker mortgage brokers are based in Melbourne, Australia and our services are international.

If you are an Australian expat, would like to buy a property in Australia and would like to know more about how we can help, then please contact us on 03 93984862 during business hours (+61 3 93 984862 from outside of Australia) or enquire online.