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Home Loans for Australian Expats

Can expats get a mortgage in Australia?

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Absolutely! Australian expatriates can indeed apply for mortgages in Australia, often with borrowing capacities similar to those of citizens living within the country. While residing abroad, expats maintain the right to invest in property back home, allowing them to secure a mortgage and pursue homeownership in Australia.

Income Verification

  • Lenders typically require detailed income verification for Australian expats. This may include pay slips, employment contracts, and tax returns from the country of residence.

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  • Some lenders may apply different income assessment criteria, such as shading foreign income (i.e., discounting your foreign income by a certain percentage to account for currency risk and tax differences).

Loan to Value Ratio (LVR)

  • Most lenders offer a maximum LVR of around 70-80% for expat home loans. This means you’ll need a deposit of 20-30% of the property’s value.

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  • For high-risk countries or currencies, the LVR might be even lower.

Interest Rates

While certain banks might not extend discounted rates to expatriates, our expertise as specialist mortgage brokers often enables us to negotiate competitive rates below the standard variable rate with select lenders. By leveraging our network and industry insights, we strive to secure favorable interest rates for our expatriate clients.

Interest Rates

While certain banks might not extend discounted rates to expatriates, our expertise as specialist mortgage brokers often enables us to negotiate competitive rates below the standard variable rate with select lenders. By leveraging our network and industry insights, we strive to secure favorable interest rates for our expatriate clients.

Exchange rate Lenders use

Lenders typically employ their own exchange rates, often more conservative than market rates. This can influence borrowing potential, especially for non-preferred currencies. We work with lenders to ensure that exchange rate considerations are factored into your loan application, maximizing your borrowing capacity and minimizing currency-related risks.

Acceptable Currencies

Not all currencies are accepted as foreign income by Australian lenders. The most commonly accepted currencies include:​

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  1. United States Dollar (USD)

  2. Great Britain Pound Sterling (GBP)

  3. Canadian Dollar (CAD)

  4. Hong Kong Dollar (HKD)

  5. Swiss Franc (CHF)

  6. Singapore Dollar (SGD)

  7. New Zealand Dollar (NZD)

  8. Japanese Yen (JPY)

  9. Chinese Renminbi (CNY)

  10. Thai Baht (THB)

  11. United Arab Emirates Dirham (AED)

  12. Euro (EUR)

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If your currency is not listed above, you may still be able to get a loan. Contact us to find out if your specific currency is acceptable.

Documentation Requirements

  • Additional documentation may be needed, including proof of visa status, overseas tax returns, and bank statements from your foreign accounts.

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  • A certified copy of your ID and proof of Australian citizenship may also be required.

Property Types

  • Lenders may have restrictions on the type of property you can purchase. For example, some lenders may not approve loans for certain types of rural properties or high-density apartments.

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  • Ensure the property you’re interested in is eligible for financing under expat home loan criteria.

Foreign Investment Review Board (FIRB) Approval

  • If you are buying the property with a non-Australian citizen or a foreign national, you may need FIRB approval.

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  • FIRB approval is typically required when foreign nationals are involved in purchasing Australian residential property.

Example of

How an Australian Expat Loan Works

  • Let’s say you’re an Australian expat living in Singapore and earning income in Singapore dollars. You decide to purchase a $600,000 property in Sydney. Based on the LVR of 80%, you would need a $120,000 deposit and could borrow $480,000. The lender would require you to provide detailed income verification, including your Singaporean pay slips, employment contract, and tax returns. They might apply a 20% shading to your foreign income to account for exchange rate fluctuations.

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  • Your income would be converted into Australian dollars to assess your borrowing capacity. The interest rate offered might be slightly higher than that for an Australian resident due to the perceived risk. You would need to stay mindful of exchange rate movements, as they could impact your ability to make repayments.

Steps to Secure an Australian Expat Home Loan

​Determine if you meet the lender's criteria for Australian expat loans, including income verification and LVR requirements.

05.

Submit Your Application

Once you have all your documentation in order, submit your loan application to the lender.

01.

Assess Your Eligibility

02.

Gather Documentation

03.

Consult with a Mortgage Broker

04.

Choose the Right Loan Product

Collect all necessary documents, such as proof of income, employment, and tax returns from your country of residence.

An experienced mortgage broker can guide you through the process and connect you with lenders who specialize in Australian expat loans.

Consider the different loan products available, including fixed or variable rates, and choose the one that best suits your financial situation.

06.

Get Pre-Approval

Obtain pre-approval to give you a clear idea of how much you can borrow before you start looking for a property.

07.

Complete the Purchase

Once your loan is approved, finalize the property purchase and ensure all legal and tax obligations are met.

What if I'm self-employed?

Securing loans while self-employed as an expatriate may be limited to a select few lenders. Factors like accountant availability, country of residence, and income currency will influence available options. We have extensive experience working with self-employed expatriate borrowers and can assist you in finding lenders who offer products tailored to your needs.

Getting a home loan with a foreign citizen

Marriage or partnership with a foreign citizen may necessitate a tailored approach in loan applications, with considerations around citizenship, income, and visa status. We have extensive experience assisting borrowers in such situations and can provide guidance on navigating the complexities of joint loan applications involving foreign citizens.

What about my foreign partner's salary?

While most lenders may overlook the income of non-Australian partners, exceptions may arise under specific circumstances. Factors such as visa status, residency, and financial ties to Australia may influence a lender's decision to consider your partner's income in the loan application. We work with lenders who offer flexible policies for borrowers with non-Australian partners and can assist you in finding suitable loan options.

One on title, Two on loan

Structuring loans with one name on the title and two borrowers may mitigate foreign citizen stamp duty. However, thorough assessment of associated risks and lender requirements is essential. We can provide guidance on the implications of this loan structure and assist you in selecting the most appropriate financing option for your needs.

Why Choose
Loanbox?

Navigating the complexities of securing an Australian expat home loan can be challenging, but you don’t have to do it alone. At Loan Box, we specialize in helping Australian expats find the right mortgage solution tailored to their unique needs. Whether you're purchasing your first property or refinancing an existing loan, our team of experts is here to assist you every step of the way.

 

Contact us today at 1300 965 688 or email us at info@loanbox.com.au to discuss your options and get started on your journey to owning property in Australia.

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