Australian Expat Home Loan

Can Expatriates Obtain a Mortgage in Australia?

Absolutely, expatriates, or expats for short, can apply for an Australian expat home loan. Typically, they can borrow as much as an Australian citizen living in Australia could.

How Much is Available to Borrow?

Australian citizens living abroad or in New Zealand can borrow up to 90% of the property value.

Self-employed borrowers residing overseas might get up to 80% of the property value. This is evaluated on an individual basis.

Your residing country, earned currency, and visa status can influence the borrowing amount.

Is Approval Guaranteed?

The process can be intricate due to the different policies of lenders, such as consideration of your income, acceptance of different currencies, and other contributing factors. Discussing your individual circumstances in detail with our experienced Australian expat mortgage broker is advised for more precise information.

Available Interest Rates:

Competitive rates are offered, and more details can be provided upon contact with OzBroker.

Which Lenders Are Available for Expat Mortgage in Australia?

A variety of bank and non-bank lenders are available, contact OzBroker for detailed information.

Do I Qualify?

OzBroker can assist you in buying a property anywhere in Australia, helping you discover your qualifications for a loan.

Will I Face Higher Interest Rates?

It’s possible, especially if you are unable to provide evidence of your foreign income. However, OzBroker, as a specialised Australian expat mortgage broker, often successfully negotiates substantial discounts with some lenders.

Which Lenders Assist with Expat Mortgages?

OzBroker has a calculator to help assess eligibility and find lenders who can assist expats in buying property in Australia.

Will My Foreign Currency be Accepted?

Different currencies have different acceptances and restrictions. It’s essential to check if your currency is accepted. OzBroker deals with a variety of currencies and can often find solutions for those not listed.

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:

  • United States Dollar (USD)
  • Great Britain Pounds Sterling (GBP)
  • Euro (EUR)
  • Singapore Dollar (SGD)
  • Canadian Dollar (CAD)
  • United Arab Emirates Dirham (AED)
  • 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?

You may still be able to qualify for a mortgage although restrictions and conditions may apply, such as restricting your borrowing power to 80% of the property value (Loan To Value Ratio).

These currencies may include:

  • Bahrain Dinar (BHD)
  • Bruneian Dollar (BND)
  • Danish Krone (DKK)
  • Fijian Dollar (FJD)
  • Indian Rupee (INR)
  • Indonesian Rupiah (IDR)
  • Kuwaiti Dinar (KWD)
  • Macau Pataca (MOP)
  • Malaysian Ringgit (MYR)
  • Norwegian Krone (NOK)
  • Oman Rial (OMR)
  • Papua New Guinean Kina (PGK)
  • Philippine Peso (PHP)
  • Qatari Riyal (QAR)
  • Samoan Tala (WST)
  • Saudi Arabian Riyal (SAR)
  • Solomon Island Dollar (SBD)
  • South African Rand (SAR)
  • South Korean Won (KRW)
  • Sri Lankan Rupee (LKR)
  • Taiwan New Dollar (TND)
  • Thai Baht (TBH)
  • Tongan Pa’anga (TOP)
  • Turkish Lira (TRY)
  • Vanuatu Vatu (VUV)
  • Vietnamese Dong (VND)

If your currency is not listed then please contact us as some of our lenders accept almost any currency.

Is a Deposit Required?

Typically, a 10% deposit along with additional funds to cover various property purchasing costs is required, unless there are other means like having parents act as guarantors.

How to Verify My Income?

Providing payslips, foreign tax returns, and three months of bank statements showing your salary deposits are usually required. OzBroker has specialists who can assist with documents in different languages, and for self-employed individuals, more specific documentation is required.

Issues with Tax Rates:

Some lenders use Australian tax rates, which are among the highest, potentially affecting your borrowing power, especially if residing in low-tax countries. However, OzBroker has lenders who use foreign tax rates allowing for more borrowing power, depending on the provision of sufficient income evidence.

Are Offers Limited to Certain Countries?

Yes, the offer is applicable to certain countries. Contact OzBroker for the latest details on availability and conditions.
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Earning in Multiple Currencies – What’s the Impact?

It’s usual for many Australians living overseas to receive income in more than one currency, especially those employed by international companies with branches across the globe.

If you earn in currencies recognized by certain banks, these can be considered when applying for a loan through OzBroker. But remember, different exchange rates apply to different currencies, affecting your total borrowing capacity.

Don’t fret if your earning currencies aren’t recognized; we might still find you a suitable Australian expat home loan.

How Much Can You Borrow?

Calculating your borrowing limit is intricate due to factors like exchange rate fluctuations, foreign tax rates, and repayments on foreign debts. The borrowing process for Australian expat home loans varies with lenders, but most will consider a portion of your real income, apply Australian tax rates, ignore negative gearing benefits, and impose loaded repayments on foreign loans.

Currency Conversion by Lenders

Lenders often use their exchange rates—usually more conservative ones. If your currency isn’t recognized, lenders might reject or apply a reduced rate from XE Live Exchange Rates, impacting your borrowing power significantly.

Consult with us at OzBroker, and we can discuss whether the lenders are open to negotiation regarding currency exchange methods.

Loan Application with a Foreign Citizen Partner

Being in a relationship with a foreign citizen can influence lenders’ perceptions of your application, affecting the income considered and deposit required. But, selecting a lender with favourable policies can help you avoid higher interest rates and other issues.

Inclusion of Foreign Partner’s Salary

Generally, if your partner isn’t an Australian citizen or permanent resident, their income is overlooked. However, we at OzBroker have managed to secure approvals by making exceptions in numerous cases.

Structuring Your Loan

When involving a non-Australian citizen in a home loan, foreign citizen stamp duty may apply. However, intricate and high-risk structures might help in avoiding it, especially when only the expat or Australian citizen is on the loan title.

Choosing Your Lender Wisely with OzBroker

Many Australians living overseas struggle with loan approval due to stringent requirements and systems ill-equipped to handle foreign details. That’s where we step in. At OzBroker, we navigate you through these complexities, ensuring the most suitable solutions for your circumstances.

Other Important Considerations

Having a Power Of Attorney (POA) is often useful for signing documents on your behalf when you’re overseas. It’s crucial to understand each lender’s requirements regarding POA before deciding.

Regardless, visiting the Australian embassy is essential to certify your ID. Each embassy might charge varying service fees, which can sometimes be substantial, so checking the specific fee schedule for your residing country is advisable.

Australian government approval is usually not needed, as per the FIRB guidelines. Also, Australians living abroad are typically exempt from the foreign stamp duty surcharge. But, the rules may differ, so confirming with your state revenue authority is essential, especially if your partner is a non-Australian citizen.

When to Invest in Australian Real Estate with OzBroker

The real estate market is unpredictable, and timing it is not as crucial as the time spent in it. Historically, Australia has experienced low volatility since 2001, making quick investments in growth markets beneficial in the long run.

Why Choose OzBroker?

We are your trusted Australian expat mortgage broker specialising in assisting individuals overseas to secure property in Australia. Here’s why we are the best choice for you:

  • Expertise in helping Australians or dual citizens living abroad invest in the Australian property market.
  • A broad network with over 50 banks & lenders, enabling us to choose the one that best suits your situation.
  • We mostly offer our services free of charge.
  • We mitigate the challenges associated with loan application processes, ensuring a smoother experience for you.

To discuss your expat mortgage in Australia, reach out to our expert expat mortgage brokers at OzBroker by calling us or filling in our free assessment form today!

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