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Australia's Top Expat Mortgage Broker
When applying for a home loan as an Australian expat living overseas, we recommend you you work with an experienced mortgage broker. Having someone with expertise and knowledge in facilitating offshore or expatriate loans can lead to a substantially better outcome.
Major lenders can be reluctant with expat borrowers depending on circumstances. We cover all the essential things you need to know if you wish to buy property in Australia.
Our Trusted Lenders
The Expat Finance Application Process
Quantum Finance Australia will explain your eligibility for a home loan. The preliminary assessment begins, which is quite thorough. You'll learn how much you can borrow, and you will be given the top lender options that suit your circumstance. Once you have chosen the lender with the best offer, your application will be submitted.
At this point, you will first have to be pre-approved, which is conditional, depending on the lending policies of the lender. The property you wish to purchase will play a significant role in the approval process.
Most lenders will give you three months for pre-approval. Unless you already know which property to buy, three months should be enough time for you to find a suitable property.
If you need more time, you may be able to request an extension, although you will most likely provide more documents, such as a new set of payslips.
These Three Steps Will Follow
An inspection will be performed on your chosen property.
Takes place if the property you want to buy meets all the guidelines of the lenders.
You will receive an expat home loan offer which you can either accept or reject.
Overseas Loan FAQ's
- How Much Can You Really Borrow as an Australian Expat?
- What About the Interest Rates?
- Are There Other Costs to Worry About?
- Which Currencies Are Accepted for Expat Mortgages in Australia?
- What Proof of Income Do I Need to Produce?
- Can I Still Get a Home Loan as a Self Employed Expat?
- What Happens to Borrowing When You’re Married to a Foreign Citizen?
- Do You Need to Visit the Australian Embassy?
- For those working in a country that does not charge income tax, the lender may use Australian tax rates.
- For expats with foreign loans, repayments may be considered in determining the borrowing power.
- You're allowed to borrow up to 80% of the value of the property.
- However, you need to be an Australian citizen or a permanent resident living in New Zealand or overseas. Your actual income will also be assessed.
- The country where you currently live in
- How much you're earning and in which currency
- The status of your visa
- The exchange rate will also affect how much you will get once you have been approved.
- If the country you're in is not in the preferred list of the lender, that currency may not be accepted.
- It' is important to learn how the exchange rate will be imposed
- There are no negative gearing benefits for expat borrowers.
- Many lenders make it simple by using Australian tax rates instead of the rates of the country where you work.
- Unfortunately, tax rates in Australia are among the highest in the world. That means you could get less than what you need because the taxes will be deducted from the amount you will borrow.
- It will not matter if you are in Singapore or Hong Kong that has very low taxes. Even if you are in the UAE, where taxes are not required, you will still have to pay Australian tax rates.
- Deposit: You may be asked to provide a 20% deposit. The deposit should typically be in the form of genuine savings, such as savings accumulated over the last three months or more. If you provide a big deposit or you are a real estate owner in Australia, your deposit can be the equity on your existing property. An exception is if your parents have a property in the country, and they can act as your guarantor for the home loan. In this instance, you may not need to provide a deposit.
- Leaders Mortgage Insurance: If you are an Australian living overseas; you are not eligible for Lender Mortgage Insurance (LMI).
- Others: You will also have to pay for stamp duty, mortgage set up costs, legal fees, and other property purchasing costs.
- The property that you wish to buy is valued at $500,000. You are allowed to borrow 80% of that value.
- You will then have to provide $100,000, which is for the deposit.
- For this amount, the stamp duty is $20,000 and the transfer fee is around $268.20.
- You still have to add mortgage registration, which is $178.20, along with legal and other fees. The figures here will depend on the lender.
- US dollar
- Hong Kong dollar
- Canadian dollar
- Singapore dollar
- New Zealand dollar
- Great Britain pound sterling
- Swiss franc
- Japanese yen
- Bahrain dinar
- Fijian dollar
- Indian rupee
- Kuwaiti dinar
- Malaysian ringgit
- Norwegian krone
- Oman rial
- Philippine peso
- Saudi Arabian riyal
- South Korean won
- Thai baht
- Vietnamese dong
- You will most likely be asked to give your bank statements for the past three months, which should show your salary is deposited into your account.
- You will also have to own a valid work visa for the verification process.
- If you're a dual citizen or you have proof that you can work in the country you're in, you may no longer have to provide a work visa.
- Tax returns for the business and the owner for at least two years
- Six months' worth of bank statements
- Income verification letter signed by an accountant
- Some lenders may take you and your partner as Australian citizens.
- Some will consider you both as investors from another country.
- Other lenders pick the one with the higher income as the principal borrower and nationality.
- Your partner holds a valid Australian visa.
- Your partner lives in Australia, particularly when you send out the application.
- The other person has relatives in Australia.
- You two are legally married or in a de facto relationship for more than two years.
- You have children together.
Choose a Mortgage Broker That Specialises in Expats
The best way for you to make sure you get approved is to hire a mortgage broker. This professional will help you with your application so that it is tailored to meet the requirements and guidelines of the lender.
It is also worth knowing the following facts:
- Lenders often assess your income while considering Australian tax rates. Therefore, your borrowing power may be reduced, particularly if the country where you are staying has low tax rates.
- Some lenders have a limited number of countries and currencies they accept.
- Lending policies for Australian expats are not always easy to understand. It is why you need guidance from a finance professional.