So you are an Australian citizen or an Australian permanent resident (PR Visa holder) living and working overseas and looking at buying or refinancing a property back here in Australia?
We look after lots of time poor Aussies needing help with tailored expat and non resident lending needs from our panel of over 30 major banks and lenders.
The following key questions provides a high-level summary of the available policies generally applied by the major Australian banks and lenders who offer mortgages to Australian expats and non resident with permanent residency status.
What is the maximum LVR that an Australian Expat can get?
The Maximum loan to valuation (LVR) ratio is generally 70% or 80% of a property’s value (some lenders may allow higher up to 90 or even 95% but there are caveats to this which are usually higher rates and mortgage insurance being applied).
How much foreign income can I use?
Your overseas income is usually shaded by 20% for currency risk purposes before converting to Australian dollars ($AUD). The resultant figure is then hypothetically ‘taxed’ at Australian tax rates to determine what net income (after tax income is available to support your loan). This is applied because Australian lenders are generally not resourced to deal with understanding every countries different tax systems.
What if I earn tax-free income in the UAE?
If you earn tax-free income in the United Arab Emirates (UAE) or similar tax jurisdictions – you may be in luck then. In many circumstances, we have a handful of lenders who will not apply hypothetical Australian tax rates to your expat tax free income in places like Dubai and Abu Dhabi. This will usually result in you being able to secure a larger loan size than what most Australian banks would otherwise approve.
Can I use bonus income as an expat?
This depends heavily on which lender is being proposed and how often the bonus income is paid. It can be difficult to use for servicing purposes when it comes to expat and non-resident lending.
How much income do I need to secure an expat loan approval?
Because of the rules above that most lenders apply, your taxable income generally needs to exceed $250,000 AUD PA equivalent. Shading due to currency risk and different tax assessment rules can significantly reduce your borrowing capacity as an expat. If your income is less than this it is often very difficult for us to meet current expat lending rules even for modest loan sizes.
What currency do I need to earn to be eligible for an Australian expat home loan?
Most lenders require that your income is earned in primary currencies like;
- United States Dollars (USD)
- Pound Sterling (GBP)
- European Euros (EURO)
- Singapore Dollars (SGD)
- Hong Kong Dollars (HKD)
- Japanese Yen (JPY)
A smaller list of lenders still accepts other countries depending on individual lender policies and includes but are not limited to;
- Indian Rupee (INR)
- Indonesian Rupiah (IDR)
- Vietnamese Dong (VND)
- Chinese Yuan (CNY) / Renminbi (RMB)
- Emirati Dirhams (AED)
What if my payslips and other supporting information are in a foreign language?
If your support documents are not in English they must be translated into by an accredited translator (most Australian lenders accept NAATI as a standard translation service).
What if I don’t have Australian Citizenship or PR Visa status – can you help me?
Unfortunately if you do not hold Australian citizenship, PR residency or New Zealand citizenship we are currently unable to assist you based on our available lending policies.
I am a self-employed expat – can I secure loan approval?
Being self-employed has many benefits but borrowing money as a self-employed expat can greatly reduce the number of lenders who may be able to support your plans. While not impossible we may be able to assist you especially if your tax returns are up to date and are published in English.
I want to know more about expat mortgages – how do we meet?
Want to get some tailored mortgage advice from someone who knows what they are talking about then feel free to book a time here for a quick 15 minute chat or jump onto the chat box on our website now (it will confirm if one of our brokers are online for a chat).
Of course, you can also call us in the office on +61 3 9939 7576 for a chat during normal business hours. If we miss your call leave a message and one of our team will usually get back to you within one or two business hours.