Arab Bank Australia Home Loans for Expats
Looking for an Australian home loan as an expat or foreign buyer? Arab Bank Australia offers mortgage options for overseas borrowers purchasing property in Australia. This detailed Arab Bank Australia home loan review covers interest rates, features, eligibility criteria, and application process for expats.
- Borrow up to 80% of the property value
- Apply and manage loans digitally as an Australian expat living overseas
- Access to Sharia-compliant banking options
Arab Bank Australia Home Loan Options
Arab Bank Australia provides a variety of home loan products suitable for expats looking to purchase property in Australia.
Variable Rate Home Loans
Fixed Rate Loans
First Home Buyer Loans
Arab Bank's standard variable rate home loans offer flexibility for borrowers. With a variable rate, the interest rate fluctuates based on market conditions. This means repayments can increase or decrease over the loan term. Arab Bank's discounted variable rates currently start from 4.14% p.a.
Key features include unlimited additional repayments, 100% offset accounts to save on interest costs, and no ongoing monthly fees. The variable rate product provides versatility to manage economic changes.
Arab Bank also offers fixed rate home loans allowing borrowers to lock into stable interest rates. Fixed terms range from 1 to 5 years. Current Arab Bank fixed rates start from 4.99% p.a. for a 2 year fixed period. While fixed, repayments remain steady and predictable. But economic changes mean fixed rates sometimes cost more over the full term compared to variable rate loans.
There are also early exit fees for breaking a fixed loan before the end of the term. But fixed rates provide certainty during their set period.
First home buyers are a key focus for Arab Bank Australia. They offer specific products to help first timers purchase their first property. Arab Bank's first home buyer loans allow lower deposits from just 5% for eligible applicants. Their "Five2Buy" loan caters to buyers with a 5% deposit.
Discounted variable rates apply to first home buyer loans, currently from 4.04% p.a. Relaxed lending criteria also assists new buyers qualify for their first mortgage.
Arab Bank Australia Home Loan Review
Here are the pros and cons of Arab Bank Australia home loans to consider.
| Pros | Cons |
|---|---|
Online applications for convenience even when overseas. | 20% minimum deposit required for standard variable loans. |
Offset accounts to save on interest by linking mortgage and savings. | Added fees for fixed rate loans. |
Phone support from dedicated Arab Bank expat lending team. | Refinancing to a new lender in the future may be complex. |
No ongoing annual fees or monthly account fees. | Large loans undergo more scrutiny. |
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
Arab Bank Australia Home Loan Features
Arab Bank Australia home loans come with a variety of features and benefits.
| Feature | Details |
|---|---|
Online Application | Complete loan application and document submission online. |
Switching Ability | Switch between variable and fixed rate loans. |
Additional Repayments | Option to make extra repayments and pay loan down sooner. |
Redraw Facility | Access any additional repayments you've made. |
Offset Account | Link offset savings account to mortgage to reduce interest. |
Expat Information | No minimum income requirements for Australians abroad. |
Facts About (LENDER)
Arab Bank Australia is part of the larger Arab Bank group founded in 1930.
Caters to Arabic communities & expat borrowers and offers sharia-compliant Islamic banking options.
Operates 10 branches in Sydney, Melbourne and Perth.
How Do I Apply?
Apply online or visit an Arab Bank branch:
Online Application
- Go to Arab Bank Australia’s website and click on “Home Loans”.
- Browse home loan options and use an online calculator.
- Start application online and provide personal and financial details.
- Upload scanned copies of supporting documents.
- Get a decision in principle within 48 hours.
In Branch Application
- Book an appointment with an Arab Bank lending manager.
- Discuss requirements and supply documents to the lender.
- Get conditional approval during appointment.
- Arrange property valuation after approval.
Who is Eligible?
To qualify for an Arab Bank Australia home loan as an expat, typical requirements include:
- Australian citizenship, residency or temporary visa.
- Minimum 20% deposit for standard loans.
- Good credit rating with no recent defaults.
- Stable income and employment.
- Existing financial commitments must be manageable.
What Documents Do I Require?
When applying for an Arab Bank Australia home loan, have these documents ready:
Proof of Identity
Such as a passport, driver's licence, and birth certificate or citizenship certificate to confirm status.
Proof of Income
Include recent payslips covering a minimum of 2 months, bank statements showing salary deposits, employment contract, and your last two years of tax returns or foreign income statements.
Assets and Liabilities Statement
List all major assets like properties, vehicles, cash savings along with their estimated values. Also list current debts and liabilities including credit cards and other obligations.
Deposit Evidence
Provide bank statements or fixed term certificates showing your deposit funds and savings history.
Signed Contract of Sale
Once you have a property, supply a signed contract of sale.
Property Valuation Report
Arab Bank will arrange for a valuation to formally confirm the property's value once the sale contract is signed.
Related Products from Arab Bank Australia
Construction Loans
Arab Bank’s construction loans provide financing to build a new residential or commercial property from the ground up. Funds are dispersed in stages based on the project’s progress against agreed construction milestones. Borrowers only pay interest on the amounts drawn during the build. Upon completion, the construction loan converts to a standard variable or fixed rate mortgage. Construction loans offer flexibility to complete a custom construction project.
Investment Property Loans
Arab Bank has specific investment property loans for financing residential or commercial property purchases aimed at generating rental income. Features include interest-only options, lines of credit for additional funding, and tax deductibility of interest payments. With higher LVRs allowed, investment property loans can maximise leverage for property investors.
Land Loans
Arab Bank land loans provide financing to purchase vacant land to then construct a property on. This allows borrowers to secure the land first before needing financing to complete construction. Land loan terms are usually up to 5 years to give time to get development approvals before converting to a construction loan.
Bridging Loans
Bridging loans from Arab Bank provide short-term financing to complete a property purchase when waiting for funds from the sale of an existing property. This bridges the gap between selling and buying. Bridging loans are typically repaid within 1-12 months once the borrower’s previous property sale completes.
Ready to Apply for an Arab Bank Australia Home Loan?
Arab Bank Australia provides home loan solutions tailored for expats and foreign buyers. Their online applications and multi-lingual support makes financing property in Australia accessible. Speak with one of our expat mortgage brokers today about your Arab Bank Australia home loan options.
Other Australian Lender Reviews
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
FAQs About (LENDER)
What is the minimum deposit for an Arab Bank home loan?
The minimum deposit is usually 20% of the property value. First home buyer loans allow lower deposits from 5%.
Does Arab Bank require foreign income verification for expats?
Yes, Arab Bank will verify foreign income for expats with documents like foreign tax returns. No minimum income set.
What fees apply for Arab Bank Australia home loans?
No ongoing annual fees but monthly fees may apply for basic products. Fixed rate loans have exit fees if broken early.
How long do home loan approvals take with Arab Bank?
Online applications receive conditional approval within 48 hours. In branch applications can get approval during appointment.
Can Arab Bank loans be approved if living overseas?
Yes, Arab Bank allows expats to apply and get approved for loans while living abroad.
Does Arab Bank offer Islamic finance home loans?
Yes, Arab Bank provides sharia-compliant Islamic home finance options tailored for Muslim borrowers.
Is refinancing available on Arab Bank mortgages?
Yes, existing Arab Bank customers can apply to refinance their current mortgage to get better rates or terms.
Can Arab Bank handle home loans in multiple foreign currencies?
Yes, Arab Bank can facilitate home loans in various foreign currencies for expat borrowers paid in other currencies.
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