Purchasing property in Australia can be a complex process for Australian expats living abroad in Hong Kong. From navigating loan eligibility to gathering the required paperwork, financing an Australian home loan from overseas poses unique challenges.
If you are an Aussie expat in Hong Kong who wants to buy property in Australia, this FAQ section will answer the top questions about home loans for Australian expats in Hong Kong.
Get a free Australian mortgage assessment today.
FAQs about Australian Home Loans for Aussie Expats in Hong Kong
As an Australian citizen living in Hong Kong, you can qualify for an Australian home loan to purchase property, provided you meet the lender’s eligibility criteria regarding income, assets, credit history etc. However, more documentation is required to verify foreign income sources.
Documents required for an Australian home loan application from Hong Kong include income statements, ID, living expenses, the property purchase contract, and potentially an Australian Power of Attorney authorization for legal matters.
If you have dual Australian-Hong Kong citizenship, you may qualify for an Australian home loan. However, some lenders treat dual citizens as foreign borrowers which can limit options, so find a lender that recognizes your Australian citizenship.
Australian expats in Hong Kong can access variable, fixed and interest-only home loans, with Australian citizens able to access better rates, while HK citizens may face higher interest rates from Australian lenders.
While a 20% deposit is recommended, Australian expats may qualify for 5-10% deposit loans from Hong Kong. However, HK citizens usually need a 20% minimum deposit as foreign buyers.
Yes, as an Australian expat you can access standard Australian home loan interest rates. However, HK citizens will likely pay higher mortgage rates from Australian lenders.
Australian expats pay standard resident stamp duty rates when purchasing property in Australia, with no surcharge for joint purchases with a Hong Kong-based spouse. However, eligibility for first home buyer concessions depends on overall property ownership – expats who own a home in Hong Kong may not qualify for first home exemptions in Australia, even if it’s their first property there.
The key takeaway is that while joint spousal purchases don’t incur surcharges, owning property in Hong Kong can exclude Aussie expats from first home buyer stamp duty concessions in Australia.
Many lenders will use 100% of foreign income when assessing borrowing capacity. However, some apply an 80% discount to HK earnings when calculating an expat’s serviceability.
Lenders consider all living expenses, debts, school fees plus costs associated with buying and holding the property when determining an expat borrower’s affordability.
No, HK buyers will be treated more conservatively by Australian lenders in terms of borrowing capacity. However, strong HK income can still provide reasonable borrowing power.
A favorable HKD exchange rate can positively influence affordability assessments for Australians purchasing property from Hong Kong. However, impact varies between lenders.
It might take you about 1-2 additional weeks for foreign income verification when applying for an Australian home loan from Hong Kong compared to local applicants.
Some Australian lenders require that expats have a Power of Attorney in place to manage legal matters relating to their home loan when applying from overseas. It’s important to check individual lender requirements regarding Power of Attorney authorization before starting your application as an expat borrower.
Australian citizens are exempt from FIRB even when abroad. But HK citizens need FIRB approval which can prolong the purchase process.
There may be Australian tax obligations on rental income and capital gains tax when selling as a non-resident. However, the double taxation agreement between HK and Australia aims to avoid double taxation.
Yes, lenders can consider rental income from the property to assess borrowers, improving serviceability. However, strict criteria apply including providing past rental receipts.
Appointing an experienced Australian property manager is recommended to oversee the investment, conduct maintenance, screen tenants and manage compliance issues.
In some states, Aussie expats may qualify for a land tax exemption if the property is their main residence or if they are only temporarily living abroad. Eligibility varies.
Yes, you can get pre-approval from some lenders before returning to Australia. This provides an indication of your borrowing power and helps speed up the process.
Banks in HK don’t offer mortgages for Australian property. You need to source loans from Australian lenders as a non-resident applicant.
Hong Kong citizens looking to purchase property in Australia must obtain FIRB approval, have a 20% deposit, strong credit history, proof of income, meet age requirements, and satisfy other eligibility criteria as foreign property investors.
Over 25,000 Australian citizens are estimated to live in Hong Kong, forming one of the largest groups of Australian expats worldwide.
Areas like Discovery Bay, Shek O, Clearwater Bay, and Repulse Bay are popular with Australian expat families. Many also live on Hong Kong island.
Major groups include the Australian Association and AustCham Hong Kong which hold events and networking activities catering to Aussie expats.