Frequently Asked Questions: 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, proof of identify and residency/visa status, living expenses, the property purchase contract, and potentially an Australian Power of Attorney authorisation 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 recognises 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 favourable HKD exchange rate can positively influence affordability assessments for Australians purchasing property from Hong Kong. However, impact varies between lenders.

The entire home loan process can take anywhere from 2-3 months when applying for an Australian home loan from Hong Kong.

This includes:

• 1-2 weeks for foreign income verification
• 2-4 weeks for loan assessment
• 4-6 weeks for settlement

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 authorisation 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.

As of 2024, there are approximately 100,000 Australians living in Hong Kong. This community includes a diverse range of individuals, many of whom are attracted to Hong Kong for its career opportunities, particularly in finance, technology, education, and creative fields. The vibrant cultural scene and the city’s strategic location in Asia also make it an appealing destination for Australian expatriates.

The Australian community in Hong Kong is well-supported by various organisations and social groups, such as the Australian Association of Hong Kong, which helps new arrivals acclimate and provides numerous networking opportunities and events​. This robust network helps Australian expats integrate into local society and maintain a sense of community while living abroad.

Australian expats in Hong Kong are spread across various districts, with some areas being particularly popular due to their amenities, international schools, and vibrant communities.

Here are the key areas where Australian expats tend to reside.

• Mid-Levels: Located on Hong Kong Island, Mid-Levels is a favourite among expatriates due to its proximity to Central, the main business district, and its range of modern amenities, including international schools and supermarkets. The area offers a mix of high-rise apartments and green spaces like Hong Kong Park.

• Discovery Bay: This residential area on Lantau Island is known for its family-friendly environment, open spaces, and a strong sense of community. Discovery Bay has many recreational facilities and international schools, making it ideal for expatriate families.

• Pok Fu Lam: Situated on the southwestern side of Hong Kong Island, Pok Fu Lam is another popular area for expatriates, including Australians. It offers a quieter, more suburban feel compared to the bustling city centre, with access to the University of Hong Kong and several international schools.

• Sai Kung: Known as the “back garden of Hong Kong,” Sai Kung is popular with expatriates who prefer a more rural and relaxed lifestyle. It offers a range of outdoor activities, such as hiking, boating, and access to beautiful beaches. The area is also home to several international schools.

• Southside (Repulse Bay, Stanley, and Tai Tam): The southern part of Hong Kong Island, including Repulse Bay, Stanley, and Tai Tam, is known for its scenic views, beaches, and luxurious residential options. This area attracts many expatriates due to its relaxed atmosphere and high-quality international schools.

These areas are popular among Aussie expats for their balance of lifestyle, convenience, and community support, making them ideal for both individuals and families.

Several active Australian expat communities in Hong Kong provide social, professional, and cultural support for Australians living in the city.

Here are some of the key communities.

• Australian Association of Hong Kong (AAHK): Founded in 1954, AAHK is one of the oldest expat communities in Hong Kong. It aims to connect Australians and promote Australian culture through various social events, networking opportunities, and cultural activities. They organise events such as Australia Day celebrations, dragon boat racing, and regular social gatherings.
• Australian Chamber of Commerce in Hong Kong (AustCham): AustCham is a professional organisation that supports Australian businesses and professionals in Hong Kong. It provides networking opportunities, business forums, and advocacy on issues affecting the Australian business community. The chamber also hosts events, seminars, and social gatherings.
• InterNations Hong Kong: InterNations is a global expat network that has a strong presence in Hong Kong, with a specific subgroup for Australians. They organise regular social events, cultural activities, and professional networking opportunities, helping Australians connect with each other and with other expat communities.
• Hong Kong Young Professionals Network (HKYPN): This network focuses on younger Australian professionals in Hong Kong, providing opportunities for networking, professional development, and social events. They often collaborate with other expat groups and chambers of commerce to broaden their reach.
• Australian International School Hong Kong (AISHK) Community: The AISHK community is centred around the Australian International School, which serves many Australian families. The school community is active in organising events, supporting new families, and providing a connection to Australian education and culture.

These communities and organisations provide a support network for Australians in Hong Kong, helping them adjust to life in the city, maintain cultural ties, and build professional and social connections.