Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: June 10, 2026 View profile →

Lenders Who Accept Foreign Income in Australia

Imagine this: you’re one of over one million Aussie expats living abroad — earning well, building your career, and now dreaming of owning a slice of home. That Sydney apartment near the beach, or a family house in Brisbane, finally feels within reach. But then reality hits: how do you get a mortgage in Australia with an overseas income?

You’re not alone. As of 2025, Australian lenders are tightening policies, yet demand from expat buyers has surged by over 20% year-on-year, especially across Southeast Asia, the UAE, and the UK. The opportunity is there — but the rules are complex.

This guide is your roadmap. We break down how lenders assess foreign income, how exchange rates and tax treatment affect your borrowing power, and which banks and expat-specialist lenders actually approve these loans. By the end, you’ll know exactly what it takes to turn your offshore earnings into an Australian home.

How Lenders View Your Overseas Income

Australian lenders see extra risk with foreign income. This is due to currency fluctuations and difficulties in verifying your employment details.

To manage this risk, lenders use a method called “income shading”. This means they only consider around 60% to 90% of your gross foreign salary.

Shading creates a buffer against exchange rate changes. The exact shading percentage depends on your income type and the currency you are paid in.

Knowing how lenders in Australia that accept overseas income apply this principle is key to your application’s success.

PAYG (Salaried) Income

Lenders find salaried or PAYG income the easiest to assess. It’s stable and simple to verify with standard documents.

You’ll need to provide several documents to prove your PAYG income. These typically include a copy of your current employment contract.

You’ll also need your two or three latest payslips. Finally, provide 3-6 months of bank statements showing your salary deposits.

Self-Employed & Foreign Business Income

Getting a mortgage with self-employed income is much harder. This also applies to income from a foreign-registered business.

Few Australian lenders accept this income type. Verifying financials across countries is complex. Those who do have strict requirements.

You’ll likely need at least two years of full personal and business tax returns.

You may also need two years of business financial statements and up to twelve months of business bank statements.

An accountant’s verification letter is often required. Some lenders might offer a specialised “low doc” loan, but these usually have higher interest rates.

Bonuses, Commissions & Overtime

Lenders are extra cautious with variable income. This includes bonuses, commissions, and overtime pay.

This income is not guaranteed, making it riskier. It is almost always shaded more heavily than your base salary.

Many lenders will only use 80% or less of it in their calculations. To consider it at all, they require proof of consistency.

You must typically show you have received this income for at least two continuous years.

Rental Income

Lenders also assess rental income from your investment properties. This applies to properties in Australia and overseas.

They won’t use 100% of the gross rent. A standard policy is to shade rental income by 20% to 25%. This accounts for costs like management fees and vacancies.

The rules for foreign rental income vary even more. Some lenders might ignore it completely. Others may consider a portion to help offset the property’s mortgage debt.

👉 Check out: Rental Income Mortgage in Australia for Expats

👉 Learn more: Income Verification for Mortgages

How Lenders Treat Foreign Tax

Beyond shading, the lender’s tax treatment can slash your borrowing power. This is a crucial and often overlooked factor.

This particularly affects Australians in low or zero-tax countries. Think of places like the UAE, Singapore, or Hong Kong.

Many major banks apply Australian PAYG tax rates to your gross foreign income. They do this regardless of the actual tax you pay. This can severely reduce how much you can borrow.

Finding lenders in Australia that accept foreign income with favourable tax policies is a critical strategic move.

Let’s look at an example. An expat in Dubai earns a tax-free income of $200,000 AUD.

Lender A (Applies Australian Tax): This lender takes the $200,000 AUD and applies a notional Australian tax rate of about 35% ($70,000). They then base your borrowing capacity on a net income of just $130,000 AUD.
Lender B (Uses Foreign Tax Rate): This specialist lender accepts that the income is tax-free. They calculate your borrowing capacity based on the full $200,000 AUD.

The difference is substantial. Lender B could offer a loan hundreds of thousands of dollars higher than Lender A.

Only a select few lenders will use your actual foreign tax rate. They usually require proof of tax being withheld on your payslips.

👉 Calculate your borrowing power: How Much Can You Borrow?

Does Your Currency Matter? The Tiered System

The currency of your income is a primary filter for lenders. They don’t view all global currencies equally.

Currencies are categorised into tiers based on their stability and liquidity. This system directly impacts which lenders will consider your application.

The table below shows how lenders typically categorise various currencies.

Currency Name	Currency Code	Typical Tier	Notes
United States Dollar	USD	Tier 1 / Preferred	Widely accepted by most lenders offering expat loans.
Great British Pound	GBP	Tier 1 / Preferred	Widely accepted by most lenders offering expat loans.
Euro	EUR	Tier 1 / Preferred	Widely accepted by most lenders offering expat loans.
Singapore Dollar	SGD	Tier 1 / Preferred	Accepted by a broad panel of lenders; very common for expats.
Hong Kong Dollar	HKD	Tier 1 / Preferred	Accepted by a broad panel of lenders.
Canadian Dollar	CAD	Tier 1 / Preferred	Widely accepted by most lenders.
New Zealand Dollar	NZD	Tier 1 / Preferred	Widely accepted by most lenders.
Swiss Franc	CHF	Tier 1 / Preferred	Accepted by a good selection of lenders.
Japanese Yen	JPY	Tier 1 / Preferred	Accepted by many lenders, though some may classify as Tier 2.
Chinese Renminbi	CNY	Tier 1 / Preferred	Accepted by a good selection of lenders, though some may classify as Tier 2.
United Arab Emirates Dirham	AED	Tier 2 / Secondary	Accepted by a smaller panel of specialist lenders.
Qatari Riyal	QAR	Tier 2 / Secondary	Accepted by a smaller panel of specialist lenders.
Saudi Arabian Riyal	SAR	Tier 2 / Secondary	Accepted by a smaller panel of specialist lenders.
Thai Baht	THB	Tier 2 / Secondary	Accepted by a smaller panel of specialist lenders.
South African Rand	ZAR	Tier 2 / Secondary	Accepted by a smaller panel of specialist lenders.
Malaysian Ringgit	MYR	Tier 2 / Secondary	Accepted by a smaller panel of specialist lenders.
Indian Rupee	INR	Tier 2 / Secondary	Accepted by some lenders, but often with stricter LVR limits.
Other Currencies	Various	Specialist Case	Requires a specialist mortgage broker to find a suitable lender.

These tiers are explained in more detail below.

Tier 1 (Preferred) Currencies

Tier 1 includes major global currencies. Financial institutions consider them the most stable and reliable.

If you earn in a Tier 1 currency, you have more lender options. The income “shading” will also be less aggressive.

Lenders typically accept between 80% and 100% of gross income in these currencies.

Commonly accepted Tier 1 currencies include:

United States Dollar (USD)
Great British Pound (GBP)
Euro (EUR)
Singapore Dollar (SGD)
Hong Kong Dollar (HKD)
Canadian Dollar (CAD)
New Zealand Dollar (NZD)
Japanese Yen (JPY)
Chinese Renminbi (CNY)

Tier 2 (Secondary) Currencies

Tier 2 currencies are still accepted by some lenders. However, they are seen as having a higher risk of volatility.

The income shading applied is more significant for these currencies. Lenders often only consider between 60% and 80% of the gross income.

This reduces your borrowing power compared to earning in a Tier 1 currency.

Commonly accepted Tier 2 currencies include:

United Arab Emirates Dirham (AED)
Qatari Riyal (QAR)
Saudi Arabian Riyal (SAR)
Thai Baht (THB)
South African Rand (ZAR)
Malaysian Ringgit (MYR)
Indonesian Rupiah (IDR)
Philippine Peso (PHP)
South Korean Won (KRW)

Currency also affects how much of your income lenders will use. This is a key factor for any lender that accepts overseas income.

List of Australian Lenders Who Accept Foreign Income

Finding Australian lenders who accept foreign income is tough. Their policies change often and are not always clear.

A bank’s public website might say one thing. But their policies for mortgage brokers can be different.

A bank’s willingness to accept a complex loan often depends on how it is submitted. An expat calling a bank’s public hotline may be told no.

A broker, however, could get a loan from the same bank. This makes a detailed breakdown of lender policies essential.

The Big Four Banks

Australia’s major banks have varying appetites for expat loans. These are often available exclusively through their broker networks.

Here’s a quick overview of the big four banks and their policy towards foreign income.

Lender	Max LVR (Expat)	Key Accepted Currencies	Stated Policy (Direct vs Broker)	Key Features / Restrictions
ANZ	Up to 80%	Most major currencies accepted	Available via broker channel	Does not accept foreign rental income; challenging servicing assessment
CBA	Up to 70% (higher for some currencies)	Tiered system (e.g., GBP, USD, EUR are preferred)	Available via broker channel	Applies Australian tax rates to foreign income; requires 30% deposit for most
NAB	Up to 80%	Most major currencies accepted	Direct channel says no; Broker channel says yes	Strictest servicing assessment of Big Four; applies Australian tax rates
Westpac	Up to 80%	Most major currencies accepted	Direct channel says no; Broker channel says yes	Offers same rates as residents; has specific policies for self-employed

ANZ is often seen as flexible, ANZ may lend up to 80% of the property value (LVR). They accept a wide range of currencies and offer standard loan products. However, they have a policy of not accepting foreign rental income.

CBA uses a tiered system for currencies which affects the maximum LVR. For most expats, CBA lends up to 70% LVR, requiring a 30% deposit. A major drawback is their policy of applying Australian tax rates to foreign income.

NAB’s website says home loans are not for overseas residents. Through brokers, however, they are known to lend up to 80% LVR. They are known for having a strict serviceability assessment and also apply Australian tax rates.

Similar to NAB, Westpac’s direct information says no to non-resident borrowers. Through brokers, they may lend up to 80% LVR and accept most currencies. A key advantage is their defined policies for self-employed applicants.

International Banks in Australia

These banks have a global presence. Yet, their Australian mortgage policies can be surprisingly conservative.

HSBC: HSBC is a natural choice for expats, especially existing Premier customers. They offer international banking services that simplify moving money. However, their lending policies for Australian property can be strict, often requiring a 40% deposit.
Citibank: As a foreign subsidiary bank in Australia, Citibank may be an option for some non-resident borrowers.

Specialist & Non-Bank Lenders

This group of lenders is often the key to success. They are vital for expats with complex situations.

Here’s a quick rundown of the foreign income policies of some specialist and non-bank lenders in Australia.

Lender	Max LVR (Expat)	Key Advantage/Feature	Best For...
Macquarie Bank	Up to 80% (policy varies)	Strong broker relationships; flexible products when available	Applicants with strong profiles seeking competitive packages, via a broker who can confirm current policy.
La Trobe Financial	Up to 80%	Accepts foreign income; considers complex scenarios and credit history	Self-employed expats or those with unique financial situations who may not fit major bank criteria.
Brighten Home Loans	Up to 80%	Comprehensive and competitive “Expatriate” product range for Prime borrowers	PAYG expats with a strong financial position looking for a clear, tailored non-bank solution.
Granite Home Loans	Up to 85%	Low 20% shading on foreign income; broker-exclusive innovative products	Expats earning in Tier 2 currencies or those looking to maximise borrowing power.
Mortgageport	Varies	Tailored products specifically for expats and non-residents	Expats seeking a lender that specialises in foreign income scenarios.

Non-bank lenders can have more flexible policies. They are not Authorised Deposit-taking Institutions (ADIs).

They often specialise in niche markets the major banks avoid. These lenders that accept foreign income are often more adaptable.

👉 Check out: Why Your Private Banker Can’t Compete with an Australian Expat Mortgage Specialist

AU Expats—Get the Experts on Your Side

Deposits and Lenders Mortgage Insurance

Securing a mortgage from overseas needs a clear financial understanding. This is especially true for the deposit, LVR, and LMI.

Lender policies are stricter for expats in this area. A clear grasp of these numbers is essential.

Loan-to-Value Ratio (LVR)

The LVR is the loan amount as a percentage of the property’s value. It’s a simple but important calculation.

For Australian expats, the standard maximum LVR is 80%. This means you need a deposit of at least 20%. You will also need extra funds for purchasing costs.

Borrowing More Than 80%

While 80% LVR is the standard, borrowing more is possible. Some lenders consider applications up to 90% or even 95% LVR.

This is not a standard offer. It’s reserved for applicants with a very strong profile.

To be considered for a loan with a 5-10% deposit, you would usually need to be a salaried employee with stable employment.

You would also need to be earning in a Tier 1 currency and buying a standard home in a major city.

👉 Also check out: How to Grow Your Home Loan Deposit

Lenders Mortgage Insurance (LMI)

LMI is a one-off insurance premium paid by you. It protects the lender if you default on the loan.

LMI is almost always required for loans with an LVR above 80%. This means it applies if your deposit is less than 20%.

The availability of LMI for expats is a key difference between lenders. Some will not provide it for foreign income applications at all.

This automatically caps the LVR at 80%. Other, more flexible lenders can offer these higher LVR loans to eligible expats.

👉 Also see: Who Is an Australian Expat? Everything You Need to Know

Key Requirements for Mortgage Application from Overseas

A successful mortgage application from overseas requires meticulous preparation.

You need to understand all administrative and legal requirements.

Essential Documents

Gathering the right documents is your critical first step. Requirements vary, but a typical application includes the following:

Proof of Identity: Certified copies of your current passport and driver’s licence. For expats, certification often needs to be done at an Australian embassy or consulate.
Proof of Income (PAYG/Salaried): Your current employment contract, two to three recent payslips, and three to six months of bank statements showing salary deposits.
Proof of Income (Self-Employed): Two years of complete business and personal tax returns, two years of full financial statements, and an accountant’s verification letter.
Visa and Residency Status: A copy of your visa proving your right to live and work in your current country.
Credit History: Some lenders may ask for a credit report from your country of residence.
Note on Translations: Any document not in English must have a certified translation. This is typically done by a NAATI-accredited translator in Australia.

👉 Learn more: Mortgage Documents Required in Australia for Non-Residents

Power of Attorney (POA)

A Power of Attorney is a legal document. It allows a trusted person in Australia to act on your behalf.

The lender’s policy on POAs is a critical variable for expats. Some lenders require it to handle loan documentation and settlement.

Conversely, others forbid it for signing final loan documents. If a POA is not allowed, you will need to have documents couriered to you.

You must then sign them at an Australian embassy or consulate.

👉 Learn more: Do I Need a Power of Attorney for an Expat Loan in Australia?

FIRB Approval—Myth vs Reality

A common myth surrounds the Foreign Investment Review Board (FIRB). It is vital to understand this rule clearly.

Australian citizens do not need FIRB approval to buy residential property. This is true regardless of where you live. This is a blanket exemption.

The rules for “foreign investors” do not apply to you. This same exemption applies to Australian Permanent Residents and eligible New Zealand citizens.

Debunking this myth removes a layer of perceived bureaucracy.

👉 Learn more: Do I Need FIRB Approval as an Expat?

Lenders have strict documentation standards. Any errors or omissions can cause major delays or rejection.

Navigating Special Scenarios

Common complexities for expats include buying with a non-citizen spouse.

Another is using a gifted deposit from family.

Buying with a Foreign (Non-Citizen) Spouse

This situation involves federal law, state tax law, and lender policies. It requires careful navigation.

The FIRB exemption extends to purchases with a foreign spouse. This applies if you buy as “joint tenants”, meaning you hold equal 50/50 shares in the property.

Lender policies vary when a foreign spouse is on the application. Some may refuse the foreign spouse’s income.

The most favourable lenders will use both incomes for serviceability. The biggest pitfall is the Foreign Buyer Stamp Duty Surcharge.

The federal FIRB exemption does not exempt you from state taxes. State revenue offices define a non-citizen spouse as a “foreign person”.

This means the foreign spouse will likely face a surcharge on their 50% share. This can be an unexpected and significant cost.

👉 Try: Stamp Duty Calculator

Using a Gifted Deposit

It’s common for buyers to get help from family for a deposit. Most Australian lenders accept a gifted deposit under certain conditions.

You will need a formal gift letter. This is a signed declaration from the person giving the money.

The letter must state the funds are a “non-refundable, non-repayable gift”.

It’s crucial that the gift is genuine. If the money is expected to be repaid, it is a loan, not a gift. Major lenders like ANZ, CBA, Westpac, and NAB are known to accept gifted deposits.

👉 Learn more: Gift Letter Templates for Australian Expat Home Loans

Both scenarios are manageable. But they require understanding separate and often conflicting rules.

Home Loan Fees and Surcharges

A complete budget is essential to avoid financial stress. You must account for all associated costs.

Expats must budget for standard fees and specific surcharges. This will ensure a smooth property buying process.

These are typical costs for most mortgage applications in Australia. They apply regardless of your residency status.

Type	Particular	Description
Upfront Fees	Application / Establishment Fee	A one-time fee from $500 to $1,000 to set up the loan.
	Legal / Conveyancing Fees	Ranges from $1,000 to $2,200 for legal transfer of ownership.
	Valuation Fee	Costs between $300 and $500 for a professional property valuation.
Government Charges	Stamp Duty	A significant state government tax on the purchase.
	Mortgage Registration Fee	A state fee to register the mortgage against the title.
	Transfer of Land Fee	A fee to register the change of ownership on the title.
Ongoing Fees	Monthly Service Fees	Some basic loans have small monthly fees from $8 to $50.
	Annual Package Fees	Loans with premium features often have an annual fee around $395.

Expats may face significant extra charges. This is especially true for their foreign partners.

The most substantial cost is the Foreign Buyer Stamp Duty Surcharge. This is a state-based tax on top of standard stamp duty.

It applies to the property share acquired by a person classed as foreign.

The table below shows the surcharge rates for foreign buyers across Australia. These figures can change, so always verify with the relevant state revenue office.

State/Territory	Surcharge Rate	Notes
NSW	8%	Applies to the dutiable value of the property. A 4% land tax surcharge also applies.
VIC	8%	Known as ‘Additional Duty’. An absentee owner surcharge of 4% on land tax also applies.
QLD	7%	Known as ‘Additional Foreign Acquirer Duty’ (AFAD). A 2% land tax surcharge also applies.
WA	7%	Known as ‘Foreign Transfer Duty’. Applies to the dutiable value of the foreign person’s interest.
SA	7%	Known as the ‘Foreign Ownership Surcharge’.
TAS	8%	Known as the ‘Foreign Investor Duty Surcharge’ (FIDS).
ACT	No stamp duty surcharge	A 0.75% land tax surcharge applies to the unimproved value of the land.
NT	No surcharge	No additional stamp duty or land tax surcharges for foreign buyers.

FIRB application fees may also apply if a foreign person is purchasing and does not qualify for an exemption. These fees start at $14,100 for properties up to $1 million as of 2024-2025.

Why a Specialist Mortgage Broker is Non-Negotiable

Securing a mortgage with foreign income is complex. The process can overwhelm even savvy individuals.

The lending landscape is defined by shifting policies and confusing rules. Going it alone is stressful and can lead to poor outcomes.

A specialist mortgage broker is an essential partner for success. They provide access, expertise, negotiation power, and efficiency. They understand which Australian lenders accepting foreign income will best suit your needs.

AU Expats—Start Your Australian Property Journey

Buying property in Australia while earning income overseas is achievable. It presents unique challenges, but it can be done. Success comes from understanding and navigating the complexity.
You need the right strategy and support. Policies vary dramatically on every critical point. The currency you earn in and how a lender assesses your tax and income are crucial. A comprehensive budget that includes all fees and surcharges is also vital.
Above all, specialist guidance is the most important. We specialise in unlocking the best financial solution for Australian expats and foreign investors based overseas. Schedule a personalised assessment with an expert to start your road to success.
Speak with an expat mortgage specialist

Key Takeaways

Lenders view foreign income as risky, using “shading” to discount a percentage for loan assessment. ⬆️
Lenders may apply high Australian tax rates to your foreign income, greatly reducing your borrowing capacity. ⬆️
Your income’s currency is tiered—Tier 1 (e.g. USD) offers more options and favourable terms than Tier 2 (e.g. AED). ⬆️
Major banks and specialist lenders accept foreign income, but often only through the mortgage broker channel. ⬆️
A 20% deposit is standard for expats—borrowing more requires Lenders Mortgage Insurance (LMI) if available. ⬆️
A successful application needs meticulous preparation of key documents like ID, proof of income, and visas. ⬆️
Buying with a foreign spouse or using gifted deposits is possible but requires navigating specific, complex rules. ⬆️
Expats must budget for standard loan fees plus potential extras like the Foreign Buyer Stamp Duty Surcharge. ⬆️
A specialist broker is essential to navigate complex policies and access the best lenders and loan deals. ⬆️

Lenders Who Accept Foreign Income in Australia