Australian expats living in Canada are still Australian citizens! Here’s what home loan options are available to you.
Australian home loans for expats in Canada
Get the following home loan options and features as Australian expats or permanent resident visa holders living in Canada.
Variable, Fixed, or Interest-Only
Australians in Canada are still Australian citizens, even if you're living in Canada. You can, therefore, apply for competitive home loan options and rates in Australia as any typical Australian borrower.
Since the Canadian dollar (CAD) is an acceptable currency for most lenders, you can readily get an expat mortgage in Australia with minimal hassle.
Loan Size and Term
If you're an Australian living in Canada, most lenders will lend you up to 90% of the purchase price. You can qualify for the same features and terms as an Australian resident.
Some lenders will accept 90% of your net Canadian income for the home loan if you can provide enough evidence of income.
Home Loan Package: Offsets, Redraw & Line of Credit
Australian expats in Canada can access most of the mortgage features as any Australian citizen, which may include:
- 100% Offset accounts
- Extra repayments
- Redraw facility
- Salary crediting
- Line of credit and more
Self-employed borrowers living in Canada can borrow up to 80% of the property value if they apply with the right lender.
Why Do Banks Favor Australian Expats From Canada?
When it comes to accessing expat home loans, most Australian lenders readily accept the Canadian Dollar as it is a commonly accepted currency in Australia.
Additionally, Great British Pounds (GBP), Euros, United States dollars (USD) and even Japanese Yen (YPY) are widely accepted by Aussie lenders for home loan purposes.
Pros and cons of Australian expat home loans from Canada
Here are the advantages and disadvantages of getting an Australian home loan from Canada:
A few Australian lenders may use the tax rates of Canada instead of the Australian tax rates, significantly improving your home loan borrowing power.
If you earn Canadian currencies but can't provide sufficient financial documents to prove your Canadian income, you may be limited to borrowing up to 80% LVR.
You are not limited to buying a new property. You can choose to buy a new property, an existing one or vacant land.
Australian lenders may ask for an Australian Power of Attorney (POA) to qualify for a mortgage in Australia.
Self-employed Australian borrowers in Canada may be able to borrow up to 80% of the property value with select lenders.
Australians with dual citizenship or foreign spouses may be treated as a foreigner by lenders. This can add certain restrictions to your expat home loan options, including a reduced borrowing capacity.
Most lenders will ignore your partner's income if they're not Australian citizens or permanent resident visa holders.
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
Mortgage features of Australian expat in Canada
If you’re wondering, “What benefits do I get as an Australian expat from Canada?”, then look no further. Australian lenders provide the following home loan features to Aussie expats in Canada.
Typically, a deposit size of 20-30% of the property value is considered good for Australian home loans. A few lenders may even allow a 10% deposit if you can meet their criteria.
Australians in Canada applying for a mortgage in Australia can borrow up to 90% of the property price. Self-employed individuals can borrow up to 80% loan to value ratio if they can provide sufficient documents.
You can qualify for flexible repayment options since Australian expats are considered Australian citizens. They are also exempt from paying early repayment penalties.
Australian expats living overseas can qualify for the same rates as Australian residents living in Australia.
Key Facts about Australian expats in Canada
Applying for Australian mortgages for expats from Canada
Australian expats in Canada must meet the following criteria to qualify for a home loan:
To be eligible for an expat home loan, you will need:
- A good credit score or history of making repayments on time.
- Australian citizenship to prove that you’re an Australian expat.
- 20 – 30% deposit if you’re a Canadian national.
- Over 18 years of age.
- A Power of Attorney may be required.
- Two forms of income verification including recent payslips, an employment letter, or tax returns.
- Forms of identification including a passport, driver’s licence, or birth certificate.
- Details of your expenses, such as other credit liabilities and living costs.
- Details of your prospective property purchase (if you’ve located a property)
Double Tax Agreement
Australia and Canada have a Double Taxation Agreement, which protects tax residents from being taxed twice in both countries and prevents fiscal evasion with respect to income tax. Bear in mind that expats are considered non-residents after living overseas for two years.
Australian expats living in Canada do not need FIRB approval to buy property in Australia because Australian expats are essentially Australian citizens. Only non residents require approval from the FIRB.
Stamp Duty Surcharge
Similar to FIRB approval, Australian expats do not need to pay foreign stamp duty in most cases. They only need to pay the normal stamp duty rate depending on which state they are buying property from.
However, if you’re buying a property with your foreign spouse or partner, you will need to pay the foreign stamp duty surcharge (between 7-8% of the purchase price).
Speak with an expat mortgage broker today!
Although an Australian expat living in Canada is considered an Australian citizen by most lenders, you may still come across challenging requirements to qualify for competitive options.
Speak with our specialist expat mortgage broker at Odin Mortgage to find the most suitable lenders to help you maximise your home loan options.
We also provide expat mortgage services in the following countries
Australian expats in Canada FAQs
Can I get a mortgage in Australia if I live in Canada?
Australian expats living in Canada can qualify for an expat home loan in Australia. Banks and lenders in Australia typically treat expats as Australian citizens, so you can even apply using the same rates and features as a regular resident in Australia.
However, non residents will need to meet certain lender criteria and will be charge extra costs such as foreigner stamp duty.
What if my partner is not Australian?
In case you’re married to or are in a de facto relationship with a foreign citizen, Australian lenders may:
- Assess both of you as Australian citizens.
- Consider both of you as foreign investors.
- Use the nationality of the highest income earner to determine how to assess your mortgage.
Lenders will often accept your Canadian partner’s income if you’re the main income earner in the family, you’ve been married to your spouse for over two years, you have children together, or if your partner holds a valid Australian visa.
What solutions are available for self-employed Australian expats?
Self-employed Australian expats may find it challenging to provide an up-to-date financial record of their income and expenses to Australian lenders. However, we can help you find the right lender with the most suited criteria.
Some lenders even provide low doc or even no doc home loan solutions for Australian expats living in Canada.
Fill up the form to get a free assessment, and one of our specialist expat mortgage brokers will get back to you with a suitable solution.
What are the extra costs involved?
When buying property in Australia, it’s important to be aware of the other costs that may apply. These costs can include:
- A deposit or genuine savings
- Lenders Mortgage Insurance (LMI)
- Foreign stamp duty surcharge
- Other expenses may include costs for an attorney, solicitor or agent if you decide to hire one.
What if I don't have genuine savings or a deposit?
Australian expat borrowers in Canada need at least 5% of the purchase price in their bank account as genuine savings. However, you generally don’t need to prove genuine savings if you have a big deposit size.