Find out what mortgages are available for Australian expats residing in China.

Home Loans For Australian Expats In China

Have a look at what home loan options are available for you as Australian expats in China.

Variable, Fixed, or Interest-Only

Australian citizens living in China can apply for competitive variable-rate, fixed-rate, or interest-only home loans in Australia with features similar to a typical Australian borrower.

Expats in China are eligible for the same home loan rates and options as any Australian citizen. Some banks also allow you to apply for a no-deposit home loan solution and mortgages with no genuine savings.

As an Aussie expat in China, please keep in mind that some lenders may accept your application but offer higher interest rates or have a higher deposit threshold.

Loan Size and Term 

Australian citizens and permanent residents living in China can typically borrow up to 90% of the property value. This is because most lenders consider you an Australian resident regardless of the country of origin.

The same features and limitations apply to Australian expats as applied to Australian residents.

Home Loan Package: Offsets, Redraw & Line of Credit

Australian expats in China can not only qualify for competitive interest rates on their home loans but can get access to the same mortgage features as any Australian citizen.

These features may include:

  • 100% Offset accounts
  • Extra repayments
  • Redraw facility
  • Salary crediting
  • Line of credit and more

How Do Lenders View the Chinese Yuan?

As one of the strongest performing currencies in the world, the Chinese Yuan (CNY) or Renminbi (RMB) is an acceptable form of currency for Aussie lenders for mortgages in Australia. However, please keep in mind that some lenders will restrict your borrowing capacity to 80% of the property value if you choose to use your Chinese income.

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 China

Take a look at the pros and cons of getting an Australian home loan from China:

Pros Cons
Some Australian lenders choose to use China's tax rates instead of the Australian tax rates, which will greatly improve your borrowing power.
Your borrowing power may be limited to up to 80% LVR if you cannot provide lenders with sufficient documents to prove your income in China.
Because CNY and RMB are strong currencies in Australia, our lenders will usually accept 90% of your Chinese income.
Australian expats in China may need to show an Australian Power of Attorney (POA) to qualify for a mortgage in Australia.
Self-employed expat borrowers in China may qualify for up to 80% LVR with select lenders.
If you have dual citizenship or are married to a foreigner, some lenders may treat you as a foreigner which can greatly reduce your borrowing capacity.
Chinese investors (those who are not Australian citizens or permanent resident visa holders) may be able to borrow up to 95% of the property price.

Allow us to find you the perfect home loan.

Apply online to get expert recommendations with real interest rates and repayments.

Features of Australian expat mortgages

Here are the main mortgage features overseas expats in China who are applying for a home loan can expect:

Feature Details
Deposit Size
Generally, Australian lenders require Aussie expats to have at least 5% of the property price as genuine savings held for 3 to 6 months in a bank account. You may not need to prove genuine savings if you have a larger deposit.
Borrowing Power
Australian expats or permanent residents living in China can typically borrow up to 90% of the property price. If you're a self-employed individual then you still borrow up to 80% LVR.
Repayment Options
Australian expats in China have flexible repayment options. Also, since Australian expats are still considered Australian citizens, they are exempt from paying penalties for repaying the home loan early.
Interest Rates
Australian expats in China will not only get competitive interest rates as offered to Australian citizens but can also access the same home loan features.

Key facts about Australian expats in China

Australian expats living in China can borrow up to 90% LVR.

Self-employed expats in China may be able to borrow 80-90% of the property value, depending on their documentation.

Chinese investors living in Australia or married to an Australian citizen can borrow up to 95%.

Most lenders will require you to provide your financial documents in English; you may need an interpreter's certificate.

How to apply for an Australian expat home loan if I live in China

You must meet the following criteria when applying for Australian expat home loans in China.

Eligibility criteria

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 Chinese national.
  • Over 18 years of age.
  • Some lenders require an Australian Power of Attorney.

Documents required

  • Two forms of income verification, such as recent payslips, an employment letter, or tax returns.
  • Form of identification, such as 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)
  • Some lenders may require a translator’s certification if your financial documentation is in a language other than English.

Other Considerations

Double Tax Agreement

Australia has a Double Taxation Agreement with China. This means that you will not be taxed for your the income you earn in China if you’re an Australian tax resident, according to the Australian Tax Office. Keep in mind that most expats are typically considered non-residents after living overseas for two years.

FIRB Approval

As Australian citizens, Australian expats living in China don’t need FIRB approval when applying for an expat home loan in Australia. Only non residents require approval from the FIRB.

Stamp Duty Surcharge

Similarly, Australian expats only need to pay the normal stamp duty rate depending on which state they are buying property in. However, Chinese citizens will have to pay the foreign stamp duty surcharge which is between 7-8% of the property value.

There is no foreign resident surcharge in the NT, ACT, or TAS.

Find the best expat mortgage in Australia for Australian expats in China​

Some lenders can make it difficult for Australian expats in China to get a home loan depending on their criteria and requirements. Speak with our specialist expat mortgage broker at Odin Mortgage to find a lender who is best suited for your financial needs.

We also provide expat mortgage services in the following countries:

FAQs: Expat mortgage Australia from China

The simple answer is Yes! You can get an expat home loan if you are an Australian expat living in China. Moreover, Chinese residents can also apply for a home loan in Australia. However, they will have certain restrictions, such as higher home loan interest rates and limited mortgage features.

Similar to Australian expats in China, Australian citizens living in Hong Kong can get a mortgage in Australia and borrow up to 90% LVR. However, the double tax agreement in China is not applicable in Hong Kong because of China’s ‘”One Country, Two Systems” principle.

Australia and China have a Double Tax Agreement, which means you’ll only pay taxes to the Australian government. This means you may also be able to capitalise on negative gearing benefits if you own an investment property.

You can check out the Australian Taxation Office (ATO) or State Administration of Taxation of The People’s Republic of China websites for more information related to tax for Australian expats.

Yes, purchasing property in Australia comes with several extra costs other than saving a deposit. These costs can include:

  • A deposit
  • Lenders Mortgage Insurance (LMI)
  • Stamp duty surcharge

Other expenses may include costs for an attorney, solicitor or agent, if you decide to hire one.

Australian lenders expect expat borrowers in China to have at least 5% of the property value in their bank account as genuine savings. However, you generally don’t need to prove genuine savings if you have a large deposit.

As an Australian citizen living in China, you can choose a no deposit home loan if you have no deposit, or a no genuine savings home loan option if you do not have any genuine savings.

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