Australian Home Loans For Expats In Hong Kong
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Over 100,000 Australians live and work in Hong Kong. Most are in finance, banking, and professional services — earning strong incomes in Hong Kong dollars.
Many assume getting an Australian home loan from Hong Kong is complex and slow. That assumption costs them years of property growth.
The reality: Australian expats in Hong Kong access the same home loan rates as local Australian borrowers. Better still, Hong Kong’s maximum 15% tax rate significantly boosts your borrowing power — giving you a major advantage over borrowers back home.
This guide covers eligibility, documents, which lenders accept HKD income, and the HK tax strategy that maximises your loan size.
Key Points on Home Loans for Australians in Hong Kong
- Competitive Interest Rates Similar to Local Borrowers: Australian expats in Hong Kong can access the same interest rates as local borrowers in Australia, with no additional rate premium for earning foreign income.
- Up to 80% Loan-to-Value Ratio (LVR): Most lenders allow up to 80% LVR, requiring a minimum 20% deposit. In select cases, higher LVRs may be available with mortgage insurance, but these are less common for expat home loans.
- Income Discounting for Currency Risk: Due to currency fluctuations, lenders often apply a 20-40% discount on Hong Kong dollar (HKD) income, impacting the total borrowing capacity.
- Limited Lender Options with Expat-Friendly Policies: Only a subset of lenders actively lend to Australian expats in Hong Kong. These lenders generally have favourable policies tailored to expatriate circumstances, such as flexibility with documentation and streamlined online processes.
Australian Home Loans for Expats in Hong Kong
Here is everything you need to know about Australian property loan when applying from Hong Kong.
Australian Mortgage Options for Aussie Expats in Hong Kong
Hong Kong citizens and expats living in Hong Kong can apply for residential and investment loans or refinancing. Lenders offer the same mortgage options for Australian citizens, non-residents, and foreign nationals.
Variable Rate Home Loan
Pros
Interest rates on variable rate home loans are flexible, so if they drop, your monthly payments will be lower. This can be advantageous if you foresee interest rates decreasing.
Cons
While rates can decrease, they can also increase, potentially resulting in higher payments. If you’re unprepared for this possibility, it can create financial challenges.
Who Should Consider It?
This option is ideal if you’re optimistic about future interest rate declines and are willing to accept some risk.
Fixed Rate Home Loan
Pros
With a fixed rate mortgage, you’ll have a fixed interest rate for a specific period (typically 1-5 years), which will give you consistent monthly payments and budgeting stability.
Cons
You won’t benefit if interest rates fall below your fixed rate during that time. Breaking the fixed-rate term can also be costly.
Who Should Consider It?
This option is best if you value predictable payments and dislike unexpected changes in your budget.
Split Home Loan
Pros
With a split home loan, you can enjoy the stability of fixed payments on one part of your mortgage and the flexibility of variable rates on the rest by combining a fixed-rate and variable-rate loan.
Cons
If interest rates drop significantly, you may see less savings than a fully variable loan. Also, the fixed-rate portion often has a slightly higher interest rate, which could increase your borrowing costs.
Who Should Consider It?
This option is suitable if you want a balance between predictable budgeting and the opportunity to benefit from favourable market conditions.
Interest-Only Home Loan
Pros
With interest-only home loans, you have lower monthly payments initially because you only pay interest. This can help free up cash flow for other investments or expenses.
Cons
You’ll pay more interest overall due to the longer repayment period. Additionally, you won’t build equity in your property during the interest-only period, which can be risky if property values fall.
Who Should Consider It?
This option might be a good choice for short-term investment strategies or if you need to manage your cash flow for specific reasons. However, it’s crucial to have a plan to start paying down the principal in the future to avoid owing a large amount at the end of the loan term.
Pro Tip: Beyond interest rates, there are several crucial factors to consider when finding a lender for Aussie expat home loans:
✓ Low interest rates and fees
✓ Ability to make additional repayments
✓ Online banking accessible from Hong Kong, ideally with an offset account
✓ Credit policies that accommodate Australian expats and non-residents
Loan Size & Term
Hong Kong citizens can get a maximum loan term of 30 years, the same as for most Australian citizens. Most lenders require a minimum loan size of $100,000 for Hong Kong citizens. Investors from Hong Kong can borrow up to 75% of the loan to value ratio. Expats may borrow up to 90%, although this depends on your borrowing power. Odin Mortgage can help find you the best loan for your situation.
Loan Features
Aussie expats in Hong Kong can get all the features available to permanent residents residing in Australia. Depending on your borrowing power, you can negotiate offset accounts and redraw facilities. Hong Kong investors are also eligible for the same home loan features. Most lenders will also get phone and internet banking—although phone banking may not work in your area.
Are HK Dollars Acceptable to Aussie Banks?
As there are so many Australian expats in Hong Kong, banks are used to dealing with Hong Kong currency. If you earn HKD, this shouldn’t impact your home loan approval chances.
However, some lenders might restrict your loan size if your main source of income is in HKD. Lenders might only consider between 80% – 100% of your income to account for currency fluctuations. That said, Hong Kong dollars are pretty stable and lenders are trusting of the currency.
Start Your Australian Property Investment from Hong Kong!
Apply online with Odin Mortgage and Tax to get expert recommendations with real interest rates and repayments for Aussie home loans from Hong Kong.
Applying for an Australian Expat Mortgage
When applying for an Australian mortgage as a Hong Kong citizen or expat in Hong Kong, you’ll need to meet the lender’s eligibility criteria.
Eligibility for Expat Loans Australia
Whether you are looking for a residential or an investment property loan in Australia, make sure you apply with a lender who specialises in mortgages from Hong Kong. You’ll also need to meet the following criteria:
A good credit score or history of making repayments on time.
Australian citizenship (if you’re an expat).
20 – 30% deposit if you’re a Hong Kong national.
Over 18 years of age.
Documents Required to Apply for Australian Home Loan From Hong Kong
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 (unless pre-approval)
Other Considerations
Double Taxation Agreement
While Australia has a tax treaty with China, this does not extend to Hong Kong. If you’re an Australian tax resident, your income in Hong Kong is subject to Australian taxes. Therefore, speak to a professional to make sure you don’t end up paying double taxes.
Generally speaking, most expats are not considered tax residents after living overseas for two years.
FIRB Approval
As an Australian citizen, you don’t need FIRB approval to buy property in Australia, regardless of how long you’ve lived overseas. If you’re purchasing jointly with a spouse who is not an Australian citizen or permanent resident, their share of the purchase may trigger a FIRB requirement — confirm this with your lawyer before exchanging contracts.
See our full guide to FIRB compliance for overseas investors.
Typically, foreign nationals are restricted to purchasing new property or vacant land only.
Stamp Duty Surcharge
Similarly, if you’re a Hong Kong citizen or purchasing property with a Hong Kong citizen, you might have to pay the stamp duty surcharge. Use our stamp duty calculator to estimate costs by state — the foreign resident surcharge varies by state: 8% in NSW, 7% in VIC, QLD and WA, 6% in TAS, 5% in ACT, 4% in SA. NT does not currently apply a surcharge.
Are You Ready to Invest in Australia?
Invest in Australia with confidence by partnering with Odin Mortgage. Our experts will smooth out the home loan process, guiding you through the ever-evolving real estate landscape.
Key Features of Australian Expat Home Loans
Here are the main features you get on your Australian property mortgage when applying from Hong Kong.
Deposit Size
Most Australian banks will prefer expats in Hong Kong to have 5% genuine savings. Most Hong Kong citizens will need at least a 20% deposit. Some lenders might require 30%.
Borrowing Power
If you’re earning HKD, some lenders might only consider 80-90% of your net earnings. Therefore, your borrowing power could be significantly lower. Read our guide on how to increase your borrowing capacity to understand what lenders look for and how to maximise your loan size.
Repayment Options
Most lenders will offer flexible repayment options to Hong Kong residents. Plus, Aussie expats can make early home loan repayments without triggering penalties.
Interest Rates
Aussie expats in Hong Kong are still Australian citizens so should get the same competitive interest rates as those living in Australia. As a Hong Kong national, you may have to pay slightly higher interest rates because you will need a specialist lender.
Pros and Cons of Home Loans for Australian Expats in Hong Kong
Take a look at the pros and cons of Australian property loan from Hong Kong.
Pros
- Australian citizens in Hong Kong might be able to borrow up to 90% loan to value ratio with the same interest rates as those in Australia.
- Some lenders might use Hong Kong tax rates to assess borrowing power for Australian expat home loans. Hong Kong tax rates are capped at lower percentages. (maximum 15% on net assessable income).
- Hong Kong nationals married to Australian citizens might be able to borrow up to 95% loan to value ratio.
- Hong Kong investors (who are not Australian citizens or permanent resident visa holders) can borrow up to 75% loan to value ratio.
Cons
- Some lenders might treat dual citizenship holders as foreign borrowers and restrict your borrowing power.
- If you earn solely in HKD and cannot provide sufficient evidence of your income, lenders might only consider 80% of your income.
- If you can’t be in Australia for settlement, some lenders will accept a Power of Attorney to sign on your behalf.
Based in Singapore instead? Read our dedicated guide for Australian expats in Singapore.
FAQs about Aussie Expat Home Loans from Hong Kong
Can I get a mortgage in Australia if I live overseas?
Yes, you can get a mortgage in Australia while living overseas in Hong Kong. Many Australian lenders offer home loans to expats, but you may face specific requirements, like a higher deposit (often around 20%), proof of stable foreign income, and sometimes higher interest rates.
Australian banks typically assess income in foreign currencies but may also have specific requirements for documentation. Working with a mortgage broker who understands expat lending, such as Odin Mortgage, can help you find the best options and navigate the application process smoothly.
Can foreigners get mortgage in Hong Kong?
Yes, foreigners can get a mortgage in Hong Kong. Banks and lenders in Hong Kong generally offer home loans to non-residents, though foreigners may need to meet stricter criteria, such as a larger down payment (often 40-50%) and a strong financial profile.
If you’re looking to get a home loan to buy Australian real estate instead, we’re here to help you from application to settlement and beyond!
Will Australian banks lend on overseas property?
Generally, Australian banks do not lend on overseas property. Most Australian banks require the property being financed to be within Australia due to regulatory and risk considerations.
However, some Australian-based lenders and international banks with a presence in Australia might offer financing for overseas properties, typically through specialised loans or in partnership with foreign branches.
In such cases, working with an international mortgage broker can help identify alternative financing options if you’re looking to buy property abroad.
Can I get an Australian Expat Mortgage in Hong Kong?
Expats living in Hong Kong are eligible for the same mortgage types, features, and interest rates as Australian citizens living in Oz. You might struggle to prove your foreign income if you don’t have sufficient documentation.
Is buying property in Australia possible for non residents?
Non-residents in Hong Kong can apply for home loans to buy Australian property with a specialist lender. Foreign property investors may need to provide a deposit of 20 or 30%.
How much can I borrow for home loans in Australia if I'm in Hong Kong?
While lenders prefer an LVR of 70 or 80%, Australian residents in Hong Kong may borrow up to 90% of the property value. Some lenders might even approve a LVR of 95%.
Can Australians live in Hong Kong?
Yes, Australians can live in Hong Kong, though you’ll need the appropriate visa to do so.
Many Australians move to Hong Kong for work, often on employment visas sponsored by their employer. Other visa options include the Quality Migrant Admission Scheme for skilled professionals and dependent visas if they have family members who are Hong Kong residents.
Australians can also stay short-term for up to 90 days without a visa for tourism or business, but longer stays require the relevant visa or permit.
What documents can I use as proof of my foreign income?
To prove foreign income from Hong Kong for an Australian mortgage application, you can typically use the following documents:
- Payslips: Recent, consecutive payslips (usually from the last 3–6 months), ideally in English or translated by a certified translator.
- Employment Contract: Details of your role, salary, and duration of employment.
- Tax Returns: Hong Kong tax returns showing your declared income.
- Bank Statements: Statements from the last 3–6 months showing regular salary deposits.
- Letter from Employer: A formal letter confirming your position, income, and employment stability.
These documents help lenders verify your income consistency and reliability.
Work With an Australian Expat Mortgage Broker
Finding the right lender for your situation is not straightforward. Most Australian banks apply significant haircuts to foreign income — the gap between the wrong lender and the right one can be hundreds of thousands of dollars in borrowing capacity. Our Australian expat mortgage broker team works with 40+ lenders and knows exactly which ones treat overseas income fairly.
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