Australian Mortgages in Qatar

Australian Mortgage in Qatar

Qatar

Qatar is an attractive prospect for many Australian expats. But what are your home loan opportunities upon returning to Australia?

Australian Home Loans for Expats in Qatar

Here is everything you need to know about expats in Qatar finding Australian home loans.

Variable, Fixed, or Interest-Only

Australian expats living in Qatar can choose from variable-rate, fixed-rate, or interest-only home loans. The latter two last for a maximum of 15 years before reverting to a variable rate loan. 

Qatari nationals might also negotiate fixed-rate or interest-only loans, but may face some restrictions.

Loan Size and Term

All Australians and foreign nationals can apply for a maximum home loan of 30 years. There is no maximum loan size. However, most lenders offer a maximum of 90 - 95% LVR for expats. Qataris might expect an LVR of around 70 - 80%.

Home Loan Package: Offsets and Redraw

Australian expats are eligible for the same home loan features as anyone in Australia. Whether you want an 100% offset feature, redraw facility, or a line of credit, negotiate with your lender. 

Qatari nationals can also apply for additional loan features, but lower borrowing power may impact their application.

How Do Lenders View Qatari Riyal?

Qatari riyal is a tier 2 currency. Therefore, some lenders might only look at between 60 - 80% of your net income if you earn in a foreign currency. 

Pros and Cons

Take a look at the pros and cons of home loans for expats in Qatar.

Pros Cons
Australian expats in Qatar can access the same interest rates as Aussies back home.
Some lenders might apply Australian tax rates, reducing your borrowing power significantly.
Qatar’s lack of taxation might mean Australian expats can save up more genuine savings for a higher deposit.
Some lenders might require a Power of Attorney in Australia for you to purchase property.
Australian expats in Qatar can borrow up to 95% of the property purchase price with some lenders.
Lack of tax return history might impact your ability to provide sufficient evidence of your income.
Self-employed Aussie expats in Qatar might borrow up to 80% LVR.

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Mortgage Features

Here are the main mortgage features expats in Qatar can expect

Feature Details
Deposit Size
Australian expats in Qatar will need a minimum deposit of 5%. However, most lenders prefer deposits of around 20%, otherwise you will have to pay LMI and higher interest rates. Qatari nationals might need a deposit of nearer 30%.
Borrowing Power
If your lender uses Qatari tax rates, you should have a pretty strong borrowing power. However, if they apply Australian tax rates (which some do), you might find your borrowing power taking a hit.
Repayment Options
Australians and Qataris can apply for a weekly, monthly, or fortnightly repayment plan with most lenders.
Interest Rates
Interest rates are the same for Australian citizens and expats. As long as you provide sufficient evidence of your income and save a substantial deposit, you can expect competitive interest rates. Qatari nationals might face higher rates if applying for an Australian home loan through a specialist lender.

Key Facts

115,000 Westerners live in Qatar.

Qatar doesn’t apply income tax on expats or Qatari residents.

Feature Details
Deposit Size
ANZ prefers a home loan deposit of 20% or more when applying for a home loan.
Offset Account
A transaction account linked to home or investment loans. This account can be used to offset the amount you owe on the loan, and ANZ will only charge the interest in the difference.
Repayment Options
Depending on your loan type, repayments can be made weekly, fortnightly or monthly via ANZ’ Internet Banking services.
Package Benefits
With ANZ packages, borrowers can access lower interest rates, free offset account, credit card and benefit from waived fees.
Interest Rates
With the Breakfree package, borrowers can access a discount up to 2.10%
Expat Information
ANZ can assist loan applications in a variety of foreign currencies.

How Do I Apply?

When applying for an Australian mortgage as a Qatari or expat in Qatar, you’ll need to meet the lender’s eligibility criteria.

Eligibility

Make sure you apply with a lender who specialises in home loans for Australians in Qatar. 

  • 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 Qatari national.
  • Over 18 years of age.

Documents required

  • Two forms of income verification, such as recent payslips or an employment letter.
  • 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.

Other Considerations

Double Taxation Agreement

Australia doesn’t have a tax treaty with Qatar. However, as an expat, you won’t have to pay income tax in Qatar. If you buy property in Australia, you will need to pay tax on your Australian income (rental income or CGT when selling a property). If you move back to Australia, you will become a tax resident and pay tax on your worldwide income.

FIRB Approval

Australian expats don’t need FIRB approval to purchase property, even if you’re jointly buying with a Qatari spouse.

Stamp Duty Surcharge

While Aussie expats don’t have to pay the stamp duty surcharge, if you’re buying property jointly with a Qatari, you will have to pay the extra 7 – 8%. The same goes for land tax.

Frequently Asked Questions

Expats should ideally have a deposit of around 20%, although it is possible to have as little as 5%. Qatari nationals might need 30% deposits.

Qatari nationals can apply for Australian home loans. However, they might need a deposit of 30%, strong credit history, and apply through a specialist lender. Additionally, check with FIRB whether you need approval to purchase property.

Your foreign income can include salary, wages, investment income, and bonuses depending on a history of reliability. You can prove your income with tax returns in English, payslips, or letter of employment. You might need to hire a licensed translator for foreign documents.