Are you an Australian citizen living in Singapore? Are you planning to buy a property in Australia from Singapore? Odin Mortgage is the perfect expat mortgage broker you are looking for.

Australian home loans for expats in Singapore

If you are in Singapore, here is everything you need to know about Australian home loan Singapore for expats:

Variable, Fixed, or Interest-Only

As an Australian citizen living in Singapore, you have the option to apply for a variable-rate, fixed-rate, or interest-only home loan. If you’re a Singaporean, then here’s some good news for you too – Singaporeans can apply for most home loan products too. 

However, foreign nationals might face higher interest rates.

Loan Size and Term 

Australian citizens and permanent visa holders residing in Singapore may borrow up to 90% loan to value ratio (LVR). Although, this depends on credit score and income. If you cannot provide sufficient evidence of your Singaporean income, lenders may limit you to 80% LVR.

Home Loan Package: Offsets and Redraw

Whether you’re an Australian expat in Singapore or a Singaporean, you have the option to apply for offset features and redraw facilities on your home loan. In general, lenders only tend to offer a loan to strong borrowers. If your Singaporean income is not sufficient, the lender will reduce your borrowing power. To ensure you get the best of the loan features, it’s best to speak to a specialist Australian expat mortgage broker.

How Do Lenders View Singapore Dollars?

Whether you’re earning in Singapore dollars (SGD), Great British Pounds (GBP), Euros or United States dollars (USD), Australian lenders accept most widely used currencies. However, SGD is a safe bet for Australian lenders. Some lenders will consider your entire income for a property loan in Australia while some might not consider 100% of your income, especially if you cannot provide sufficient income proof.

Pros and Cons of home loans for Australian expats in Singapore

Take a look at the pros and cons of Australia property loan Singapore:

Pros Cons
Some Australian lenders will use Singaporean tax rates on your income, as opposed to applying Aussie rates. This should help strengthen your borrowing power on your home loan. By using Singaporean tax rates, your net income may appear higher, which can make you eligible for a higher loan amount.
Some lenders may not offer competitive interest rates to Australian expats residing in Singapore without adequate evidence of their net income.
Singapore dollars are relatively well-known in Australia, therefore, some lenders will consider 100% of your income.
Self-employed borrowers living in Singapore may face restrictions on the loan amount, features, and interest rates, and may be required to provide several years' worth of tax returns to prove their income.
Australians in Singapore don't pay higher interest rates, as long as they can provide proof of income.
Difficulties may arise when dealing with lenders who cannot process foreign addresses or phone numbers, leading to significant delays. Speak to a specialist Australian expat mortgage broker in Singapore to find the right lender for you.

Allow us to find you the perfect home loan.

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

Key features of Australian Expat Home Loans

Here are the main property loan features overseas expats in Singapore can expect:

Feature Details
Deposit Size
Most Aussie expats can get away with a deposit size as low as 5%. However, to avoid paying LMI, it’s best to save a deposit of around 20%. You’ll also need to save enough for additional bank fees and charges, such as a loan application fee.
Borrowing Power
As the Singapore dollar is a fairly reliable currency, many lenders will accept 100% of your net income. However, you may find some lenders only consider 80% of your income. Also, remember that Singapore has a private school system. Lenders will consider school fees as one of your expenses affecting your borrowing power.
Repayment Options
Australian expats and Singapore residents can opt to repay their home loans monthly, weekly, or fortnightly. Additionally, expats can repay their home loans early without penalty.
Interest Rates
Australian expats should expect the same mortgage interest rates overseas as offered to Australian citizens. Singapore residents might face higher interest rates if applying for a home loan with a specialist lender. Both expats and Singapore residents might have to pay extra fees for translations and other international costs.

Key Facts about Australian citizens in Singapore

More than 20,000 Australians live in Singapore.

If you’re a dual citizen or married to Singaporean, some lenders might treat you as a foreign borrower.

Singapore-based Australian banks no longer offer overseas property loan Singapore.

How to Apply for an Australian Property Loan from Singapore.

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

Eligibility criteria to apply for an Australian home loan from Singapore

To be eligible for a home loan in Singapore, you need to:

  • Have a good credit score or history of making repayments on time.
  • Be an Australian citizenship (if you’re an expat).
  • Put down a 20 – 30% deposit if you’re a Singapore national.
  • Be over 18 years of age.
  • Some lenders might require a Power of Attorney.

Documents required to apply for Australian home loan from Singapore

To apply for an Australian home loan from Singapore, you need:

  • 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)

Other Considerations

As an expert mortgage broker for Australian citizens in Singapore, we understand that there are other considerations to take into account when buying property in Australia from Singapore. In this section, we’ll discuss some of the key factors that expats should be aware of before applying for a mortgage.

Double Taxation Agreement

Singapore and Australia have a Double Taxation Agreement. This means that if you’re a tax resident in both countries, you are eligible for a tax rebate to prevent paying two lots of tax on the same income.

FIRB Approval

Australian expats in Singapore don’t need to apply for FIRB approval when applying for expat mortgage Australia. Singaporean investors might do, though. Typically, foreign investors can only purchase new homes or vacant land.

Stamp Duty Surcharge

Australian citizens will only have to pay the normal stamp duty rate of between 4-5%. However, if you’re jointly purchasing with a Singaporean spouse, you will have to pay the stamp duty surcharge. You may also have to pay the foreign ownership land tax surcharge.

Power of Attorney

Some lenders require Australian expats to have a Power of Attorney in Australia to carry out legal actions on your behalf when applying for mortgage. This is an important consideration for expats who may not be able to travel to Australia to complete legal requirements. It’s important to check with your lender to understand their specific requirements.

We also provide expat mortgage services in the following countries

Frequently Asked Questions

Yes, Australian expats living in Singapore are eligible to obtain a home loan to purchase a property in Australia. The good news is that expats can enjoy the same interest rates, loan features, and terms for their mortgage as those living in Australia. This means that expats can access a variety of home loan options that cater to their needs, such as fixed or variable interest rates, flexible repayment options, and longer loan terms. So, if you’re an Australian expat in Singapore looking to buy property in Australia, getting a home loan is definitely an option to consider.

Under the tax treaty between Singapore and Australia, individuals earning investment income in both countries are typically only required to pay taxes once. As we are an expert expat mortgage broker, we recommend all our clients to still lodge a tax return in both countries, particularly if they have property investment income.

Fewer and fewer lenders offer home loans to Australians living overseas. You may need to speak to a specialist Australian mortgage broker in Singapore about your Australian lending options if you are an expat in Singapore. Here at Odin Mortgage, we are experts at finding mortgage solutions for expats. Get in touch today!

Australian expats do not need FIRB approval to purchase property in Australia, however Singaporean investors would require FIRB approval and have property purchase restrictions applied under Australian laws (if they are not married to an Australian citizen).

There are differences between lenders in how they assess expat incomes – most lenders will consider 80% of an Australian expat’s Singapore salary when calculating their borrowing capacity, however some more conservative lenders will only factor in 60% of the Singapore dollar income. For other variable type income such as bonuses or commissions, additional discounting may apply.

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