Bank of China Home Loan Review for Australian Expats
Bank of China (Australia) Limited is a wholly-owned subsidiary of Bank of China Limited, which is one of the largest banks in the world. The bank has emerged as a potential solution for Australian expats, offering unique home loan options tailored to their specific needs.
Find out if Bank of China is an ideal lender for your particular situation.
- Borrow up to 80% of the property purchase price
- Access to dedicated relationship managers for overseas Aussies
- Ability to use foreign income to qualify for a home loan
Bank of China Home Loan Options
Bank of China offers the following home loan products to Australian expats living overseas.
Basic Home Loan
Fixed Rate Home Loan
Construction Loan
The Basic Home Loan from Bank of China is a simple variable rate mortgage for Australian expats looking to purchase property in their home country. It offers flexibility to make additional repayments and has no ongoing yearly fees. Approval is subject to meeting the lender's credit criteria.
Variable rate loans can be advantageous if interest rates decrease, potentially reducing overall borrowing costs. However, they may also increase if rates rise, impacting the borrower's budget.
Bank of China's Fixed Rate Home Loan allows expats to lock into an interest rate for 1 to 5 years. With a fixed interest rate, you can rest assured that your monthly repayments will remain constant throughout the predetermined term. This provides certainty over the repayment amount for the fixed period chosen before reverting to the standard variable rate.
Ideal for those wanting payment security when entering the Australian property market from overseas.
The Construction Loan from Bank of China provides financing for Australian expats looking to build a property in Australia while living abroad. These loans provide funding in stages throughout the construction process, helping borrowers manage costs effectively. Features include the ability to make progress payments to builders and interest-only repayments during construction.
Once the build is complete, the loan converts to a standard variable rate mortgage.
Bank of China Home Loan Review
Here are the pros and cons of choosing a Bank of China home loan to buy property in Australia.
| Pros | Cons |
|---|---|
Online applications make it easy for expats to apply remotely. | Can be strict credit criteria for expats with complex income. |
Competitive interest rates compared to major banks. | Added fees for international transfers and currency exchanges. |
No lender's mortgage insurance required for 20% deposit. | Limited access to branches for overseas borrowers. |
Offers package discounts when combining home loan with other products. | Penalties for early repayment of fixed rate home loans. |
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
Bank of China Home Loan Features
Bank of China offers the following home loan features.
| Feature | Details |
|---|---|
Redraw Facilities | Access additional repayments made to the loan |
Offset Accounts | Link a savings or transaction account to the home loan to offset the interest payable |
Repayment Frequency Options | Choose repayment frequencies that suit your cash flow, such as weekly, fortnightly, or monthly |
Portability | Transfer your home loan to a new property when you move |
Facts About Bank of China (Australia)
Bank of China Sydney (BOCS) was originally established in 1942 in Sydney, but operations were suspended until 1985. In 2005, Bank of China (Australia) Limited was established as a subsidiary of BOCS.
The bank operates under the regulatory framework of the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC), ensuring compliance with local banking and financial regulations.
Bank of China (Australia) plays a crucial role in supporting Chinese businesses operating in Australia and Australian businesses with interests in China. The bank's expertise in international trade and finance contributes to fostering economic ties between the two countries.
How Do I Apply for an Expat Mortgage with Bank of China?
Applying for a Bank of China home loan as an Australian expat involves a structured process that requires careful attention to detail. Here is a step-by-step guide to the loan application process.
- Preliminary Research and Planning: Explore the different loan options offered by Bank of China, considering factors such as interest rates, loan terms, and repayment options. Additionally, evaluate your own financial situation, including income, savings, and credit history, to determine the loan amount you can comfortably afford.
- Get in Touch: Once you have a clear understanding of the loan requirements, get in touch with a mortgage broker or Bank of China directly to initiate the loan application process.
- Complete the Application Form: Bank of China will provide the necessary loan application form, which must be completed accurately and comprehensively. The form will require personal details, employment information, details about the property being financed, and other relevant data. It’s crucial to double-check all entries to avoid errors that could delay the application process.
- Gather Required Documents: Along with the application form, you must submit various supporting documents to verify the information provided.
- Submit the Application: With all the necessary documents gathered, submit the completed application form and supporting paperwork to Bank of China. This can be done either in person at a branch, via mail, or through the bank’s online portal.
- Application Review and Approval: Bank of China’s loan officers will review the application and the provided documents. They may contact you for further clarification or additional information if required. The bank will assess your creditworthiness, repayment capacity, and adherence to the eligibility criteria.
- Loan Offer and Acceptance: If the application is successful and meets all the bank’s requirements, Bank of China will extend you a formal loan offer. It will include the details of the loan amount, interest rate, repayment terms, and any special features or benefits applicable to the loan.
- Loan Settlement and Property Valuation: Upon acceptance of the loan offer, the loan settlement process begins. This involves signing the loan agreement and other legal documents. In the case of property purchase, Bank of China may conduct an independent valuation of the property to ensure it aligns with the loan amount and meets the bank’s requirements.
- Disbursement of Funds: Once all formalities are completed, the loan funds are disbursed, enabling YOU to proceed with their property purchase or other financing needs.
- Loan Servicing and Repayments: With the loan disbursed, you enter the loan servicing phase. Bank of China offers various repayment options, such as direct debit, online transfers, or in-person payments at branches. Ensure timely and consistent repayments to maintain a good credit record and avoid any penalties.
Our experienced mortgage brokers can help you throughout the loan application process and even beyond settlement.
Who is Eligible?
The eligibility requirements for a home loan with Bank of China vary depending on the borrower’s circumstances. However, in general, the bank will consider the following factors when assessing a borrower’s eligibility.
- Citizenship: The borrower must be a citizen of Australia, China, or another country that Bank of China has a lending relationship with.
- Residential Status: The borrower must be a permanent resident of Australia or another country that Bank of China has a lending relationship with.
- Credit History: The borrower must have a good credit history.
- Income: The borrower must have a stable income that is sufficient to repay the loan.
- Assets: The borrower must have sufficient assets to cover the down payment and other costs associated with the loan.
Australian expats and Aussie permanent residents living overseas may be eligible for a home loan with Bank of China, but they will need to meet the bank’s specific requirements.
For example, the borrower may need to provide proof of income from their current country of residence. Foreign investors living overseas may also be eligible for a home loan with Bank of China, but they will need to meet the bank’s specific requirements. For example, the borrower may need to provide proof of investment capital and a business plan.
Our specialist mortgage brokers can help you qualify for a home loan from overseas to buy property in Australia.
What Documents Do I Require?
The documents that Bank of China typically requires for a home loan from overseas include the following.
Personal Identification Documents
This could include your passport, driver's license, or other government-issued ID.
Proof of Income
This could include your payslips, tax returns, or other documentation that shows how much you earn.
Proof of Assets
This could include bank statements, investment statements, or other documentation that shows your financial assets.
Proof of Residency
This could include your visa, residency permit, or other documentation that shows that you are legally allowed to live in Australia.
Credit History
Bank of China will want to see your credit history to assess your risk as a borrower. You can get your credit history from a credit reporting agency.
Proof of Employment
This could include a letter from your employer stating your position, salary, and length of employment.
Proof of Funds
This could include bank statements showing that you have sufficient funds to cover the down payment and other costs associated with the loan.
Property Valuation
A valuation of the property you are buying will be required to determine the amount of the loan you can borrow.
In addition to these documents, Bank of China may also require other documentation, such as a letter from your bank or a letter from your tax authority. The specific documentation requirements may vary depending on your individual circumstances.
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Other Related Products from Bank of China
Bridging Loan
Bridging loans are suitable for expats who plan to sell their existing Australian property while purchasing a new one. This type of loan bridges the financial gap between the sale of the current property and the acquisition of the new one. It provides short-term financing and is typically interest-only until the sale of the old property is finalised.
Equity Loan
Bank of China’s equity loan enables you to tap into the equity you have accumulated in your existing Australian properties. This allows you to access funds for various purposes, such as property renovations, investment opportunities, or other financial requirements.
Package Deal
To cater to the varying needs of borrowers, Bank of China offers package deals that combine home loans with other financial products, such as transaction accounts, credit cards, and insurance. These packages may come with benefits such as discounted interest rates, fee waivers, or additional features.
Need a Home Loan with Bank of China?
For Australian expats living overseas with ties to their homeland, securing a home loan through Bank of China can be a viable option. The bank’s tailored loan products, currency exchange benefits, and other advantages make it a competitive choice for expats seeking to invest in Australian property. However, thorough research, understanding the terms, and seeking professional advice are crucial steps to ensure the best possible loan outcome.
Odin Mortgage specialises in home loans for Australian expats, permanent residents, and foreign buyers (non-residents) living overseas. Our specialist mortgage brokers can find the best home loan for your needs and negotiate a better deal too. Reach out to us to speak with one of our team members about your requirements and find out how we can help you buy Australian property from overseas hassle-free!
Other Australian Lender Reviews
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
FAQs About Bank of China Mortgage
Can Australian expats apply for a Bank of China home loan while living overseas?
Yes, Australian expats living overseas can apply for Bank of China home loans, provided they meet the bank’s eligibility criteria.
What documents are required for a Bank of China home loan application?
The required documents may include identification, income proof, bank statements, and property-related information. You can find out more in the documents section above.
Does Bank of China offer interest rate discounts for Australian expats?
Yes, Bank of China may offer interest rate discounts and other incentives to attract Australian expats.
Are there any risks associated with Bank of China home loans for expats?
Yes, potential risks include interest rate changes, loan term implications, and currency fluctuations.
Is it advisable to seek professional financial advice before applying for a home loan?
Yes, seeking professional advice can help expats make informed decisions and understand the intricacies of the loan process.
Can I repay my home loan early with Bank of China (Australia)?
Yes, you can make additional repayments or repay your Bank of China (Australia) home loan early but penalties apply for fixed rate loans.
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