Citibank Home Loans Review for Australian Expats
Unfortunately, Citibank Australia no longer offers home loans to Australian expats living overseas.
Since its acquisition by National Australia Bank (NAB) in July 2022, all Citi-branded deposit and home loan accounts will be gradually transitioned into their equivalent NAB-branded accounts. This is estimated to be fully completed by March 2024.
Citibank Home Loans Review
Citibank Australia was first established in 1985 and was one of the first foreign banks to be granted a banking licence in Australia. It quickly became one of the largest international banks in the country, with over 1 million customers.
In 2018, Citibank Australia announced that it would be stopping residential property lending amid growing fears about a housing slowdown and its impact on the broader economy. Then, in 2021, Citi announced that it would be exiting its consumer banking business in 13 markets, including Australia. The decision was made as part of a broader strategic review of Citi’s global operations.
National Australia Bank was the successful bidder for Citibank Australia, and the acquisition is seen as a way for NAB to expand its customer base and product offering. The acquisition was completed on 1 June 2022, and NAB now owns and operates Citibank’s credit cards, savings accounts, and loans in Australia. Citibank will continue to provide transitional services to NAB until 2023.
Please check out the NAB Bank home loan review instead to find out your overseas expat home loan options available.
Aside from NAB, here are some of the other lenders from whom you can borrow:
Allow us to find you the perfect home loan.
Apply online to get expert recommendations with real interest rates and repayments.
Facts About Citibank
Citibank Australia is a subsidiary of Citigroup, Inc., a global financial services corporation headquartered in New York City. Citibank Australia was founded in 1985 and is one of the largest international banks in Australia.
It has a strong online presence and offers a variety of digital banking services, such as online banking, mobile banking, and bill pay. It also has a network of branches and ATMs across Australia.
In 2022, National Australia Bank (NAB) acquired the consumer banking business of Citibank Australia. This means that NAB now owns and operates Citibank's credit cards, savings accounts, and loans in Australia.
How Do I Apply for an Expat Home Loan?
Here are the steps involved in applying for a home loan to buy property in Australia as an Australian expat living overseas:
- Choose a Lender: There are a number of lenders that offer home loans to Australian expats, so it is important to compare different lenders and their products before you apply. You should consider factors such as interest rates, fees, and terms and conditions.
- Gather Your Documents: You will need to provide the lender with a number of documents to support your application, such as proof of income, assets, and employment.
- Get Pre-approved: Getting pre-approved for a loan will give you an idea of how much you can borrow and what your monthly repayments will be. This will help you to budget for your purchase and make an offer on a property.
- Find Your Property: Once you have been pre-approved for a loan, you can start looking for a property. It is important to get a valuation of the property before you make an offer.
- Make an Offer: When you find a property that you want to buy, you will need to make an offer to the seller. Your offer should include the purchase price, the deposit, and the closing date.
- Negotiate the Offer: The seller may not accept your offer as-is. You may need to negotiate the purchase price, the deposit, or the closing date.
- Sign the Contract: Once you have agreed on a purchase price and terms with the seller, you will need to sign a contract. The contract will outline the terms of the sale, such as the purchase price, the deposit, and the closing date.
- Pay the Deposit: Once you have signed the contract, you will need to pay the deposit. The deposit ranges from 5-20% of the purchase price.
- Close the Loan: Once the deposit has been paid, the lender will close the loan. This means that the lender will release the funds to the seller, and you will become the owner of the property.
The process of buying property in Australia as an Australian expat living overseas can be complex, but it is important to follow these steps to ensure a smooth transaction. We can help make it even easier and guide you from pre-approval through to settlement, and beyond!
Who is Eligible?
The eligibility criteria for a home loan in Australia for an overseas borrower can vary depending on the lender, but there are some general requirements that most lenders will look for. These include the following.
- Minimum Age: You must be at least 18 years old to apply for a home loan in Australia.
- Australian Citizenship or Permanent Residency: You must be an Australian citizen or permanent resident to apply for a home loan from most lenders. However, some lenders may consider foreign investors who have a visa that allows them to live and work in Australia for at least 12 months.
- Minimum Income: You need to have a minimum income of $80,000 per year to apply for a home loan from most lenders. However, some lenders may consider borrowers with lower incomes if they have a good credit history and a large deposit.
- Minimum Deposit: You need a minimum deposit of 20% of the purchase price of the property to apply for a home loan from most lenders. However, some lenders may consider borrowers with smaller deposits if they have a good credit history and a stable income.
- Good Credit History: You must have a good credit history to apply for a home loan from most lenders. This means that you must have made all your credit card payments and other debts on time in the past.
- Ability to Repay the Loan: The lender will assess your ability to repay the loan based on your income, expenses, and debt levels.
In addition to these general requirements, some lenders may also have additional requirements for overseas borrowers. For example, some lenders may require overseas borrowers to have a letter from their employer confirming their employment and salary. Other lenders may require overseas borrowers to have a local guarantor who is a resident of Australia.
What Documents Do I Require?
The documentation requirements for a home loan in Australia for an overseas borrower can vary depending on the lender, but there are some general documents that most lenders will require.
Proof of Identity
This could be a passport, driver's license, or other government-issued identification document.
Proof of Income
This could be payslips, tax returns, or a letter from your employer confirming your employment and salary.
Proof of Assets
This could be bank statements, property valuations, or share certificates.
Foreign Exchange Approval
If you are a foreign investor, you will need to obtain foreign exchange approval from the Australian government before you can buy property in Australia.
Visa Documentation
If you are not an Australian citizen or permanent resident, you will need to provide documentation of your visa status.
Guarantor
Some lenders may require you to have a guarantor who is a resident of Australia. The guarantor will be responsible for repaying the loan if you are unable to do so.
In addition to these general documents, some lenders may also require additional documentation. For example, some lenders may require overseas borrowers to have a letter from their bank confirming their financial standing. Other lenders may require overseas borrowers to have a valuation of the property they are buying.
Here are some additional tips for overseas borrowers who are applying for a home loan in Australia.
- Start the Process Early: It can take several weeks to gather all the required documentation and get approval for a home loan.
- Work with a Mortgage Broker: A mortgage broker can help you understand the different types of home loans available and find the best loan for your needs.
- Be Prepared to Provide Detailed Financial Information: The lender will want to see proof of your income, assets, and liabilities.
- Be Patient: The application process can be time-consuming, but it is important to be patient and thorough.
Secure a Home Loan to Buy Property in Australia
Are you an Australian expat or foreign buyer living abroad, eager to make your dream home or investment a reality Down Under? While Citibank may no longer be an option for you, there’s no reason to worry!
Odin Mortgage is a seasoned mortgage brokerage specialising in Australian expat home loans, and we are here to assist. With our wealth of experience and extensive network, we’re well-equipped to discover the ideal mortgage solution tailored to your needs. Our dedicated team is committed to ensuring you secure the best deal, facilitating a seamless home buying process.
Reach out to us today and take that essential first step towards turning your homeownership aspirations into a wonderful reality. Together, let’s find the perfect mortgage for you!
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 Citibank
Can Australian expats living overseas apply for Citibank home loans?
Unfortunately, Citibank Australia no longer provides home loans to Australian expats and non-residents living overseas. Please check out why in the sections above.
What should Australian expats consider before choosing a lender for their home loan?
Australian expats should consider factors such as fees, charges, and eligibility criteria when choosing a lender for their home loan.
What documents do I need when applying for an Australian expat home loan?
As an expat applicant, you are generally required to provide identification documents, income proof, and other relevant financial documentation to support your loan application.
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