Australian Expat Home Loans
As an Australian citizen living abroad, obtaining an Australian property loan as a non-tax resident of Australia is available but gone are the days when banks would hand out loans to anyone who asked. Processing Australian expat non-resident home loans have changed with additional policies.
The tightening of credit policies for Australians expats has been gradually increasing over the last four years. The high levels of restriction we see today are the results of the Australian regulators’ actions to control the influx of foreign investments into residential property and minimising money laundering risk.
Read on to see how the lending landscape has changed and what this means for you, and get the answers you need on home loans on a foreign income in Australia.
The current lending situation for Australian expat home loans
What’s still possible for an expat home loan in Australia?
- You can still get a loan term of 30 years regardless of age. There have been talks to limit this to the retirement age, but for now, your grandma can still get a loan for the full 30 years.
- Variable-rate and Fixed-rate mortgages are available as standard. With the option to do split rate loans, i.e. a combination of variable and fixed.
- No interest rate margins/penalty by being overseas. You’ll get the same interest rates as those residing in Australia will – assuming the same bank/product.
- No early repayment penalties by law. This cost was abolished years ago and replaced with a one-off discharge (admin) fee when you pay off your loan – typically around AUD 300.
- Interest Only repayment loans are still available. Great for those seeking minimal monthly repayment and maximum cash flow flexibility.
- Able to cash out / release equity from existing Australian properties you own to borrow more for investment purposes such as buying another property, renovations etc.
What’s not possible for Australian expat home loans?
- Australian based banks no longer offer multi-currency loans – only AUD now. With the AUD depreciating since 2011 you were better off borrowing in AUD anyway, now you don’t have of choice, sadly.
- Australian banks based Overseas. E.g. ANZ Hong Kong, NAB Singapore, CBA UK etc. No longer offer residential mortgage services. You’ll see them around, but they’re only serving corporate institutions now.
- Relying on policy exceptions to get your expat home loan approved. The lenders have now become very, very policy-driven. I.e. These are all our rules. Do you meet them? Y/N “But I’ve banked with you lot for 20 years!” doesn’t get you very far nowadays I’m afraid.
In truth, the banks are still hungry to lend Australian property loans to Australian expats, but it’s the regulators, namely the Australian Prudential Regulatory Authority that is imposing harsher restrictions on bank lending that is keeping a lid on foreign investment lending, which includes you, as Aussie expats.
Get a free Australian mortgage assessment today.
Australian Expat Home Loans FAQs
How do I get an Australian expat home loan if I’m not in Australia?
What is the maximum LVR for Australian expats?
How much can I borrow for an Australian expat home loan?
This is a simple question with a complex answer. Each individual will be different, and we go into detail with examples on how much you can borrow, how to increase your borrowing power, and more in this article ‘How Much Can You Borrow?’ for Australian expats looking for a home loan.
I earn 'X' currency. Will I be eligible to apply for a home loan with foreign income in Australia?
The better question the lenders will be asking instead is, can the applicant prove his/her income? By way of payslip, formal bank statements, and employment contract?
If yes, then it’s very likely your type of foreign currency will be eligible and accepted to get an Australian property loan.
I'm self-employed. Can I get an expat home loan for Australia?
The few that do will have additional requirements. Contact us or start an online application, and we’ll be happy to advise you about Australian expat home loans for self-employed individuals.
Will the banks in Australia do a credit check on me?
When you apply to the banks, early in their assessment phase, a credit check will be performed but only in Australia. The banks in Australia will not be able to do a credit check for the country you reside in.
Do I need a Power of Attorney (POA) to apply for an expat home loan in Australia?
Aside from that, the majority of Australian expats applying for a home loan do not need a POA, and we will assist you with the signing process.
I'm married to a foreign national. Can we get an Australian expat home loan?
For more FAQs such as those relating to buying a home, refinancing, fees and expenses, please visit our FAQs page here