Expat Home Loans Australia Guide | Expat Mortgage Australia

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If you’re an Australian citizen living overseas and want to obtain a property loan (Expat Mortgage Australia)  in Australia as a non-tax resident , you need to be aware of the changing lending landscape. Over the last four years, credit policies for Australian expats have tightened due to government regulations aimed at controlling foreign investment and reducing money laundering risks in the residential property market.

This has made it more challenging for expats to secure financing for their dream home. However, with the right guidance and expertise from an experienced expat mortgage lender, it’s possible to navigate the changing policies and obtain a loan that meets your needs.

In this blog post, we’ll explore the changes in the Australia property loan landscape and what they mean for you as an expat. We’ll also provide answers to common questions about obtaining a home loan on a foreign income in Australia and simplify the overseas mortgage process.

The current lending situation for Australian Expat Mortgage

What’s still possible for an expat mortgage in Australia?

  • Got a loan in mind? Good news – age isn’t an issue! With up to 30 years’ terms available, you don’t have to worry about reaching retirement before paying it all off. So get those investments rolling, no matter how young or old you are!
  • Both variable-rate and fixed-rate mortgages are available, and you can opt for a split rate loan, which is a combination of variable and fixed rates.
  • There are no interest rate margins or penalties for being overseas. You will receive the same interest rates as Australian residents, provided you opt for the same bank and product.
  • By law, there are no early repayment penalties. This cost was abolished years ago and replaced with a one-off discharge fee (usually around AUD 300) when you pay off your loan.
  • Interest Only repayment loans are still available. Great for those seeking minimal monthly repayment and maximum cash flow flexibility.
  • You can 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 Expat Home Loans Australia?

  • Australian banks no longer offer loans in multiple currencies. While the Australian dollar has declined in value since 2011, borrowers now have no choice but to take out loans in AUD.
  • Banks based in Australia that operate overseas, such as ANZ in Hong Kong or NAB in Singapore, no longer provide residential mortgage services to individual customers. These banks now focus exclusively on corporate clients.
  • Obtaining an expat home loan can be challenging due to banks’ stringent policies. Rather than relying on personal relationships or exceptions, borrowers must meet specific criteria to be approved for a loan. Banks have become very policy-driven in recent years, meaning they stick to their rules strictly.

To summarise, banks are still willing to lend Australian property loans to Australian expats and foreign investors, but it’s the regulators, like the Australian Prudential Regulatory Authority that are imposing harsher restrictions on bank lending that is keeping a lid on foreign investment lending.

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Expat Mortgage Australia FAQs

Yes, you can. While there are some challenges in the process, we at Odin Mortgage can provide you with a seamless experience as if you were in Australia.
You can borrow up to 95% including Lender’s Mortgage Insurance (LMI), or up to 80% without LMI. Currently, most banks are lending between 60-80% LVR of the purchase price or valuation (whichever is lower).

The amount you can borrow will vary based on your individual circumstances. Contact us or check out our ‘How Much Can You Borrow?’ article for more details.

Yes, you can. As long as you can prove your income through payslips, formal bank statements, and employment contracts, your foreign currency will be accepted.

Yes, they can. However, additional requirements may apply, and not all lenders will accept self-employed applicants. Contact us for more information.

Yes, they will. But they will only check your credit score in Australia, not in your country of residence. In some cases, they may ask for a credit report from your country of residence.

In most cases, you don’t need a POA. However, in some situations, a POA may be necessary. We can advise you if this is the case.

It depends on who produces the majority of the income. If the Australian citizen is the primary income earner, it won’t be an issue. However, if the foreign national is the one working, your options may be limited. We can help you navigate this situation.

There’s also a critical tax consideration for those purchasing with foreign citizens which we will address in the latter part of this article.

For more FAQs, relating to buying a home, refinancing, fees, and expenses, please visit our FAQs page here.

For more FAQs such as those relating to buying a home, refinancing, fees and expenses, please visit our FAQs page here

Find out how expat mortgages work