Webinar: Investing in Australian Property from the Middle East

Yes, Australian expats living in the Middle East can secure home loans in Australia. You’ll get the same interest rates as locals with no premium for being overseas. However, the number of lender options is limited. The main difference is understanding lender policies for foreign income and deposit requirements​.

As a non-tax resident of Australia, you are still eligible for benefits like negative gearing, which reduces taxable income on rental properties. However, there is no Capital Gains Tax (CGT) exemption if you sell your property. The Double Tax Agreement (DTA) between Australia and some Middle Eastern countries may help avoid double taxation​​.

Most expat-friendly banks in Australia allow borrowing up to 80% of the property’s value. Some banks may lend up to 90% with mortgage insurance. If you live overseas, lenders generally cap lending at 80% of the property value, and Lenders Mortgage Insurance is generally not available to non-residents; policy varies by lender. Borrowing capacity is influenced by your foreign income and financial commitments​​.

No, Australian expats in the Middle East don’t need to fly back. Licensed brokers, like Odin Mortgage, can complete the entire process, including identity verification, online. This makes it possible to apply for a mortgage and buy property remotely​.

Lenders usually discount foreign income by 20 – 40% to account for currency fluctuation risk. This can affect your borrowing capacity, but no additional fees are typically imposed on your mortgage rate because of your overseas income​​.