Can I Get a Mortgage in Australia With Overseas Income?



Aussie expats might wonder whether they can get an Australian mortgage with foreign income. Well, while earning in a foreign currency might make the process a little more challenging, it’s not impossible to get an Australian home loan. In fact, if you speak to a specialist mortgage broker, you’ll find a lender willing to accept your overseas income in no time at all. 

We’ll answer all your questions and more.

Can I Get a Mortgage in Australia as an Expat?

All Australian citizens can apply for a home loan. It doesn’t matter that you live and work overseas. Aussie expats are still Australian citizens. This means that you’re eligible for all the same loan types, terms, and additional features as anyone earning in Australia. Furthermore, you won’t need to apply for FIRB approval—only foreign nationals need to do so. 

The only issue Aussie expats might face is earning in a foreign currency. While you can still get a mortgage, you might need to approach specialist lenders.

Can I Get a Mortgage in Australia

Can I Get a Foreign Currency Loan?

While you used to be able to get a home loan in Australia in different currencies, they now only payout in Australian dollars. You can’t get a foreign currency or multi-currency loan any longer.

Does Foreign Income Qualify for Mortgage?

Yes, plenty of lenders accept foreign earnings as evidence of income in your home loan application. However, they might not assess your entire net income depending on your currency. Some currencies are less stable. Therefore, the lender might consider less than 100% of your income. This can significantly reduce your borrowing power.

What Constitutes Foreign Income?

Foreign income is any earnings from overseas. You might have a job or investment property in another country. Your salary, rental returns, or capital gains from abroad count as foreign income. Some currencies are viewed more favourably than others. 

Tier 1 currencies, such as GBP, EUR, USD, and SGD, are more stable. The lender might consider between 80 – 100% of your tier 1 foreign income. Tier 2 currencies include HKD, the UAE dirham, and the Saudi Arabian riyal. To account for exchange rates, lenders might only consider 50 – 80% of your earnings in tier 2 currencies.

How Do You Prove Foreign Income for a Mortgage?

To maximise your borrowing power, you want to declare all your foreign income. The more financial documents and evidence of earnings you supply, the more favourably the lender will look at your application. Evidence can include payslips, tax returns, bank statements, letters of employment, and letters from your accountant.

If your financial documents are in another language—which they’re likely to be if they detail foreign income—you need to get them translated. Most lenders only accept evidence written in English. The interpreter must have a licence.

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

What if I Also Earn a Portion of My Income in Australian Dollars?

If you primarily live and earn overseas but own an investment property in Oz, your Australian income will work in your favour. For instance, if 30% of your net income is in Australian dollars, the lender might offer you a higher loan to value ratio. Make sure you also supply evidence of Australian income to your lender.

Can I Get a Mortgage in Australia With Overseas Income

Can I Use Foreign Assets as Security for My Loan?

Typically, the lender will allow you to use Australian assets as security for your loan. For example, you can secure your property against a mortgage. Lenders will also allow you to use foreign assets to improve your borrowing power

However, not all lenders will let you use foreign assets as security. It’s usually judged on a case-by-case basis. Therefore, you will need to speak to a mortgage broker about your situation.

What Is the Maximum LVR on an Overseas Resident Loan?

If you’re an Australian expat, you can apply for up to 95% LVR with most lenders. However, to avoid paying Lenders Mortgage Insurance, it’s best to apply for an LVR of 80% or lower. Non-Australian citizens might only get loans between 60 – 80% LVR, depending on their borrowing power.

To improve your overseas borrowing power, ensure you have records of all your foreign income and try to boost your credit score.

Will Obtaining a Foreign Income Home Loan Be More Difficult?

Depending on what currency you earn, you might face more challenges than the average Australian trying to obtain a home loan. With so many currencies worldwide, lenders cannot assess each individual expat application. 

Therefore, they tend to view certain currencies less favourably than others. Accordingly, if you earn a tier 2 currency, you might struggle to maximise your borrowing power. However, if you have a sufficient 20% deposit and evidence of your income, you shouldn’t struggle to receive home loan approval.

Will a Guarantor Loan Help?

If you want to improve your borrowing power while earning a foreign income, you might consider applying for a guarantor loan. If you have friends or family living in Australia willing to put up their own Australian assets as security, you could improve your LVR to 105%.

Can I Get a Mortgage in Australia With Overseas Income

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Frequently Asked Questions

Can I Get a Mortgage in Australia if I Work Overseas?

If you’re an Australian expat living and working overseas, you can apply for all Australian home loan types. You might find your foreign currency earnings weaken your borrowing power. Yet, expats can apply for 95% LVR with all the same home loan features as anyone living in Australia.

Can Australians Living Overseas Buy a House in Australia?

Australians do not need to apply to FIRB for approval to purchase property in Australia, even if you’re buying with a foreign spouse. There are no restrictions. On the other hand, foreign nationals will have to apply to FIRB and may only purchase new buildings or vacant land.

Does Foreign Income Qualify for Mortgage?

Plenty of lenders in Australia accept foreign income. However, they might only view 50 – 100% of your net income if you earn a foreign currency to account for fluctuating stability. Speak to a mortgage broker about how a lender might view your foreign earnings

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