Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: October 13, 2026 View profile →

Every Australian mortgage broker, whether they work with local owner-occupiers or with expats living in Dubai, must hold an Australian Credit Licence (ACL) or operate as a credit representative under one. That baseline is the same. But the licensing framework is a floor, not a ceiling, and when it comes to expat lending, the practical competence gap between a broker who specialises in non-resident borrowers and one who occasionally handles them is significant. Understanding that gap is the most useful thing an expat buyer can do before they engage anyone to help them borrow.

What Licensing Framework Do Australian Mortgage Brokers Operate Under?

Australian mortgage brokers are regulated by ASIC under the National Consumer Credit Protection Act (NCCP), which governs responsible lending obligations, disclosure requirements, and the duty to act in the client’s best interests. To legally provide credit assistance in Australia, a broker must either hold an ACL directly or be an authorised credit representative of a licence holder.

The best interests duty, strengthened by reforms that came into effect in 2021, requires brokers to prioritise the client’s interests above their own and above those of lenders. This duty applies equally whether the client lives in Melbourne or in Singapore.

Key obligations under this framework include:

• Conducting a preliminary credit assessment before recommending a product
• Disclosing fees, commissions, and any conflicts of interest
• Maintaining professional indemnity insurance
• Holding membership with an approved external dispute resolution scheme (currently the Australian Financial Complaints Authority, or AFCA)
• Meeting ongoing continuing professional development (CPD) requirements

These requirements apply to all brokers. The licensing system does not, however, assess or certify a broker’s specific competence in expat or non-resident lending. That distinction matters, and it is explored further below.

How Does the Licensing Process Differ for Brokers Who Work With Expats?

Stepping back from the licensing framework, a separate concern is what the licence does not capture. A broker who primarily writes loans for salaried PAYG borrowers in Australia can hold exactly the same ACL as a broker who navigates multi-currency income assessments daily. The licence confirms regulatory compliance; it does not measure deal-specific knowledge.

For expat borrowers, the practical implications are substantial:

• Foreign income shading: Many Australian lenders reduce (or “shade”) the assessable portion of income earned overseas. The shade rate applied can vary significantly by lender and by currency, and this data is not publicly published.
• Currency assessment policies: Different lenders accept different currencies. A broker without a live, current dataset on these policies may submit an application to a lender that will not recognise the borrower’s income at all.
• Documentation requirements: Expat borrowers are typically required to provide payslips, employment contracts, tax returns, and often certified translations, all structured to meet the standards of whichever lender is being approached.
• Deposit and LVR thresholds: Lenders often impose stricter borrowing limits for non-resident borrowers. These thresholds vary by lender and are subject to change; individual circumstances always affect outcomes. Note that specific LVR figures depend on individual lender policy and borrower profile.

A broker who is technically licensed but lacks deep familiarity with these variables is not just less helpful; they can actively cause harm by misrepresenting borrowing capacity, selecting unsuitable lenders, or triggering unnecessary credit enquiries through failed applications.

What Does “Best Interests Duty” Mean When Your Broker Doesn’t Specialise in Expat Loans?

Building on the lender-policy complexity above, the harder question is whether a generalist broker can genuinely satisfy the best interests duty when advising an expat client. The legal obligation to act in the client’s best interests requires the broker to have enough product and lender knowledge to make a genuinely informed recommendation.

If a broker lacks current, accurate data on how a given lender shades foreign income, they cannot reliably compare lender options or explain tradeoffs. In that context, the best interests duty becomes difficult to satisfy in practice, even if the broker is technically acting in good faith.

How Can an Expat Borrower Verify a Broker’s Actual Competence?

A related but distinct question from licensing is how to assess practical capability before you commit. A broker’s ACL number confirms regulatory standing. It does not confirm whether they have submitted and settled non-resident loan applications in the past 12 months.

Questions worth asking any broker before engaging them:

• What proportion of your current loan book is expat or non-resident borrowers?
• How many lenders on your panel actively accept foreign income, and can you show me how they shade it?
• How do you handle income assessed in my currency of employment?
• Can you manage the full process remotely, including settlement?
• How do you coordinate with a tax adviser on loan structuring for investment properties?

Answers that are vague, deferred, or that require the broker to “check with the lender” on basic policy questions are informative in themselves.

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