How Can I Prove My Foreign Income in Australia to Lenders?

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Making an application to an Australian lender for a mortgage as an Aussie expat and looking for ways to prove your foreign income in Australia? We know what you might be thinking: all the documents and investment property calculations are looking like a headache waiting to happen.

But it doesn’t have to be so complicated—knowing the key ways to prove your foreign income to expat mortgages providers is a huge step in the right direction for a home loan, so think of this article as the cheat sheet for when it comes to knowing how you can prove your foreign income in Australia to lenders.

How should I declare any foreign income that I earn to a lender?

Declaring foreign income to a lender requires you to submit certain documents written in English. If you have financial documents written in the language of your country of residence, you might require an interpreter’s certificate.

How Can I Prove My Foreign Income in Australia to Lenders?

How can I prove my foreign income in Australia to lenders with an interpreter’s certificate?

In response to the question “how can I prove my foreign income in Australia to lenders” as an Aussie expat, getting the required documents translated is a crucial step, and an interpreter’s certificate is important. It’s an official document that demonstrates that the body you have chosen to translate your financial documents is official and valid in terms of their authority.

Head to your Australian Consulate in your location and ask for them to translate the financial documents into English, and you will then be able to get your interpreter’s certificate to present to your Australian lender.

Which factors do lenders consider when assessing foreign paperwork?

Lenders consider certain key factors when assessing foreign paperwork, such as whether your country of residence has annual leave. This can affect the assessment process in terms of your foreign income.

Lenders will also consider whether your country of residence has a tax system, which will make the assessment easier. They will also consider whether you have payslips that correspond to your foreign income and use this during the assessment.

Tax returns are another factor that lenders will consider when assessing foreign income and borrowing power. Alternatively, if you’re self-employed, you can submit a letter from your accountant if your lender accepts this as proof of your foreign income.

How can I prove my foreign income in Australia to lenders and which documents will I need?

When thinking about the answer to the question “how can I prove my foreign income in Australia as an expat?” there are certain documents that your lender will require, including:

  • An employer letter
  • A duplicate or photocopy of your contract of employment
  • Payslips for the past two months
  • Bank statements for the last three months
  • A tax return that covers the previous financial year

Now, in answer to the question “how can I prove my foreign income in Australia to lenders as an expat?”, every lender will require a different set of processes. Proving your foreign income will depend on certain stipulations.

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How can I prove my foreign income in Australia to lenders if I am self employed?

To prove your foreign income in Australia to lenders as an expat, being self employed is one factor that might require a different set of documents. Your lender might not accept a tax return in this case and if they accept them, you might need to have the tax return certified. In any case, you will need to check with the lender.

If you are self employed, lenders may want to see:

  • Tax returns that cover the previous two financial years
  • An accountant letter to verify your income if you can’t get the tax returns
How Can I Prove My Foreign Income in Australia to Lenders

Proving your foreign income in Australia: How to do it with ease

So, when thinking about the question “how can I prove my foreign income in Australia to lenders”, if you’re an expat a few steps will be required, but the process can be done with ease. You can prove your foreign income by:

  • Getting an interpreter’s certificate
  • Having your documents translated into English
  • Providing an employer letter
  • Giving your lender tax returns for the past two financial years and a letter from your accountant

If you’re in doubt about the processes required to prove your foreign income in Australia to lenders, the resources we’ve got will help expats with this. Go to Odin Mortgage and take a look at our services, or use our resources including mortgage calculators, stamp duty calculators and mortgage rates!

How Can I Prove My Foreign Income in Australia to Lenders

How Can I Prove My Foreign Income in Australia to Lenders FAQs

How can I prove my foreign income in Australia to lenders if my country of residence doesn’t have a taxation system?

If you reside in certain countries that do not have a taxation system, including the UAE, it could be difficult to be assessed by some Australian lenders as your payslips won’t display any tax. In cases like these, choosing the right lender is important, who will use the payslips and the taxation system in Australia to assess your foreign income.

Which processes will lenders use to assess my foreign income?

To assess your foreign income, your lender will convert your foreign income into Australian dollars. Most lenders will then reduce the income by 10%, which is known as a buffer that helps with fluctuations in currency.

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

Are income types such as commission accepted as foreign income?

Certain lenders who operate outside of the Australian Prudential Regulation Authority will accept income times such as commission. Other lenders do not accept bonuses or commission as part of the calculation of your income assessment and your borrowing power. Because of this, you should choose your lender wisely and shop around.

Is my foreign partner’s income accepted for an expat mortgage?

Combined income can put you in a better position in terms of borrowing power, but few lenders will accept a foreign partner’s income. If your partner lives in Australia, if you have children with your partner, or if you have been married for more than two years, these factors can strengthen your application.

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