Mortgage Documents Required in Australia for Non Residents
Are you a non resident looking to buy a home in Australia? If so, you may be wondering what mortgage documents you need to provide when applying for a mortgage. This article discusses the common mortgage documents that non residents need to provide when applying for a mortgage. We will cover everything from proof of income to tax identification numbers.
Typical Mortgage Documents Required For A Non Resident Mortgage Australia
If you’re a non resident seeking a mortgage in Australia, you’ll typically need to provide certain mortgage documents to the lender to support your application. The specific requirements may vary depending on the lender and your individual circumstances.
However, here are some common mortgage documents often requested by lenders for non resident mortgage applications in Australia.
- Passport: A valid passport is typically required to establish your identity and confirm your non resident status.
- Visa or residency status: Provide documentation to prove your legal right to reside in Australia, such as a valid visa or residency permit.
- Income verification: You may need to provide proof of your employment, including a letter from your employer stating your position, salary, and length of employment. Additionally, you may need to provide recent pay slips or tax returns to verify your income.
- Credit history: Some lenders may require a credit report from your home country or evidence of your credit history if you have loans or credit accounts there. This helps lenders assess your creditworthiness.
- Bank statements: Provide statements from an Australian bank account to demonstrate your financial stability and ability to meet mortgage repayments.
- Property details: If you have already identified a property you wish to purchase, provide the property details, including the address, purchase price, and any relevant documentation related to the property.
- Deposit: Lenders may require you to show proof of savings or a deposit that you can contribute towards the property purchase. This could include bank statements or investment account statements.
- Tax returns: Depending on your specific circumstances, you may need to provide tax returns for the past few years to demonstrate your income and financial position.
- Other debts and obligations: If you have existing loans or financial obligations, provide documentation related to those commitments, such as loan statements or credit card statements.
Foreign Investment Review Board (FIRB) Approval
Non-residents may need Foreign Investment Review Board (FIRB) approval to purchase residential property. This government body oversees foreign investment in Australia.
To obtain evidence of FIRB approval, you can provide the following mortgage documents:
- FIRB Approval Letter: Once your application is approved, you will receive an approval letter from the FIRB. This letter will confirm that you have received the necessary permission to purchase residential property in Australia as a non resident. You should provide a copy of this letter to your lender as evidence.
- FIRB Application Receipt: If you have submitted an application to the FIRB but have not yet received a formal approval letter, you can provide the receipt or acknowledgment of your application as evidence of your intent to comply with FIRB regulations.
FIRB approval is required for most non resident buyers purchasing residential property in Australia, but there may be certain exemptions or thresholds that vary depending on the type of property and the buyer’s circumstances. Requirements vary based on property type and buyer details.
It’s recommended to consult with a mortgage broker to ensure you understand and meet the FIRB requirements specific to your situation.
How To Get A Non Resident Mortgage
Getting a non resident mortgage in Australia involves several steps. Here’s a general overview of the process:
- Research lenders: Start by researching lenders who offer non resident mortgages in Australia. Look for institutions that specialise in serving non resident borrowers or have specific programs designed for them.
- Understand eligibility criteria: Familiarise yourself with the eligibility criteria set by lenders. Requirements may vary, but typically include factors such as a valid visa or residency permit, proof of income, deposit/savings, and satisfactory credit history.
- Gather documentation: Prepare the necessary mortgage documents required by lenders, which may include your passport, visa/residency documentation, employment verification, income proof, bank statements, tax returns, and property details. Additionally, you may need evidence of FIRB approval if applicable.
- Pre-approval: Submit your mortgage application to the selected lender. They will assess your application, review your documentation, and conduct a credit check. If approved, you’ll receive a pre-approval letter stating the loan amount you qualify for, which can strengthen your position when making an offer on a property.
- Property search and offer: Begin your property search within your budget and preferences. Once you find a suitable property, make an offer to the seller, which can be subject to finance and any other conditions you deem necessary.
- Formal loan application: Once your offer is accepted, you’ll need to provide additional documentation requested by the lender to complete the formal loan application process. This may include a sales contract, property valuation, and any other requirements set by the lender.
- Loan approval and settlement: The lender will review the property details, conduct a valuation, and finalise the loan approval process. Once approved, you’ll proceed to the settlement stage, where legal and financial obligations are fulfilled, and ownership of the property is transferred.
Applying with the Proper Mortgage Documents With Odin Mortgage
When it comes to obtaining a non resident mortgage in Australia with the right mortgage documents, it is beneficial to seek assistance from a specialised mortgage broker.
At Odin Mortgage, we have expertise in handling non resident mortgage applications and can provide valuable guidance throughout the process. Our dedicated team can help you navigate the complexities, connect you with suitable lenders, and ensure your needs are met.
Contact our team today to get started on your non resident mortgage journey.
Get a free Australian mortgage assessment today.
Frequently Asked Questions
The specific mortgage documents needed may vary depending on the lender, but common requirements include a valid passport, visa or residency status, employment and income verification, Australian bank statements, property details, evidence of savings or deposit, tax returns, foreign income verification, and any other financial obligations.
Yes, as a non-resident, you will generally need to provide evidence of Foreign Investment Review Board (FIRB) approval to purchase residential property in Australia. This approval is required for most non-resident buyers, and you can provide the FIRB approval letter or application receipt as evidence.
Some lenders may require a credit report from your home country or evidence of your overseas credit history to assess your creditworthiness. It’s advisable to check with the lender regarding their specific requirements for credit history documentation.