How to Get a Non Resident Home Loan in Australia (Foreign National)
Australian property continues to be a top choice for global investors, known for its stable rental yields and strong capital growth potential.
Yet, for non-residents and expats earning income overseas, accessing this market requires navigating distinct lending criteria, particularly around income assessment and lender policies.
While non-resident home loans are available, they often come with specific stipulations, such as Foreign Investment Review Board (FIRB) approval and restrictions generally limiting purchases to new properties.
This guide breaks down the essentials of securing a mortgage from abroad, explaining how these loans work in practice to help you capitalize on Australia’s dynamic real estate market.
Key Points on Mortgages for Foreigners in Australia
- Higher Deposit Requirements: Foreign buyers typically need a larger deposit, often 30-40% of the property value, as lenders generally restrict the Loan-to-Value Ratio (LVR) for non-residents to 60-70%.
- Limited Lender Availability and Higher Rates: Only select lenders offer mortgages to foreign nationals, and they usually charge higher interest rates to offset the perceived risk.
- FIRB Approval for Purchases: Foreign buyers must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing property, incurring additional fees and conditions depending on the property type.
Home Loan for Foreigners in Australia
According to the Foreign Investment Review Board (FIRB), if you’re a foreigner or a non-resident in Australia, you can be considered as a non-resident getting a home loan to buy property in Australia so long as you clearly understand the property market. You must also adhere to the rules set by the review board in its application process.
Australian mortgage is also a great option for temporary residents who are looking to buy property in Australia. There are lenders, banks, financial institutions, and credit groups, among others, who may be able to provide you with loanable funds which you can use to acquire property, albeit at a much stricter mortgage approval criteria compared to Aussie residents and permanent residents.
Investing as a Non-Resident in Australia
If you’re a non-resident and have been considering investing in Australian real estate, you’d be happy to know that there are various types of home loans in Australia available for you.
However, there are some restrictions such as only being able to purchase new properties and having to get FIRB approval. Without further ado, let’s get to the nuts and bolts of getting a non-resident mortgage in Australia.
As a non-resident, there’s always the concern about being assessed differently from residents of Australia for a foreign investor mortgage. It may come in the form of higher fees or increased interest rates in your non-resident Australian home loan.
You must be prepared to accept these realities and consider if it’s something that you can bear, weighing the costs and the benefits of real estate investment in Australia. If you earn an overseas income, our advisors can recommend suitable foreign national home loans in Australia for your consideration.
Most lenders have non-resident home mortgage packages that are attractive and include a unique hybrid offering or tailored-fit deal for foreigners buying property in Australia, considering their exceptional circumstances, needs, and preferences. It’d be wise to scrutinise every feature of your non-resident mortgage in Australia to ensure you’re getting the best offer available.
Some costs that you must be prepared for are fees on the property inspection (approx $300-$500), foreign citizen stamp duty surcharge (an extra 3-8% on top of standard rates), FIRB approval ($5,700 for properties under $1 million), loan application fees ($700-$1000), lenders mortgage insurance (1-2% of loan amount), title search and registration fees ($150+), and legal fees for conveyancing ($1500-$3000).
It may accumulate as you progress with your purchase, so it’s always good to draw up your budget before applying for a foreign national home loan or home loans for temporary residents in Australia.
Deposit Requirements for Home Loans for Non-Residents
The amount of deposit required differs depending on the non-resident category you belong to and the products of the lenders.
Typically, overseas citizens can expect to borrow between 30% to 80% of the purchase price of the property as a foreign resident buying property in Australia. Some lenders may require a higher deposit around 40% for non-residents.
Foreign Investment Review Board (FIRB) Approval
Non-residents can be property owners but they face certain property purchase regulations in Australia. They must seek and gain the approval of the FIRB. The first step should therefore be checking your eligibility as a foreign resident buying property in Australia through the FIRB website.
When your purchase offer progresses, and you have a specific property in mind, the FIRB must also be sought for another approval on that particular piece of land. There are fees involved in the evaluation, but FIRB will, most likely, grant your request, especially if your purchase will be in support of more significant economic growth in that precise location.
Getting FIRB endorsement as a non-resident investing in Australian property usually takes 1-2 months. The fees can change upon the estimation of the private property or land sought to be bought. If you belong to the groups listed below, you don’t require an FIRB endorsement:
- The Australian residents
- The perpetual Australian inhabitants
- New Zealand (NZ) residents
- Other exempted categories
Overseas Resident Home Loan Requirements
Overseas resident home loan requirements in Australia for foreign nationals living overseas typically include the following.
Eligibility Criteria
Visa Status: Non-residents must hold a valid visa, such as a temporary resident visa, work visa, or student visa. Certain visas may have specific conditions or restrictions.
Foreign Investment Review Board (FIRB) Approval: Most foreign nationals must obtain FIRB approval before purchasing property in Australia. This applies to temporary residents and non-residents. FIRB approval is generally required for all types of residential properties.
Financial Requirements
Proof of Income: Lenders require detailed proof for foreign income verification, which can include payslips, tax returns, and employment contracts. The income should be in a strong currency, preferably AUD, USD, EUR, GBP, etc.
Deposit Requirement: Non-residents typically need a higher deposit, usually around 20% to 30% of the property value. This is higher than what is generally required for Australian citizens and permanent residents.
Credit History: A good credit history in the country of residence is important. Some lenders might require a credit report from the applicant’s home country.
Documentation
Identification Documents: Valid passport, visa details, and possibly additional identification documents.
Bank Statements: Recent bank statements (usually the last three to six months) to verify savings and transaction history.
Employment Verification: Letter from the employer verifying employment status, position, and salary.
Additional Requirements
Australian Bank Account: Some lenders may require non-residents to open an Australian bank account for transaction purposes.
Power of Attorney: In some cases, a power of attorney might be required if the applicant cannot be present in Australia to sign documents.
Property Type Restrictions: Non-residents may face restrictions on the type of property they can purchase, such as only being allowed to buy new properties or off-the-plan properties.
Loan Currency: Some lenders might offer loans in foreign currencies, but this can expose international borrowers to exchange rate risks.
Lender-Specific Requirements
Interest Rates and Loan Products: Non-residents may be subject to different interest rates and loan products compared to Australian residents. These can vary significantly between lenders.
Maximum Loan Amount: There may be caps on the maximum loan amount available to non-residents, depending on the lender’s policies and the applicant’s financial profile.
Private Home Refinance
Minimum Equity or Deposit: Typically, lenders require foreigners to have a Loan-to-Value Ratio (LVR) of 60-70%, meaning a 30-40% equity stake in the property. This lowers the loan risk for lenders.
Proof of Income and Financial Stability: Foreign borrowers must provide verifiable income proof, often including foreign payslips, tax returns, and bank statements. Income may be subject to a discount of around 20-40% to account for currency fluctuation risks.
Foreign Investment Review Board (FIRB) Compliance: While FIRB approval is primarily needed for property purchases, some lenders may still request proof of FIRB compliance, especially if there were conditions attached during the initial property purchase.
Credit History: Foreigners need to demonstrate a strong credit history. Although Australian credit checks may not apply, a credit report from their home country might be required.
Purpose of Refinance: Lenders may limit refinancing options based on the property’s use. Owner-occupied homes are often viewed more favorably than investment properties for foreign nationals.
Documentation: Documents required to apply for a home loan often include:
- Identification (passport, visa status)
- Proof of foreign income (payslips, tax documents)
- Bank statements (typically three to six months)
- Employment contracts or proof of business income for self-employed applicants
Currency Risk Assessment: Some lenders may require an assessment of currency risk, especially if the borrower’s income is in a volatile currency, which may affect borrowing capacity.
Struggling With Your Australian Property Buying Process?
-
Navigating the Australian property market from anywhere in the world can feel complex and overwhelming. We simplify your property journey at every stage. - Get tailored mortgage strategy—whether you’re buying, refinancing, or optimising your portfolio—so you can move forward with clarity and confidence, wherever you’re based.
- Get tailored Australian expat mortgage advice
4.9 | Based On 330+ Reviews
What Are the Features of Non-Resident Mortgages?
Foreigner Mortgages
The main features of foreigner mortgages in Australia are as follows.
Higher Interest Rates: Compared to local borrowers, foreign nationals generally face higher interest rates, as lenders apply risk premiums to non-residents without Australian citizenship or residency.
Lower Loan-to-Value Ratios (LVR): Foreign buyers usually have access to a lower LVR, often capped at 60-70%, meaning they may need a 30-40% deposit.
Limited Lender Options: Only a few Australian banks and lenders offer mortgage products to foreign nationals, leading to fewer choices and more specific conditions, often requiring robust documentation and additional eligibility checks.
Foreign Investment Review Board (FIRB) Approval: Non-residents need FIRB approval to purchase residential properties in Australia, which involves additional fees and conditions based on the type of property and intended usage.
Currency and Income Discounting: Like expatriates, foreign borrowers often face discounted income assessments (typically 20-40%) to account for currency exchange risks.
These features reflect the stricter regulatory environment for foreign buyers compared to Australian citizens and permanent residents.
Australian Expat Home Loans
Non-resident mortgages for Australian expats typically offer the following key features.
- Interest Rates: Expatriates can access the same interest rates as local borrowers, with no premium applied for being overseas, though limited lender options are available.
- Loan-to-Value Ratio (LVR): Many lenders allow up to 80% LVR, though select lenders like CBA may offer up to 90% with mortgage insurance.
- Income Considerations: Foreign income is generally discounted by 20-40% to account for currency fluctuations, with adjusted calculations based on local tax rates or effective rates depending on the lender.
- Property Types: Available for investment or residential properties in Australia, supporting both purchasing and refinancing options.
These features enable Aussie expats to secure property finance without returning to Australia, accommodating various financial and residency situations.
Who Are Looking for Mortgages in Australia for Non-Residents?
Overseas residents seeking homeownership in Australia can be categorised into two groups:
- Temporary Residents (TRs): Temporary residents are those who visit the country on a temporary visa, allowing them to stay beyond 12 months. They can apply for a home loan for temporary residents of Australia with the approval of FIRB and adherence to specific requirements.
- Foreigners: Overseas citizens are people who do not have Australian citizenship and are considered foreign investors. These individuals usually have to go through the FIRB for approval before taking out a non-resident home loan in Australia.
Which Lender Should I Choose for a Non-Resident Mortgage in Australia?
Non-resident home loan options in Australia may be limited, so the best thing to do is speak to one of our non-resident Australian mortgage experts to find the best solution for you.
The good news is that there are indeed mortgage lenders for foreigners – some specialise in lending to foreign investors, Australian expats, and new migrants.
How Do the Banks View Foreign Investors?
Policies on non-resident home loans in Australia differ from bank to bank. The bank can outrightly decline since the nature of the circumstances of non-residents poses a high risk to their institution. Some banks do not accommodate customers outside of Australia.
Banks may choose to lend to non-residents but with certain restrictions in the Australian mortgage lending process. It can be in the loanable amount or in the documentary requirements to support your application. Learn more about the best mortgage rates here.
Non Bank Lenders
You can also choose to deal with other non-bank lenders licensed to provide non resident Australian home loans to consumers. Like banks, these institutions will evaluate your application and guide you through the entire process until settlement.
Non bank lenders are a common solution for a foreigner resident buying property in Australia as they are usually targeting this particular niche of the market so you will know your eligibility pretty quickly.
The process is also made seamless and hassle-free and they make sure the loan package is truly tailored to fit your unique needs. As a non-bank niche lender, they can give you what banks and other financial institutions cannot.
Interest Rates on Non-Resident Mortgages
Thanks to the ever-evolving credit market, interest rates offered via non-resident home loans have come closer to the ones given to residents, although there is still a 0.5-1% premium for non-residents investing property in Australia.
Non bank lenders do, however, have a number of “risk fees” or “application fees” to compensate them for the additional risk they take by providing non resident mortgage loans in Australia.
Buying Property in Australia as a Non-Resident
Investing in Australian real estate as a non-resident can be a rewarding opportunity, offering stable rental returns and the potential for long-term capital growth. While navigating the process of obtaining a non-resident home loan may seem complex, having a knowledgeable partner can make all the difference.
With Odin Mortgage, you’ll have access to expert guidance tailored specifically for foreign nationals. Our team specialises in helping international buyers understand their options, secure financing, and make confident, informed investment decisions in the Australian property market.
Speak with our mortgage brokers today for a mortgage consultation! See how we can help you secure your non-resident home loan. Our team of experts is here to guide you every step of the way.
FAQs about Non-Resident Mortgages in Australia
Can a foreigner get a home loan in Australia?
Yes, foreigners can get a home loan in Australia, but it often comes with extra requirements.
Non-residents and temporary visa holders may face higher deposit demands (usually 20-30% of the property value) and stricter eligibility criteria. Additionally, you may need approval from the Foreign Investment Review Board (FIRB) before purchasing.
Each lender’s policies vary, so it’s wise to check specific requirements and consult a mortgage broker experienced with foreign buyers.
Can foreigners borrow money from banks in Australia?
Yes, foreigners can borrow from banks in Australia, but terms are generally stricter. Non-residents and temporary visa holders may face higher interest rates, larger deposit requirements, and may need to meet specific visa or income criteria.
Approval often depends on the type of visa, financial profile, and the lender’s policies. Consulting with banks or mortgage brokers familiar with foreign lending can help clarify options and requirements.
Can I buy a house in Australia as a non-resident?
Yes, non-residents can buy property in Australia, but there are some restrictions.
Generally, non-residents must get approval from the Foreign Investment Review Board (FIRB) and are limited to purchasing new properties or vacant land rather than existing homes.
The approval process and fees vary, so it’s wise to review FIRB guidelines and consult a professional to understand the requirements and costs involved.
How do I get FIRB approval as a non resident who is buying investment property in Australia?
To get FIRB approval as a non resident who is buying investment property in Australia, you must first check your eligibility on the government’s website, and submit an online application through the Australian Taxation Office (ATO).
If you are eligible, the next step is to seek their approval for the specific piece of land you are interested in. It typically takes 1-2 months to receive approval. If you’re considering purchasing a home, simply take 5 minutes to complete our online mortgage assessment and get you your pre-approval letter in no time!
How much will temporary Australian residents need to pay for stamp duty?
Stamp duty varies depending on the state or territory you’re buying in, but most non resident buyers can expect to pay an additional 3-8% surcharge on the value of the property, on top of the standard Stamp Duty rates in that state/territory. However, there’s currently no Foreign Buyers Stamp Duty Surcharge in the Northern Territory and the ACT.
Check out our definitive guide for an in depth look at stamp duty in Australia.
Can you get a mortgage if you're not an Australian resident?
Yes, you can get a mortgage in Australia as a non-resident, but the process often involves stricter terms.
Non-residents may need a larger deposit (typically 20-30%), face higher interest rates, and meet specific income or visa requirements. Approval depends on the lender’s policies and your residency status, and some banks are more flexible than others.
Consulting a mortgage broker who specialises in foreign lending can be very helpful in navigating these requirements.
Can non-residents of Australia invest in property with a loan?
Yes. The Australian government is all for encouraging temporary residents to get in on the property action and buy non resident investment properties from overseas, such as Singapore.
Will the rental income from an investment property in Australia be subject to taxes after a non-resident investor buys the property?
Yes, rental income earned from an investment property in Australia is subject to taxes as per local laws. However, the income that is taxed is the net income after deducting rental expenses.
To ensure maximum deductions on rental income, it is recommended that investors take a loan from an Australian bank when buying property as a non resident.
Additionally, Australian accountants can help identify various property expenses that can be used for tax deductions, enabling investors to maximise their investment income. So, while rental income from an investment property in Australia may be subject to taxes, with the right strategies in place, investors can still reap significant financial benefits.
What documents will I need to provide when applying for a non-resident home loan?
When applying for a non resident home loan in Australia, you will typically need to provide the lender with evidence of lawful residence, your passport and visa, and proof of employment income, overseas income and other assets.
Depending on the lender, you may also need to provide a copy of your credit report, bank statements, national identification and tax return.
See What You Qualify For
Get Immediate Insights on Your Mortgage Eligibility Discover your mortgage eligibility instantly"*" indicates required fields
Add Your Heading Text Here
