We make it easy for qualifying Aussie Expats to arrange finance with Australian banks to purchase their home or investment property. Our services include using your foreign income to evaluate your borrowing capacity, recommending the most appropriate lender, and managing the entire process for you, including all Australian stakeholders such as your solicitor, real estate agent, and buyers agent.
Can I borrow while I am an Australian expat?
Yes. If you are an Australian Citizen living and working overseas you are able to borrow from Australian banks to purchase property in Australia.
We have a strong community of Aussie Expat clients based in Hong Kong, Singapore, Malaysia, China, US, UK, EU, and Dubai.
How do banks treat foreign income?
A bank will first convert your foreign income to AUD using their retail exchange rates or a well known website such as www.xe.com.
This income will be discounted before being used as servicing income. This is typically 20%. Some banks apply 10% and others up to 40%. This is in addition to any standard discounting that happens for variable income such as overtime, commissions, or bonus income.
What supporting documents do I need to evidence foreign income?
In addition to standard supporting documents, you will need the following to verify foreign income
- Last 3 pay slips + last 3 months bank statements showing salary credits
- Employment contract or letter from your employer on company letterhead stating position, start date, and remuneration
- Visa eligibility to work in the country of your employment
During our assessment we will tailor the rest of the document list based on your unique requirements.
What employers do banks prefer?
Banks that lend to expats prefer to lend to clients working with multinationals or large local companies with an established reputation.
If the company you work for is a smaller business, a bank can still lend to you. However, your income verification documents must precisely meet the bank’s requirements and you may be asked more questions such as if the company has a website etc.
What currencies do banks prefer?
Banks typically prefer mature, highly traded currencies such as USD, GPB, EUR, HKD, JPY, SGD and NZD.
Other currencies such as CNY, KRW, MYR, AED can be considered on a case by case basis if your employer is strong, and your income documents meet the bank’s requirements.
What is the maximum loan to value ratio (LVR) for aussie expats?
For most banks, the typical maximum LVR for Aussie Expats is 70%. However, there are some lenders that will allow you to borrow at 80% LVR if you meet their requirements. Please contact us, and we will assess if you’re eligible for a higher LVR.
How is my borrowing capacity calculated as an expat?
As explained, your income is converted to AUD and discounted by 20%. Your expenses are also then converted to AUD but taken at 100%.
After these adjustments, your borrowing capacity is calculated the same way as if you were an Australian based borrower.
Australian tax rates are applied to your serviceability assessment, which means your calculated borrowing capacity may be lower than what you can actually afford. This is intentional by the bank to keep your scenario conservative.
Do I pay the same rate as other borrowers?
Yes, for most banks you will pay the same interest rate as if you were living and working in Australia. Some banks will apply a loading to their interest rate for Australian Expats. We will let you know if this applies in your scenario depending on the bank you pick.
Are there any special processes for australian expats?
For some lenders, you will need to make an appointment to visit the Australian Consulate or Embassy to have your signing of the loan documents witnessed by a Notary Public. A cost is involved to do this.
Other lenders may instead require you to organise a Power of Attorney to sign documents on your behalf, although this is less common.
What if my spouse is not australian? can they be a co-borrower?
If your spouse is not an Australian citizen and also lives with you overseas, most lenders do not allow them to be a co-borrower.
This will change if you were to return to Australia with your spouse, and he or she starts earning AUD.