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.
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
In addition to standard supporting documents, you will need the following to verify foreign income
During our assessment we will tailor the rest of the document list based on your unique requirements.
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.
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.
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 eligibility for a higher LVR.
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.
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.
For some lenders you will need to make an appointment to visit the Australian Consulate or Embassy to have your the signing of your 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.