Australian Mortgages for Expatriates and Overseas Investors
Australian Mortgages and Home Loans
Both Australian expatriates, and overseas investors, have a range of options available when it comes to seeking a mortgage or home loan for the purchase of a property in Australia. These include applying for either a Foreign Currency Loan (FCL) or an Australian (AUD) mortgage.
If your preference is an Australian dollar mortgage then there is no reason why you should not make a direct application for a mortgage in the Australian market while you are overseas. Australia has a very competitive market with a comprehensive range of products, and you can start the process by completing the Inquiry link at the bottom of this page.
Exfin provides access to home loan finance for Australian expats, new migrants to Australia and offshore investors. For Australians expatriates who wish to purchase an investment property while overseas, access is also available to complete professional advice on the selection, management and financing of property.
You should be aware however that some special issues do apply with respect to expatriate applications. For example, until relatively recently it was difficult to arrange loans where the loan to valuation ratio (ie. the value of the mortgage compared to the house value) exceeded 80%. However, a number of lenders are now taking a more flexible approach, with loans currently available to expatriates of up to 90% of the property's valuation, and somewhat less for overseas investors depending on the circumstances. It is important that you use a broker who is familiar with the particular issues arising with expatriate/offshore investor mortgages.
Borrowing Levels
Below is a general summary of the maximum lending rates available to Australian expatriates, foreign investors and temporary residents. Note that loans exceeding a loan to valuation ratio (LVR) of 80% will attract Lenders Mortgage Insurance (LMI) at a level which is dependent on the size of your deposit, the property and your bank. It can be a significant amount, although lenders will usually allow it to be capitalised and added to your mortgage for repayment purposes. We always suggest that expatriates and overseas investors seek tax advice about the appropriate level of gearing prior to concluding your purchase, if you are intending to rent the property.
Type of Borrower |
Maximum Loan Available |
|---|---|
| Australian citizen or PR living and working overseas. |
90% + LMI
|
| Temporary Residents living and working in Australia. (Note FIRB restrictions on property purchases) |
90% + LMI
|
| Foreign Nationals living and working overseas. (Note FIRB restrictions on property purchases) |
80%
|
Indicative Mortgage Rates
Below is a schedule of interest rates which are intended to be indicative of the interest rates currently applying to Australian home loans. In practice, lower rates will almost always be available - with borrowers able to access introductory first year or "honeymoon" interest rates, or participate in "professional package" offers. Professional packages will typically reduce interest rates by 0.5% per annum and offer other account benefits in return for the payment of an annual account fee.
Whether these packages, and other offers, suit your circumstances needs to be the subject of discussions with the bank or broker. Our broker has access to almost all home loan providers in Australia and their services are free, with the lender paying these costs.
Type of Mortgage |
Interest Rate |
|---|---|
| Standard Variable Rate Home Loan |
6.99%pa
|
|
Fixed Rate Home Loan 1 year |
6.89% pa |
IMPORTANT: The material contained in this website and other associated communications is only intended as general, background information and must not be relied upon. No warranty is provided in relation to any material or to the services that may be contracted through exfin.com. It is recommended that individuals seek the advice of qualified professionals before taking any action.
