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Australian Mortgages

Australian Mortgages and Home Loans

Exfin provides access to home loan finance for Australian expats, new migrants to Australia, temporary residents and offshore investors. For Australians expatriates and offshore investors 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.

Some special issues do apply in relation to these sorts of loans and, while a number of lenders have now adopted a more flexible approach, it is recommended that you utilize a mortgage broker who is experienced in dealing with expatriate/offshore loans. Processes differ between various lenders; a number of major lenders will not deal with expatriates and you can waste a considerable amount of time pursuing a loan with a provider who is not a good match for your circumstances.

In most situations, no cost attaches to the use of a mortgage broker and, in our case, you have access to almost all mortgages in the Australian market.

Note that specific restrictions apply in relation to the refinancing of an existing Australian mortgage while non-resident and we address these in a page devoted to expatriate mortgage refinancing.

How much can you Borrow?

The table below provides a short summary of the maximum lending rates available to four Categories of Borrowers - they reflect significant changes made to lending criteria which came into effect in May 2016 and subsequent market changes into 2020. We also suggest that expatriates and overseas investors seek tax advice about the appropriate level of gearing prior to concluding your purchase, if you intend to rent the property.

Four Categories of Borrower Maximum Borrowing Capacity
Non-resident Australian citizens and permanent residents ("Expatriates") 70 - 90% (1)
New Zealand citizens resident in Australia 70 - 90%
Foreign citizens living overseas ("Overseas Investors") 0 - 75% (2)
Temporary residents living in Australia 0 - 80%

Commentary

  1. We are typically able to arrange domestic Australian mortgages for most Australian expatriates (citizens and PR's) up to 80% of the property valuation, and up to 90% in the right circumstances - but access to finance can depend on your currency of remuneration and location. The Royal Commission into banking has also resulted in a much tighter compliance regime for lending and one very recent casualty has been lending for Australian expatriates who are self-employed overseas; Australian banks will not currently lend to self-employed non-residents
     
  2. Following changes in 2016 it has been difficult or impossible to arrange domestic finance for overseas investors without Australian citizenship or permanent residency.

Indicative Mortgage Rates

Below is a schedule of interest rates which are intended to be indicative of current interest rates applying to Australian home loans which involve principal and interest (P&I) repayment.

In practice, it may be possible to access rates lower than the standard variable rates quoted below - with borrowers able to access introductory first year or "honeymoon" interest rates, or participate in "professional package"offers - if money is being borrowed to purchase a property for your own occupation. Professional packages can reduce interest rates significantly, depending on the size of the loan, and offer other account benefits in return for the payment of an annual account fee.

Note that slightly higher rates will apply for investor loans and that it has become more difficult to source interest only loans. Also, interest rates and loan conditions will depend on your location and circumstances - with not all lenders covering all countries and all types of borrower - hence why the rates below are indicative only.

Whether these packages, and other offers, suit your circumstances needs to be the subject of discussions with the bank or broker.

Type of Mortgage Interest Rate
Standard Variable Rate - Owner Occupied (P & I ) From 2.59% p.a.
Standard Variable Rate - Investment (P & I) From 2.99% p.a.
Interest Only - Investment From 3.29% p.a.
Fixed Rate Home Loan - Investment (P&I)  
1 year 2.59% p.a.
2 Years 2.49% p.a.
3 Years 2.49% p.a.
4 Years 2.99% p.a.
5 Years 2.99% p.a.

Please complete the Inquiry form below for a response from our mortgage broker which carries no obligation or commitment on your behalf.