Refinancing an Australian Mortgage
Exfin is typically able to arrange residential home loan finance for Australian expats, but refinancing an existing mortgage when individuals are non-resident can be a more difficult process, with fewer lenders providing access to funds, and more restrictions sometimes applicable.
More Competitive Interest Rates
Reviewing whether refinancing is available can be very advantageous. Most Australian banks compete vigorously only on "new loans" and there is usually a very significant gap between the interest rates payable on new and existing loans. Additionally, while banks may offer lower interest rates to new customers who have significant equity in their homes - these discounts are not passed onto existing customers.
Many expatriates have mortgages which are "ancient" in nature, and these can be markedly uncompetitive in terms of interest rates and terms and conditions - particularly in a sharply rising interest rate environment.
Remember, in most situations no cost attaches to having a mortgage broker review your current arrangements and suggest alternatives. The following represents a snapshot of the market in 2025, and is provided as general guidance only.
Eligibility and Borrowing Limits
Australian lenders will review your eligibility in the normal way, calculating your servicing ability by looking in detail at your income and costs, but there are some restrictions on maximum loan to valuation ratios (LVR) which are driven by the currency in which you earn your income. Please note, however, that Australian banks will not currently lend to self-employed non-residents
| Gold Tier Currencies | Silver Tier Currencies |
|---|---|
| Maximum 90% LVR | Maximum 80% LVR |
| British Pounds (GBP) Euro (EUR) Hong Kong Dollars (HKD) New Zealand Dollars (NZD) Singapore Dollars (SGD) United States Dollars (USD) Canadian Dollars (CAD) | Japanese Yen (JPY) Indian Rupee (INR) Indonesian Rupiah (IDR) Vietnamese Dong (VND) Chinese Renminbi (CNY) United Arab Emirates Dirham (AED) |
Current Indicative Mortgage Rates
At its latest meeting on May 19, 2025 the RBA reduced the cash rate by 0.25% to 4.10% - saying inflation is expected to remain in the target band. All the big four banks have quickly passed on the rate cuts and the rates below represent a flow through of the cash rate reduction and should be representative of rates available to expats as at June 2025 going forward.
| Type of Mortgage | Interest Rate |
|---|---|
| Standard Variable Rate - Owner Occupied (P & I ) | From 5.64% p.a. |
| Standard Variable Rate - Investment (P & I) | From 5.84% p.a. |
| Fixed Rate Home Loan - Investment (P & I) - 5 years | From 5.99% p.a. |
Current analysis suggests that there may be little scope for rates to fall during the latter course of 2025, given the level of global uncertainty stemming from the Trump presidency - uncertainty tends to result in regulators "sitting on their hands" until clear trends are evident.
If you would like to make an inquiry regarding an Australian mortgage please complete the Inquiry form below providing details and you will be contacted promptly.
