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.
More Competitive Interest Rates
Reviewing whether refinancing is available can be very advantageous. Most banks compete vigorously only on "new loans" and there is a significant gap between 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 "loan to value (LVR) discounts are not passed onto existing customers.
Many expatriates have mortgages which are often "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 - and refinancing can be very attractive.
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 at the mid 2022, 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)
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)
Indicative Mortgage Rates
Interest rates will depend upon the loan option and type of loan process, but below the table below contains some current, indicative interest rates as at July 21, 2022. As predicted, the RBA has just announced (August 2, 2022) a further 0.5% increase in the cash rate and this will flow into mortgage rates over the coming weeks and we will update the figures below accordingly.
|Type of Mortgage||Interest Rate|
|Standard Variable Rate - Owner Occupied (P & I )||From 3.29% p.a.|
|Standard Variable Rate - Investment (P & I)||From 3.59% p.a.|
|Fixed Rate Home Loan - Investment (P & I) - 5 years||From 5.09% p.a.|
If you would like to make an inquiry regarding an Australian mortgage, please complete the Inquiry form below and we will respond promptly.