Complexities like foreign income, home addresses, and documentation can make applying for a home loan difficult while outside Australia, especially with the persistent lack of support from many lenders. That is why seeking a trustworthy lender to meet your needs is important.
Instead of heading to the big banks, utilise the convenience of mortgage brokers to explore a range of Australian expat home loans to make your application process as simple and pain-free as possible.
Australian expats should be provided the same personalised home loan experience as any other Australian citizen on the market. Get a Better Rate strives to put you first, regardless of your location. With close to a decade of experience in providing Australians with the personalised expert care they deserve when it comes to home loans, it is clear why even non-resident Australian citizens would reach out to us.
Our extensive panel of lenders available at Get a Better Rate do not just include Australian banks. We also incorporate lenders that provide reasonable home loans for any Australian citizen living overseas. This means you can confidently start your journey towards a new home loan, no matter how far from home you are.
Get a Better Rate`s founder, Peter Hammond has over 20 years of experience working in some of Australia`s leading financial service brands. He has brought this diverse expertise to the company, including building the foundation of our personalised approach to Australian expat mortgages.
This kind of specialised care is required for the complexity of Aussie expat home loans. Those looking to apply for a home loan while overseas will likely face several challenges from living and earning in a country outside of Australia. These challenges can range from converting foreign income to Australian dollars and, thus, what kind of deposit is feasible for a buyer to how lenders can verify income in a foreign account.
When you work with an Australian expat mortgage broker like Get a Better Rate, you take the stress of overcoming these challenges off your shoulders. Instead, our lenders will guide you through the entire home loan process from start to finish, ensuring you are getting the best deal possible. There is no need to worry about the complexities of expat home loans when you have a mortgage broker working hard to make it simple for you.
With so many lenders, choosing which Australian banks will work best for your home loan needs can be hard. That is why mortgage brokers are beneficial for those looking to navigate the lengthy and occasionally difficult process while overseas.
Here at Get a Better Rate, we have partnered with a wide range of lenders throughout our many years of service. That means we have plenty of variety to analyse to determine which lender best matches your personal financial needs. So, trust that we will always put our customers first as we carefully look through all of our options to find the one that puts you ahead of the Australian property market.
Our client-based approach extends beyond choosing a lender for you. Get a Better Rate provides personalised care from the moment you contact us up until you have settled on your new property purchase. No request is too big or small for our expert brokers, so we emphasise seamless communication and support as the keystones of our business.
You will never feel like you are facing a home loan challenge by yourself when Get a Better Rate is in your corner. Allow us to support and guide you through the mortgage process, whether you are a first-time home buyer looking to resettle in Australia or a hardened mortgage explorer wanting to expand your investment purposes.
Due to the fact that expats are both living and working overseas, the Australian mortgage they may prefer or have experience with may not be available anymore. This is a common story as some Australian lenders have policies against lending to overseas parties, or may have higher penalties to compensate for the additional work required with expats.
Fortunately, there are still home loans available for Australian expats for them to reach the property goals they have dreamed of. Whether this is in the form of cash back mortgage broker services, or refinancing directly with a lender.
The restrictions around expat home loans have lessened over the past several years, allowing expats to enjoy the following loan features:
Variable, fixed, and split-rate loans are all available.
Loan terms can extend up to 30 years, and the average mortgage age limit for opening an expat loan is not altered.
You pay the same interest rates as residents using the same loan product.
Borrowing up to 90% of the property value if you are a citizen living outside the country.
Borrowing up to 80% of the property value if you are self-employed while living overseas, which can be altered on a case-by-case basis.
There are no early repayment penalties, but you will likely pay an additional discharge fee for expat loans once the mortgage is fully paid off.
Interest-only repayment loans are available for those who prefer minimal monthly repayments but maximum cash flow flexibility.
With these benefits come some industry-wide restrictions; however, that should be known beforehand. The following points should help inform you on your journey alongside a mortgage broker:
Lenders tend to have specific business criteria that expats must meet for loan approval. Always check you meet a lender's eligibility requirements before applying for a loan, as exemptions are rarely made.
Most lenders do not offer loans in foreign currencies, meaning you will likely need to take out a loan using only Australian dollars.
Australian banks that operate overseas cannot provide residential loan services to individual customers. Only corporate clients are granted this opportunity.
Australian expats can enjoy the opportunity to refinance their existing home loan with a new lender if they wish. There are just some stipulations to keep in mind ahead of loan application, such as:
Most lenders will prefer Australian citizen expats over foreign nationals.
You must have a valid visa to live and work in the country where you are currently residing.
A good credit score must be maintained.
Evidence of a steady income for at least the last 2 years for most lenders, although some will consider a lesser time period with reasonable justification.
Lenders require minimum equity in the property being refinanced, resulting in most lenders offering up to 60-80% of the property value.
Always check with your lender ahead of time to determine if any restrictions may prevent refinancing opportunities. However, having mortgage brokers on the case can make this determination process far easier and quicker, securing you a refinancing loan at the best rate possible with minimum fuss.
The process of acquiring a loan for an investment property does not typically diverge from the requirements of a residential loan for expats. Regardless, you can always check with your mortgage broker and their expertise in the current Australian market if there are any requirements your lender may impose.
You can also release equity from your existing Australian properties to help you borrow more for investment purposes, even as an expat. This means your investment portfolio can continue to be built even while not residing in Australia.
Now that we know all of the features and regulations of expat home loan products, it is time to begin delving into how to secure this unique product with Get a Better Rate!
We have a proven process that provides tailored solutions for all your home loan needs as an Australian expat. We match you to the loan product that will help build your new future. The process itself is simple, as our mortgage brokers walk you through each step and support you until the very end of your loan settlement.
We offer an initial consultation to get you started on your home loan journey and connect you with your main mortgage broker. While usually done in person within Sydney CBD , we can also conduct things online to communicate closely with you and keep you in touch while overseas.
During this consultation, we will discuss what you are looking for out of a loan, your overall goals, and your personal and financial circumstances that can affect your potential loan approvals. It is best to prepare all personal information and financial details beforehand to send to your broker. That way, they can begin organising the documentation needed for a loan application from the beginning.
During this initial meeting and its follow-ups, we will begin collecting a portfolio of potential lenders that suit your goals while still providing you with the best deal possible. These recommendations will help you narrow down your choices to the final choice of expat home loans.
Once you have decided on a loan product, you enter the pre-approval stage, also known as conditional approval.
Here, your chosen lender has agreed to lend money to you but has yet to reach final approval. This allows you to indicate your desire to negotiate for a specific piece of Australian property and keep an eye out for a better opportunity if it arises.
If you have been given the green light from a lender to begin the application process, it is time to begin submitting all of the documents your broker has been collecting. This includes both personal and financial documentation to indicate your ability to manage your proposed loan and continue to thrive.
The typical documents required for a home loan application will also be required for expat loans.
This includes:
Proof of identity: a passport, driver's licence, birth or citizen certificate, and/or Medicare card.
Indication of income: payslips, tax return, ATO notice of assessment, and/or bank account statements.
Financial position evidence: Assets, outstanding debts, breakdown of living expenses.
However, Australian expats also require the following documents, or alters to previously required documents, to apply for a mortgage due to their position living overseas:
Proof of valid overseas work and/or living visa.
Current employment contract and employer details.
Australian passport only, no foreign examples.
The previous 3 months' payslips and/or contract payments.
The previous 3 months' salary or contract credits as seen in bank statements.
Your mortgage broker will be available to help you throughout the application process, offering expert experience and advice to ensure everything is ready for that final moment of application. That way, you will never be alone or unsure of how to negotiate with the lender of your choice.
After your loan application has been approved, you can secure your new property and pay the deposit. This stage also requires you to sign a contract with your lender, the details of which will be explained by your broker if necessary.
Once documents have been submitted, a home loan usually takes 1-5 business days to be approved. Expat loan approvals may be affected by time differences between your current country of residence and Australia.
After approval has gone through, you can look forward to the settlement of your property. This means the purchase has gone through, and you are now the owner. Your broker will set a settlement date with your lender and inform you immediately once the process has been completed. This stage takes around 4-6 weeks from application, but your broker will always be with you for support and guidance.
Now, all that is left to do is enjoy your new property!
Although the home loan process for Australian expats has been greatly simplified in this article, it is important to recognise that there are still various challenges that can arise throughout the duration. These challenges can alter the usual expectations of a loan application and occasionally make the task more difficult, especially when in-person communication is not available.
That is why it is so beneficial to have a mortgage broker on your side striving to streamline the process and help you overcome the following process differences.
Generally, you are only required to pay income tax on Australian-sourced income. This extends to expats interested in a mortgage, as your lender generally uses Australian tax rates.
However, some lenders may use rates related to your current country of residence. This is beneficial if you are in a country with low tax rates, but detrimental if the opposite is true.
It is best to always check the tax details with your lender before submitting an application to ensure you are getting the best deal possible.
There are some differences in legal considerations when it comes to applying for a mortgage as an expat. Some of the more notable examples include:
Those applying for a loan with a foreign spouse can cause your stamp duty costs to double as the surcharge is applied to half of the property's value. This can be circumvented by purchasing the property solely under the name of the Australian partner.
If you are self-employed while living overseas, you will require full financial documentation of your work in accordance with a period determined by your lender. Typically, you will also be required to accompany these documents with a letter of proof from your accountant.
While it may seem like it is best at first glance to start your mortgage application process once you are back in Australia, do not allow this perception to hold you back. Get a Better Rate will make the entire process of achieving an expat home loan seem effortless, from the first consultation to the final settlement.
Our expansive panel of lenders and team of expert brokers are just the tip of the iceberg of the benefits our company offers. If you are ready to take that first step towards acquiring your next property, contact Get a Better Rate today for your initial free consultation.
Yes, you can secure an Australian mortgage for yourself while you live abroad. However, expat loans may come with specific criteria or restrictions from a lender, so be sure to always check your options ahead of time.
Expats are typically expected to pay at least a 10% deposit for an Australian property. Additional costs, such as stamp duty, Lenders Mortgage Insurance (LMI), and conveyancing fees, will usually be required.
Your broker can determine what deposit will be required for your loan of choice.
Living overseas makes it difficult to organise anything in Australia, let alone the complex process required for a loan application. Using a mortgage broker takes the stress out of this experience and leaves you with the time and energy to focus on your daily life.
If you are an expat and want to put your well-being first and entrust the process to a professional, it is worth using an Australian mortgage broker.
