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Plenty of options are available if you have plans to take your career in an international direction – or if you are already globetrotting and wish to dip your toe into the Australian property market. Importantly, these are available without you having to put up with uncompetitive interest rates or high deposit amounts.
In fact, purchasing an investment property back in Australia while you are overseas can provide attractive tax benefits*, making this prospect even more attractive.
So, how does it work from afar? With an expat mortgage in Australia, you can easily navigate these opportunities. Here’s how.
By getting a verified pre-approval through a qualified expat mortgage broker such as Professional Home Loans, you can be confident that you will have the best chance of finding the right loan for your needs. When you have pre-approval to purchase a property in Australia, it’s time to start looking for the right house.
Verification generally lasts 3-6 months, allowing you plenty of time to find a property while still overseas. Websites like realestate.com.au or domain.com.au are handy tools to narrow down the choices. Then, you can work with family and friends or a buyer’s agent to help you make the final decision. Be careful to do your due diligence, and consider flying back to view the property yourself if you need to use the services of a trusted and professional buyer’s agent.
You don’t need to return to Australia to manage the paperwork and legal documents to purchase a home. Most of the process can be completed and shared via fax, phone, and internet. Settlement usually takes place 30-45 days after signing your contract.
It is often not advised to advertise your status as an expat buyer when you make an offer on a property, as some lenders and agents will use this information to try and take advantage of your situation. This is why it is vital to have the right team to get home loans for Australian expats around you from the very start to ensure you get the best property for the best rate, best price, and least fuss.
Once you have settled on a property, it is officially yours! It’s time to celebrate, but it’s also time to find tenants and maintain it. You can ask trusted family members or friends to help with the maintenance side of it, although our advice is always to choose an investment real estate specialist to take care of it for you.
Yes, obtaining an Australian expat mortgage is possible! While more complex than for residents, lenders exist who specialise in Australian expat home loans. Expect stricter requirements, potentially higher interest rates, and a larger down payment (up to 30%). For a smoother process, consider visas allowing work in Australia and having a solid credit history.
Yes, you can! Lenders offer Australian expat mortgages for non-residents. Expect stricter requirements than for permanent residents. These might include higher interest rates, a larger down payment (up to 30%), and specific visa types that allow Australian employment. Having a solid credit history is beneficial for a smoother process.
The deposit for an Australian expat mortgage is typically higher than for residents, ranging up to 30%. So, you’ll likely need a significant saved amount or equity from another property. Some lenders may offer lower deposits with mortgage insurance, but there will be extra costs.
Expat mortgages offer several advantages for Australians living overseas. Firstly, you can invest in the growing Australian property market and build equity abroad. There’s also the potential for tax benefits when owning an Australian investment property, but it’s essential to consult a tax professional for specific advice. Finally, expat mortgages can help diversify your investment portfolio by adding real estate holdings.
Some lenders may allow you to repay your expat mortgage in the currency you earn your income, reducing the impact of exchange rate fluctuations.
With Temporary Visa Holders in Australia, they will be treated the same as citizens and PR.
For expats, the factors that may come into play are living expenses such as rent. Rent in some countries such as Switzerland and HK are very expensive. If the rent is not covered by the employer, this usually makes it very hard for the client, even they are on strong income.
Credt card limits may also impact their borrowming limit. Most expats also have credit cards with very high limits. This is normal for Middle Eastern countries, Singapore and Hong Kong. The credit card limit can have major impact on a client’s borrowing capacity, as the lenders treat the limit as the balance.
Lenders will to lend to those that have a high likelihood of staying in Australia and stability in income. These include Skilled, Partner and Business/Investment Visa Holders. Our website highlight the common visas that lenders will lend to. In saying that, I do have a few lenders that will lend to those with Graduate Visas or parents that are overseas buying a property for their children to live in while they study here.
The key thing is to know how much deposit they need. As discussed previously, they need extra funds to cover FIRB and Foreign Buyer surcharge. Depending on their visas, the lenders will lend up to 95%. However, in some cases, the maximum loan is at 80%. On top of the fees, they also need 20% deposit as well as funds to cover legal fees and incidentals.
The banks do not typically view any non-citizen/residents more favourably than others. They do however, have certain countries they won’t lend to. Those mainly consist of countries that is politically unstable or currently involved in war. The lenders also have a list of currencies that are acceptable to them. I suppose this is the way that are more favourable to some countries than others, by accepting their currency when applying for a loan.
The main misconception is that people on are not Australian or are non-Residents are treated differently and pay a higher rate. Temporary visa holders, PR and Australian expats get the same rates as local purchases. The ones that will attract higher rates are non-Residents and foreign income self-employed. This category will fall under the specialty lenders and may have to pay additional risk fee and higher interest rates.
Whether you are at the dreaming stage, actively researching, or ready to put an offer on a rural property, Professional Home Loans can help you become an Aussie expat property owner. We have extensive experience working with expats and relationships with lenders who won’t shy away from your situation. Call us for an obligation-free chat at 1300 397 287 or contact us via email.
* Be sure to speak with your accountant to confirm any tax benefits available as an expat buyer. We are unable to provide any taxation or accounting advice at this time.
“We went overseas during settlement and it was not a problem for them, everything went smoothly and I’m writing this from my new home! “
Jack Clancy
“Couldn’t ask for a better job – until next time (although no time soon, moving was awful). “
Accountant, Mick and Vanessa Renton
“Professional Home Loans has provided us with a very professional service, communicating all the available options to us and in the process he has literally saved us $75k that we would have otherwise paid. They certainly go beyond the call of duty. “
Hamilton (Accountant) & Nyari (Doctor) Sydney
“We were able to get a loan at a good rate and avoid paying LMI which saved us several thousand dollars that we can now put towards other things. Very helpful and informative about all aspects of the process, not just the loan, which we really appreciated as it made the whole thing a lot easier for us.”
Craig and Louise (Medical Registrars)
“We assisted Arlyn with a 90% Mortgage with No Lenders Mortgage Insurance payable so she could buy a house and land package Thanks so much. All credits goes back to you as you helped me make all this happen. I couldn’t thank you enough for the job excellently done. “
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