Australia is a popular country for property investors from all over the world. A common question from overseas investors is whether Non-Residents can get a loan to buy properties in Australia. The answer is “yes, you can”. Non-Residents are Individuals that have a Temporary Visa or are citizens from another country, and are living overseas. Read our guide finance for non-residents.
There are, however additional fees to pay when purchasing a home as a Non-Resident. These fees were introduced in July 2015 as a way for the Australian Government to protect their citizens for increasing house prices from foreign investors. The fees that are applicable for Non-Resident buyers include:
– Foreign Buyer Stamp Duty / Surcharge
– Foreign Investment Review Board Application Fees
These will vary depending on the state that you are buying in and the Purchase price. We can give you an estimate of how much funds you need to proceed to a loan application.
The maximum lending (Loan to Value Ratio) for Non-Residents is 70%. This means you will need more funds to cover all the Government fees plus 30% deposit. We can assist whether you work for a Company or if you have your own business.
Why use a Specialist Non-Resident Mortgage Broker?
Bank policy on home loans for non-residents is a minefield with competing lenders applying vastly different credit policies and home lending criteria. This difference in lending criteria can result in one bank approving the home loan while others will decline the application, reduce the loan amount or require a larger deposit from the borrower.
For example, some lenders will:
– Only lend to expats currently residing in a country that has an Australian Consulate,
– Only lend to Australian citizens abroad that are earning a particular currency,
– Not lend to non-residents at all,
– Apply Australian taxation to expat income for servicing purposes and discount
for currency fluctuations.
This is where Professional Home Loans Brokers can help. We understand the complex non-resident lending policies and requirements for all the Australian banks and non-bank lenders to ensure that your home loan is approved the first time and at the best available interest rate.
There is no cost for our service and absolutely no obligation.