Australian Expat and Non-Resident Loans
If you’re an Aussie living overseas, and you want to buy property here, you can apply for an Australian Expat or Non-resident Loan. It’s a bit different from the process of applying for a standard home loan, when you reside here.
At Simplify Finance, we’re specialists in securing property investment lending, including Australian expat home loans and non-resident loans. While we’re based in Sydney, we help people purchase property all over Australia.
A Range of Lending Options
Not all lenders will allow expats to borrow. Some banks do not allow people living overseas to qualify for discounted home loans and therefore may cost more.
You will need to ensure the currency in which you receive your income is accepted by your selected lender. Preferably, you will be earning PAYG income as most lenders won’t accept self-employed income if you live overseas.
You will sometimes need a POA - Power of Attorney in Australia.
Most of usual loan structures are available for non-residents. For example, a split loan with both a fixed interest rate and variable rate components, a standard variable rate home loan, construction loans and lines of credit. Interest rates, fees and charges are generally the same as for Australians residing here.
What you need to know
Foreign debt you may have, foreign tax rates and fluctuating interest rates can all affect your borrowing power because all Australian lenders apply an “Exchange Rate Movement Risk” to overseas income.
That is why it’s a great idea to seek the help of a professional mortgage broker. A broker will streamline the loan application process and a broker can steer you through the purchase process and liaise with agents and solicitors too if needed. This can be hugely beneficial if you’re living in a different time-zone.
It’s important to keep in mind that investment policy changes on a regular basis including which currencies lenders will accept for the purposes of expats and foreign investors wanting to purchase property in Australia.