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By Mortgage Street
14 January 2022
Can Expatriates Get a Mortgage in Australia?
If you have a client who is a native Australian currently living outside Australia and who is trying to secure a home loan, it may be a challenging process. However, it is possible. While they may not use the home as their primary residence, they may use it as an investment property, allowing for solid returns. In general, an expat can borrow the same amount as a resident citizen.
Criteria for Expats
If your client is an expat, you must warn them about the criteria most lenders require them to meet when applying for a mortgage. Most likely, your client will need to provide a deposit of at least 10%, plus the costs of stamp duty, any legal fees, mortgage setup costs, and lender’s mortgage insurance. They may also be required to provide three months of bank statements and proof of income, including payslips and foreign tax returns. Lastly, to be approved, they may also need to provide a valid work visa.
Self-Employed Expats
If your client is a self-employed expat, the mortgage application process may be even more challenging. Home loans for self-employed borrowers are considered high-risk by most lenders. In addition, lenders may consider self-employed expats even higher risk because of the difficulty of acquiring repayment from an overseas borrower. However, if your client can provide the proper documentation, they may be able to borrow 80% of the property’s value from a non-traditional lender. The required documentation includes two years of business and personal tax returns, six months of bank statements for their business, and a certified accountant’s letter.
Your expat client may want to own property in Australia because of the excellent investment. However, the application process may be complicated. Not only will some lenders charge higher interest rates, but your client may also experience a delay in the approval process because of unfamiliarity with foreign addresses and income.
If your expat client is applying for a mortgage, Mortgage Street can help. Not only do we make the approval process quick and easy, but we also can approve high-risk mortgages with lower interest rates than traditional lenders.