Yes, if your client is an Australian citizen receiving an income using foreign currency, they can use the foreign currency to qualify for a mortgage. However, lenders may only consider 60-90% of your client’s foreign income to accommodate the exchange rates. Therefore, they may also need to be earning some money in Australian dollars or have some rental income to have full borrowing power. One exception to this is if your client is a highly skilled professional with stable employment and a good income. If that is the case, they may get the same home loan terms and rate discounts as borrowers earning income in Australian dollars. 

Proving Foreign Income

Lenders will require your client’s financial documentation to be in English or translated by a certified translator. They will need to provide the following:

• A letter from their employer
• A copy of their employment contract
• Two payslips
• Three months of bank statements and proof of salary
• Tax returns for the last year

If your client earns any bonuses, overtime, allowances, commissions, subsidized rent, or other living expenses, they will need to provide a two-year history for lenders to consider this income. 

What if Your Client is Self-Employed?

This is more complicated. Generally, it depends on the country they live in, the currency they are earning, if they are an Australian citizen, and if they have income verification. Providing the following documents can give them the best chance at a loan approval:

• Income proof: 2 years of tax returns and six months of bank statements
• Full credit history

When your client is applying for a home loan using foreign currency, there is a lot to consider. Consulting with the team at Mortgage Street can make the process easier. We understand what foreign currencies are acceptable, how to assess foreign debts, calculate foreign investments, and other factors lenders consider when evaluating a home loan application utilising foreign income.