Australian Expat Home Loans: Getting a Home Loan When Living Overseas

Building a career and reaching for your dreams may require working overseas and leaving Australia. However, even while building for the future, the typical Aussie would want to go back and call Australia their home.

Here is where getting a home loan when living overseas comes in the picture. It is possible to secure a mortgage loan, even for Aussie expats while they are working and living overseas. However, the question lies on whether it is an easy feat and if the rates for such mortgage applications are as competitive as getting a regular home loan.

Securing Expat Home Loans Outside Australia

Several banks and non-bank lenders offer expat mortgage loans to Aussies living overseas. Although there are certain terms and conditions that are related to such applications, this is good news for Aussies who dream of owning a property in their homeland.

5 Top Things to Remember When Applying for an Aussie Expat Home Loan in Australia?

Every Australian citizen living in Australia or overseas is entitled to apply for a mortgage to secure and purchase an Australian property.

1. Expats do not need to obtain approval from the Foreign Investment Review Board

This belief can sometimes “scare away” Aussies who are looking into investing in their own personal property in Australia. As long as you are a resident, you can take out a loan and purchase a land and a property, all while working and living overseas.

2. Higher interest rates apply with expat mortgage loans

Contrary to popular belief, interest rates on loans applied to purchase a home while working and living overseas are just about the same as regular home loans. Although some lenders charge higher than others, Intellichoice can help you secure a loan with the best possible rate and conditions suitable with your budget. Prior to applying, you should weigh your options and compare what other banks and lenders offer.

3. Loan amounts have smaller LVR for expat mortgages

The amount you can borrow is not based on your current location. It all depends on several other factors such as the current exchange rates in the market, the foreign debt you may have incurred, foreign tax rates as well as other factors that can affect your capacity to repay a mortgage.

However, if you will compare the LVR offered to an Aussie living overseas vs an Aussie in Australia on the same property, the LVR of the Aussie residing in Australia is relatively higher by 15%-20%. This will require an expat to save a larger deposit or to provide equity from the other investment properties they own in Australia.

Your foreign income, foreign currency, and its buying power can also contribute with your loan approval as well as the terms and conditions your mortgage may require. A negative gearing on the current economy you are working for can also contribute to the amount you can borrow.

4. Expats are required to return to Australia to process documentation

This is true but is not required. If you are approved for a mortgage and will be required to process documents, you may or may not return to Australia to do so. If you are unable to return to process your application, you simply need to have your documents couriered overseas witnessed by the Australian Consulate or Embassy. A Registered and Enduring Power of Attorney can also help you save a trip back to Australia.

5. Working with a mortgage broker saves you time and resources

In applying for an Australian Expat Mortgage, it would be essential to work with a mortgage broker to process your application. Maintaining a good communication with your broker also ensures that your application is on track and working towards your intended purchase.

Where Can an Aussie Expat Secure a Mortgage?

It would be ideal to invest in a home in Australia while living and working overseas. With a wide array of options available and logistic issues, one might find it challenging to secure a mortgage while outside the country.

Talk to an Intellichoice mortgage broker today for your mortgage needs. We can connect you to several banks and non-conforming lenders that can provide a mortgage for you.

Intellichoice’s advantage over a direct application with a bank or lender is the level of expertise and financial knowledge we have established with our clients for more than 16 years. Expect easy communication and speedy service with our experienced loan specialists.