Home and Investment Property Loans for Australian Expats Living Overseas

Are you an Australian citizen or permanent resident living and working overseas and thinking about buying property back home? Whether you're investing or preparing for your return, securing a home loan as an expat is absolutely possible—with the right information and lender.

This guide explains how expat home loans work, what lenders look for, and how to successfully apply for a mortgage from abroad.

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🏠 How Much Can I Borrow While Working Overseas?

Your borrowing power as an expat depends on your foreign income, which lenders convert into Australian Dollars (AUD). Different banks use different income policies, generally considering 60%–100% of your AUD-equivalent income.

✅ What You Should Know:

• Most lenders do not accept self-employed foreign income, but a few do.

• Rental income is usually assessed at 80% of the gross rental amount.

• Your currency matters—some are more readily accepted by lenders.

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💡 Key Loan Features for Australian Expats

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🌍 Documents Required When Using Foreign Income

To prove your ability to live and earn overseas, you'll need to provide documentation based on your residency:

If You Do Not Hold Dual Citizenship:

• Australian passport

• Valid work visa or permit (minimum 4 months remaining)

If You Do Hold Dual Citizenship:

• Australian passport

• Foreign passport of the country you’re working in

📌 Translations: Any documents in another language must be translated by a NAATI-accredited translator.

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🛠️ How to Buy Property in Australia While Living Overseas

1. Loan Application Process

Lenders will assess your:

• Income (converted to AUD)

• Assets and debts

• Overseas living expenses

• Loan servicing capacity

2. Foreign Expenses Count

Expenses like rent, school fees, insurance, credit cards, and loans overseas are factored into your serviceability. Be ready to show accurate figures.

3. Deposit Requirements for Expats

• Standard deposits range from 20%–30%.

• Some lenders may allow 10%, but higher deposits open more options.

• Deposit can be cash or equity from another Australian property.

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🏡 Planning to Live in the Property Later?

Step 1: Buy as an Investment Property (for now)

While you're living overseas, lenders will treat the loan as an investment property loan. Your ability to service the loan is based on your foreign income.

Some banks offer flexibility if you can prove a return date or short-term lease.

Step 2: Convert to Owner-Occupied Loan Upon Return

Once you move back and live in the property, you can request the loan to be reclassified:

Accepted proof of residency includes:

• Driver’s license with your new address

• Utility bills (electricity, phone, etc.)

This often unlocks lower interest rates and better terms.

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👩‍❤️‍👨 Buying Property with a Non-Citizen Spouse

If your partner isn't an Australian citizen or permanent resident, there are a few legal and tax implications to consider.

FIRB Approval

• Required if your partner is considered a foreign person under FIRB rules.

State-Based Surcharges

• Vary by state—some charge 7–8% stamp duty surcharge on your partner’s share of the property.

Tip: Check both federal FIRB rules and your state’s foreign buyer policies to avoid hidden costs.

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✅ Key Takeaways for Australian Expats

• Buying or refinancing property while overseas is possible and common.

• Choose a lender familiar with expat home loans.

• Understand how your income, expenses, and location affect your borrowing.

• Be aware of legal steps when buying with a non-citizen partner.

• Talk to a broker or lender who specialises in expat mortgages.

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👉 Ready to explore your loan options?

Speak with a mortgage broker who understands the needs of Aussie expats. Get tailored advice and a plan that suits your goals—even from overseas.

 

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Questions?

We can talk using Whatsapp, Team meets or Zoom

Simon Bowler

Dip, FSMB & Fin
Mortgage Choice in Northcote