Many Aussies are living overseas to grab new opportunities and experience a new life out of Australia. However, to live outside many people require loans to buy a home for which they wonder whether it is possible to get a home loan while living outside of Australia and the answer is yes.
People who are living overseas can apply for an expat mortgage in Australia with the help of a mortgage broker in Sydney, even when they are not in the country. Before you consider applying for an expat mortgage, there are a few extra factors that you should know about. Read on to learn more about expat loans.
Buying Properties in Australia from Overseas
Different lenders have different policies for applicants for Australian expat home loans. While some lenders may need you to have an Australian address and citizenship, other lenders may take a more flexible approach. In some cases, you may also need to have a bank account in Australia to make payments for your loan, while some lenders may happily accept foreign currencies.
This means that the benefits you get entirely depend upon the lender and their varying policies. Therefore, it is crucial to do your own research and address your concerns with finance brokers in Parramatta in order to find a loan product that is best suitable for you.
How much Expats can Borrow?
There are various factors that determine the amount you are eligible to borrow as an expat with the help of a mortgage broker in Sydney. These factors include your income, employment status, deposit size, credit history, and lender policies. Most of the factors that make you eligible for applying for an expat mortgage are similar to the application of an Australian resident.
You will need to have a deposit of 20% of the property’s original price. Before you choose the lender, make sure whether they will require the funds to be transferred to an Australian bank account or whether foreign Currency will be accepted by them. If you are self-employed, for example, if you own a business or are a doctor using your own practice, then your lender may require you to pay a larger deposit to approve a home loan. Contact a mortgage broker Sydney to learn about the requirements.
Do Lenders Accept Foreign Currency?
- If you are wondering whether or not you will be able to make repayments in foreign Currency as you live and earn overseas, the answer completely depends on the lender you select as well as the varying policies they may have for expat applicants. There are some foreign currencies that are commonly accepted by lenders of Australia, such as:
- US Dollar (USD)
- Euro (EUR)
- British Pound Sterling (GBP)
- Swiss Franc (CHF)
- Australian Dollar (AUD)
- Canadian Dollar (CAD)
- Japanese Yen (JPY)
- UAE Dirham (AED)
- Swiss Franc (CHF)
- New Zealand Dollar (NZD)
Buying Properties in Australia with a Foreign Spouse
Buying a property with a foreign spouse, being an Aussie yourself can make the home buying process a bit complicated. You may need to pay a surcharge for a foreign buyer’s stamp duty as an extra fee on top of your existing stamp duty. A percentage of the property’s purchase price sets the surcharge. Depending on the state or the territory the rates can vary and range from a low to higher charges.
Considerations Before Applying for an Expat Home Loan
Residency Status
Being an Australian citizen, your residency status can impact your eligibility for certain loan products as well as terms and conditions you are offered by the lender. Some lenders may need your Australian residency status as a factor for qualification for the expat mortgage.
Australian Tax Rates
Instead of evaluating the tax rate of the country you are living in for your home loan application, some lenders may assess the tax rate of Australia. This can potentially affect your borrowing power, especially when the country you are living in has low tax rates.
Power of Attorney
As you are living in another country, a power of attorney in Australia will be required to act on your behalf to progress with the property purchase process. This person will be eligible to handle all your paperwork and documents and represent you during the transaction.
Interest Rates
As an expat, you may need to pay a higher interest rate than an Australian resident. However, you may also be able to find lenders who offer competitive prices with the help of finance brokers in Parramatta.
Foreign Currency Risk
Any fluctuation on the value of your Currency may make it challenging for you to make loan repayments. Your borrowing power can be potentially affected by a currency that is weaker than the Australian Currency.
Some other factors you need to consider are tax implications as well as legal considerations. There is a lot to think about as an expat applicant therefore, it is ideal to contact a mortgage broker Sydney to ensure you are going through an appropriate borrowing process and making correct decisions.
