Lending For Expats - Complex or Straightforward?

Nigel Gohl
Senior Mortgage Consultant

Are you an Expat wanting to assess your lending options?

Lending For Expats - Complex or Straightforward?

I work with many Expat clients and often when an Aussie has moved overseas to work they think one of two things:


i)                   As I'll now be working overseas and earning far more income than I was in Australia, my property journey will continue and I’ll be able to buy more property as a result of my increased income OR

ii)                  As I will be working overseas I will need to put my property journey on hold until I return to Australia


The answer is somewhere in the middle.


Expat lending has tightened up over the last few years due to an increase in cases of fraud (such as fraudulent overseas pay slips being used) and the vast majority of banks have stopped lending to people that are not Australian citizens or permanent residents. However, Expat lending is still very possible and there are a number of options available to you.


The main point to note with Expat lending is while all of the banks will say that they do accept lending to Expats, as always, the “devil is in the detail”.


For example:

  • What percentage of overseas income does the bank accept – do they shade it to 80% after it has been converted to AUD or more?
  • What happens if you work overseas but are paid in Australian dollars – does the bank shade that income?
  • If you do not pay any tax in the country you work, does the bank still tax your income?
  • What LVR will the bank lend up to? Is it 80% or is it less? Is it only 60%?
  • As an Expat can you be self-employed or do you have to be earning PAYG income?
  • What about your expenses in the country you are living in – does the bank want to understand all of your overseas liabilities and do they need evidence of the rent you pay, or your overseas mortgage?
  • Can overseas bonuses and commissions be included as a part of your income, or is it just base salary?
  • Does the bank only accept certain overseas currencies? Is the currency you're earning acceptable to the bank? Does that affect LVR?
  • Can you obtain cash out as an Expat?
  • Can you obtain a construction loan as an Expat if you want to build a property back in Australia?
  • Do mortgage documents need to be signed at an Australian Embassy and who can witness the signing of mortgage documents when you're overseas?


As you can see, there are a large range of complexities around Expat lending - but thankfully, we know all of these answers and more!


Once we have a full understanding of your income as well as your assets and liabilities, we're able to structure a loan that matches your goals to purchase a property back in Australia or to refinance. This can be for investment, or for a future home you plan to move into at a later date.


While most Expats that we've organised finance for live in either Asia or the Middle East, you’ll be happy to know that we've also assisted Expats that have lived in at least 20 different countries around the world.


Every separate Expat loan has different challenges, but we're well equipped to handle them all - And don’t forget that if you refinance an Expat loan with us, you’ll go into the draw to win a trip to Italy in 2024.


I look forward to helping you!!

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