For a number of years Australian expats have struggled to obtain mortgages on Australian property because of lending policy changes by some of the major banks but this should not exclude you from being able to get a loan as an expat, whether its for your first property purchase, building on your existing property portfolio or purchasing your forever home.
At Atlas Mortgages we make it our job to speak to 30 Australian Mortgage Lenders and review over 500 Australian Mortgage products to ensure that not only can you that mortgage as a Australian expat but also provide you with a loan that is right for you and your circumstances.
When you work with an Australian expat mortgage specialist we can anticipate the hurdles that non-resident Australian citizens can often experience and make the process of arranging a mortgage as easy and seamless as possible.
Can I Get A Australian Expat Mortgage Whilst Living Overseas?
The simple answer is yes as long as you meet the required lending criteria and talk to the right bank. Often where Australian expats run into problems is that they will approach the branch of their local bank when they are back in Australia on holidays or call up the customer service number not knowing whether that particular bank is accepting Australian expat mortgages or not.
There are a lot of factors that go into whether or not an Australian expat can get a loan from a Australian bank but it is our job to join the dots and match you with a bank that suits you and your circumstances.
Some of these factors include:
- Currency – all depending on what currency you earn your income in will dictate the bank requirements to be able to service a expat mortgage.
- Tier 1 Currency – For those Australian expats earning an income in a Tier One currency (United States Dollars, Euro’s, Singapore Dollars, Great Britain Pounds Sterling, Hong Kong Dollars, New Zealand Dollars, Japanese Yen and Chinese Renminbi) then lenders can accept between 80-100% of your gross income.
- Tier 2 Currency – For those Australian expats earning an income in a Tier Two Currency (United Arab Emirates Dirham, Qatari Riyal, Kuwaiti Dinar, Saudi Arabian Riyal, South African Rand, Thai Baht, Taiwan New Dollar, Vietnamese Dong, Malaysian Ringgit, Indonesian Rupiah, Philippine Peso, South Korean Won) then lenders may only consider 60-80% of your gross income.
- Income Type – Australian banks will consider a number of different income sources when it comes to determining whether you can service a mortgage as a Australian expat. These may include:
- Pay As You Go (PAYG) – this is the most common form of income and generally refers to those Australian expats earning a ordinary wage from an employer. All depending on which currency this income is earned in, the Australian lenders will generally consider 80-100% of employment income earned in a Tier 1 currency and 60-80% for those Australian expats earning employment income in a Tier 2 currency.
- Commissions and Bonuses – whether a Australian lender will consider your bonus or commission is dictated on how long you have been earning these and if they are inline with industry standard.
- Negative Gearing – when assessing your application for a mortgage the lender assumes that you are classified as a non-resident for tax purposes which means that you are not entitled to claim negative gearing and in turn it cannot be used for loan servicing requirements.
- Self Employed – for those Australian expats who are self employed then the income you earn can be accepted as long as you can provide full financial statements for a period defined by the lender along with a letter from your accountant.
- Rental Income – income that you receive from Australian or foreign property can be accepted for assessing suitability however Australian banks will only take into account a certain percentage based on the location of the property.
- Specific Bank internal rules – with the vast amount of regulatory changes the Australian banking sector has undergone in the last couple of years some banks have decided to completely avoid providing mortgages to Australian expats which can sometimes turn off an expat from obtaining a loan. The good news is that there are many others who are happy to lend to Australian expats so you need to ensure that you are talking to the right bank.
Who Is Atlas Mortgages?
Atlas Mortgages is part of the Atlas Wealth Management Group who is the leading provider of Australian expat financial services.
Having being established for over 10 years, Atlas Wealth Management has the experience and the resources to provide tailored financial solutions to the Australian expat community, whether that is in securing a mortgage, reviewing your superannuation, building a investment portfolio or obtaining tax financial advice on all of your financial assets.
What To Expect When Applying for a Australian Expat Mortgage?
When applying for a mortgage as a Australian expat we have a simple 8 Step process from beginning to end.
- Application conditionally approved – This means your application has been approved by the lender but
may still be subject to certain conditions (e.g. valuation)
- Valuations ordered – The bank has requested a valuation of the security property.
- Application formally approved (unconditional) – The bank has approved your application and all conditions have been met.
You are ready to pay your deposit and sign contracts.
- Loan Documentation – Together we review your documentation and sign loan contracts
- Lender receives documents – The lender will review your loan documents and pass them onto
their settlements team
- Lender ready to settle – Your documents have been checked and the bank is now ready to
settle your loan upon instructions from your solicitor
- Settlement booked – Loan to settle on nominated date
- Loan settled – Congratulations! Your loan has settled
Want To Learn More?
Whilst it may seem daunting trying to secure a mortgage as a Australian expat if you work alongside a professional who works in this space everyday, with Australian expats just like you, then the process of securing a loan becomes a lot easier.
We shall link below key articles that we add to our blog that relate to how an Australian expat can get a mortgage.
Australian expat mortgage services are provided by Atlas Mortgages Pty Ltd ABN 93 646 699 863 who is a Authorised Credit Representative 463430 of Mortgage Specialists Pty Ltd, Australian Credit Licence Number 387025.
General Advice Disclaimer
The information provided on this website has been provided as general advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Atlas Wealth Management Authorised Representative before you make any decision regarding any products mentioned in this communication. Whilst all care has been taken in the preparation of this material, no warranty is given in respect of the information provided and accordingly neither Atlas Wealth Management nor its related entities, employees or agents shall be liable on any ground whatsoever with respect to decisions or actions taken as a result of you acting upon such information.