Home loans for Australian expats

Which lenders offer mortgages for Australian expats?

A few Australian lenders offer loans to expat Australians.

• ANZ. One of Australia's Big Four banks, ANZ has a dedicated team offering mortgages to Australians living overseas, enabling them to buy and invest in the Australian property market without needing to travel back home.
• HSBC. This international bank offers expatriate banking services in countries where it also offers personal banking services. HSBC can help with home loan options if you're buying property in the UK, US or Australia.
• loans.com.au. This Australian online lender has an Ex-pat home loan product for Australian and New Zealand citizens.
• UNO. A mortgage broker, UNO can help Australians who live abroad apply for home loans.
• Specialist brokers. There are mortgage brokers who specialist in advising expatriate clients.

Get in touch with a mortgage broker in Australia

Mortgage tips for Australian expats

"An Australian citizen living and working overseas can certainly borrow for a purchase here," says mortgage broker Derek Haas from Haas Associates Loans & Leasing.

While there's a widespread belief that expats will need to obtain approval from the Foreign Investment Review Board (FIRB) before they can buy property in Australia, this is simply not true. This applies to non-Australian buyers.

The interest rates and fees for expat home loans are generally the same as those any Australian living here could access, but some lenders do charge higher interest rates. Specific terms and conditions also apply to these types of loans, so it's important to compare your options before submitting an application.

How foreigners can buy investment properties in Australia

Understanding your options

The amount you can borrow with an expat home loan depends on the lender you select. Expats may have a lower loan-to-value ratio (LVR), meaning they may need a bigger deposit than a local borrower.

Jordan Papadopoulos, founder and former director of Pendo Finance, explains that the LVR available for Aussie expats is generally lower than the amount an Australian citizen living and working in Australian could borrow.

For example, if you have 2 clients looking to purchase the same 3-bedroom home in Melbourne:

• Expat: Maximum LVR could be 60% with lender ABC.
• Citizen: Maximum LVR could be 80% with lender ABC.

"As a result, expats will be required to hold a much higher deposit and/or use equity from other properties owned within Australia," Papadopoulos says.

How do banks treat foreign income?

One of the main issues to consider when you apply for an expat home loan is that you will be earning income in a foreign currency.

Most Australian lenders will only accept a certain percentage of your foreign income, which allows a lender to protect itself against factors such as fluctuating exchange rates.

"PAYG applicants will need to be paid in one of the major currencies, for example, GBP, Euro or USD," Haas says. "The lender here will take 80% of that income – some take 80% of net, some 80% of gross – and use that for servicing the loan."

Some of the commonly accepted currencies for foreign income when applying for an Australian expat home loan include the following:

What other evidence and documentation do banks require from expats?

Just like with a regular home loan, you'll need to provide proof of income to be approved for an expat home loan.

"At a minimum we require 6 months of bank statements, your last 2 payslips and an employment letter and an employment check will also be completed," Papadopoulos says. "Most lenders will no longer accept self-employed income."

Most lenders also require other supporting documentation such as copies of your passport and visa showing that you are allowed to live and work overseas.

What if you're married to a foreign citizen?

If you're married to or in a de facto relationship with a foreign citizen, and only the Australian applicant's earnings are being used to service the loan debt, this won't be an issue. But if both you and your partner's income will be used to pay off the loan, the lender may treat the application differently.

"If you're married you will automatically need to declare the marriage on the lending application. If you are married to a foreign citizen and the lender does not accept their income, this could potentially impact your approval," Papadopoulos says.

• Some lenders will refuse to accept any income from a foreign resident.
• Others will assess you both as Australian citizens or potentially class you both as foreign investors.
• Depending on how they classify your application, the interest rate may be higher.

Written by

Sarah Megginson

Personal finance expert + media spokesperson

With over 20 years of experience in property, finance and investment journalism, Sarah is a trusted expert whose insights regularly appear across television, radio, and print media, including Sunrise, ABC News, and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker, and her expert advice has been shared in the media over 3,500 times since 2023 alone. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards. See full bio

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