Australian Expat Home Loans
For expats looking to buy property in Australia, the process of securing a home loan can seem a little daunting. However, there are a variety of Australian expat home loans available, which are specifically designed to help expatriates purchase property back home while living abroad.
The process might be a little different to your standard first homebuyer loan, owner-occupied mortgage or investment loan for Australian residents, but our knowledgeable brokers are highly experienced in helping expats get approval for a home loan here in Australia.
How do Australian expat home loans work?
In Australia, an expat applying for a home loan will typically need enough funds for a 20% deposit on the property, as well as additional funds for the accompanying purchasing costs.
To get a rough idea, if you were buying a $700,000 house in NSW and you had a $150,000 deposit (about 21.5% of the property value), you could expect to pay the following expenses as part of your property purchase:
- Stamp duty (currently $26,835 for a property of this price in NSW)
- Legal fees (approximately $2500)
- Bank fees (approximately $500)
Please note this is just an example, and we recommend using a loan calculator to gain a clearer understanding of the costs associated with your specific circumstances.
However, if you already own property in Australia, then you’ll be able to use the equity on that property as a deposit for this new property. Another option is that if your parents own property in Australia, then you may be eligible for a guarantor home loan, which makes things easier.
The importance of choosing the right Australian expat mortgage lender
The issue that many Australian expats run into when applying for a mortgage is that they don’t meet the criteria required for a home loan. For example, some banks will ask to see original payslips, tax returns and similar documentation, while others won’t approve a loan for over 80% of the property value under any circumstances.
Other lenders will require a signed formal loan offer from your nearest Australian Consulate, while yet other lenders will charge a higher interest rate simply because you are residing outside of Australia.
There’s also the possibility for significant delays in processing times, as many lenders don’t have a system in place for handling foreign addresses and phone numbers, for example.
We’ll find the ideal Australian expat mortgage lender for your individual needs
At BFG Loans, we’re committed to streamlining the process of applying for an Australian expat home loan for you as much as possible, with 30+ reputable lenders in our panel. Our proactive brokers want you to enjoy a seamless experience that sees you securing the ideal loan for your specific circumstances.
To get the ball rolling on applying for an Australian expat home loan, get in touch with our professional team today.