How much can I borrow?
- Borrow up to 90% of the property value if you’re an Australian earning income in a foreign currency.
- Borrow up to 80% of the property value if you can’t provide normal income verification documents.
- Borrow up to 100% of the property value with a guarantor home loan if you have a guarantor in Australia.
Will I get approved?
Individuals who are Australian citizens and earn a satisfactory foreign currency income are eligible to qualify. However, any other foreign income will be evaluated on a case by case basis, with certain lenders being more stringent than others. Certain lenders may utilize foreign tax rates instead of Australian tax rates, which can result in a higher borrowing capacity. If you reside in Australia and earn a foreign income, it is viewed more favorably than if you live abroad. Interest-only loans are also an option, with a maximum term of five years.
How much income will the bank use?
It is noteworthy that certain banks consider only a portion of your foreign income. This is because some lenders take into account fluctuations in exchange rates and therefore utilize only 60-90% of your foreign income. Consequently, it may be necessary for you to have an income in Australian dollars or produce evidence of rental income from an Australian property that you possess. However, our top lenders will take into account 100% of your foreign income provided you have a strong financial standing. Additionally, individuals earning foreign income in Australia are typically highly skilled professionals with secure employment and impressive earnings. As a result, they are eligible for the same home loan benefits and interest rate reductions as those earning Australian dollars.
What currencies do banks prefer?
The following currencies are accepted:
Great British Pound or UK Sterling (GBP), Euro (EUR), Hong Kong Dollar (HKD), New Zealand Dollar (NZD), Singapore Dollar (SGD), United States Dollar (USD), Canadian Dollar (CAD), Indian Rupee (INR), Indonesian Rupiah (IDR), Chinese Yuan Renminbi (CNY), Japanese Yen (JPY), Danish Kroner (DKK), Philippine Peso (PHP), Samoan Tala (WST), South African Won (ZAR), South Korean Won (KRW), Sri Lankan Rupee (LKR), Swedish Krona (SEK), Swiss Franc (CHF), Taiwan New Dollar (TWD), Tongan Pa’anga (TOP), and Ni-Vanuata Vatu (VUV).
If your currency is not among the preferred options, you may need to provide a larger deposit. To determine how much of your foreign income your bank will consider and whether a larger deposit is required, complete our free assessment form.
How do I prove my foreign income?
In order for your financial documents to be accepted by the lender, they must either be in English or translated by a certified interpreter. The specific documents required may vary depending on the lender, but typically include：
- A letter from your employer
- A copy of your employment contract
- Two payslips
- Three months of bank statements showing your salary deposits
- Tax returns from the previous fiscal year
What if I’m self-employed?
The lending rules for self-employed individuals are too intricate to be summarized on a web page as they differ based on various factors such as the country of residence, currency earned, citizenship, and ability to provide income proof like tax returns. For instance, lenders may be more inclined to consider a mortgage application if the tax returns in the country of self-employment are easy to comprehend. To increase the chances of approval, it is advisable to furnish evidence of income through tax returns for two years, bank statements for six months, or a letter from an accountant. Additionally, a complete credit history from the country of origin may be necessary and in some cases, the cost of living in the country of residence may be evaluated.
Please contact us to discuss your specific circumstances.