How to get a home loan as an expat

Buying property in Australia while
living overseas can be a good idea. Whether you're planning to invest or
eventually return and live in the property, many expats are looking to get
their foot on the property ladder back home.

However, it’s important to understand
that managing the home loan process as an expat can be more complex than it is
for local buyers. Here's what you need to know to make it happen.

Not all lenders will work with expats
The first challenge many expats face is simply finding a lender who will
consider their application. Some banks don’t lend to borrowers living overseas,
while others may only accept applications from expats in certain countries or
working in particular industries. Working with a mortgage broker who
understands expat lending criteria is critical as they’ll know which lenders
are expat-friendly.

Foreign income gets extra scrutiny
If you’re earning an income in a foreign currency,
expect lenders to be extra conservative. Even if you're on a high income, most
lenders will only consider 70-80% of your foreign income in their borrowing
capacity calculations. On top of that, not all currencies are accepted. If
you’re paid in a less commonly used currency, your borrowing power may be
significantly limited.

Tax rules can impact your borrowing power
Some lenders will assess your income using Australian tax rates, even if you're
living in a country with lower tax obligations. This can reduce your assessed
net income and therefore reduce how much you can borrow. However, certain
lenders may assess your application based on your actual net income, which can
make a big difference if you're in a low-tax environment.

Documentation can be tricky
Getting all the paperwork sorted from overseas can be one of the biggest
problems for expats. Lenders may require original signed documents, certified
copies, or even that some forms be witnessed. Depending on where you live, this
can involve booking time with a notary, solicitor, or a visit to your nearest
Australian embassy. The good news is that digital documentation is becoming
more widely accepted, and some lenders now allow electronic witnessing under
specific conditions.

Working with the right broker makes all the difference
A broker who understands the expat market will know
which lenders to approach, how to present your income, and what documents are
needed from day one. They’ll guide you through the witnessing process, help you
avoid unnecessary delays, and make sure your loan is structured in a way that
supports both your short-term investment goals and long-term plans to return to
Australia.