Home Loans

Australian expats often move overseas with the goal of taking advantage of both higher wages and lower taxes. For that reason, they want to use their higher income to obtain an expat mortgage in Australia.

The guidelines and Credit Policy for most banks are quite different for Australian expats who are looking to apply for a loan to buy an Australian property and this needs to be taken into account from the outset as it can have a significant impact on your borrowing capacity.

Generally speaking, it’s possible to borrow up to 70-80% of the property’s value and in some circumstances also up to 85% and not pay Lenders Mortgage Insurance (LMI) as an expat.

Currencies

One of the key differences between Aussie expat home loans and loans issued to those currently residing in Australia is that lenders will not accept all foreign currencies.

While all lenders have different policies, generally the main currencies that will be accepted as a form of income include the United States Dollar (USD), Great Britain Pounds Sterling (GBP), Euro (EUR), Singapore Dollar (SGD), Canadian Dollar (CAD), United Arab Emirates Dirham (AED), Hong Kong Dollar (HKD), Japanese Yen (JPY), Swiss Franc (CHF) and the New Zealand Dollar (NZD).

There are other currencies that are accepted, however, you might be forced to borrow at a lower LVR.

Interest Rates

Generally speaking, some lenders don’t offer discounted rates on Aussie expat home loans, however, the actual rate is comparable to most standard home loans and you should be able to obtain the maximum rate discount if you engage a broker that specialises in foreign income loans. Again, this will differ on a case-by-case basis.

As with most lenders, if you are unable to provide standard proof of income you will likely be forced to pay a higher interest rate or be ineligible for a loan

LVR and LMI

Some Aussie expat home loans are available up to a 90% LVR, however, the borrower will be required to pay Lenders Mortgage Insurance (LMI) which can be quite substantial. Alternatively, you may be able to access an 85% LVR loan and not pay any LMI if you meet certain special criteria

Unlike within Australia, where some lenders offer home loans at higher 90% LVRs without the need to pay LMI to certain professions such as Doctors, Accountants or Lawyers, this is not available to expats. If you engage a specialist foreign income broker, they may be able to advise expats living in the UK, USA, Hong Kong, and Singapore on how to obtain a loan as an expat that can be converted to one of these specialised loans when you repatriate back to Australia.

Tax Implications and Currency Fluctuations

It’s important to note that Australia has some of the highest tax rates in the world and different lenders will assess your income based on an Australian tax rate. This can mean your borrowing power is significantly reduced.

Similarly, given the fact that currencies fluctuate in value, many lenders will only accept a certain percentage of your income (60-90%) in a foreign currency to make sure they are protected in the advent of an adverse currency move.

It’s also worth noting that any negative gearing tax benefits won’t be included for Aussie expat home loans when assessing serviceability.

Home Loan Options for First Time Buyers

Many young couples head overseas with the goal of setting themselves up financially and purchasing an investment property that will eventually become their principal place of residence when they return. There are a number of home loan options for first-time buyers who happen to be expats. It’s important to consider the type and nature of your income and you’ll also be unlikely to qualify for the first home buyer exemptions and bonuses as they are predominantly focused on owner-occupied properties, although this can work in certain circumstances.

In this week's Q&A, we will answer a question from one of our viewers.

"Will future interest rates create more opportunity for middle-range income earners to invest in property?"

Lower interest rates generally make borrowing cheaper, potentially increasing accessibility to property investment, but the overall economic environment, housing market conditions, and government policies also impact affordability and investment incentives. 

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

#australia #economy #finance #investment #realestate #financialplanning #propertyinvestment #home #mortgage #advice #strategy #opportunity #growth #financialfreedom
As we navigate the dynamic landscape of the Australian economy, staying informed and engaged is essential. With that in mind, I'm excited to invite you to our upcoming Quarterly Review, scheduled for 20th/21st February.

We will delve into the current state of the Australian economy, shedding light on the challenges and opportunities within the mortgage finance market amidst these extraordinary times.

To secure your spot, please register through the following link: https://rebrand.ly/Feb2024_quarterlyreview

If you have any questions or concerns, please don't hesitate to reach out.

#australia #economy #finance #inflation #global #wealthbuilding #growth #financialplanning #investment #realestate #strategy #advice #investor #success #homebuying
In this week's Q&A, we delve into a viewer's query regarding potential windfalls for Australian expats earning in US dollars.

The value of the Australian dollar is subject to a complex interplay of factors, including interest rate decisions, economic indicators, commodity prices, central bank policies, political stability, and market speculation.

These elements collectively influence the performance of the AUD in currency markets. Notably, Australian expats earning in US dollars may find favourable conditions, particularly when contemplating future investments such as homes or properties in Australia.

The dynamics of these factors could provide a beneficial tailwind, enhancing the potential outcomes for expatriates considering financial moves back home.

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

#australia #economy #finance #investment #realestate #currency #growth #strategy #advice #financialplanning #propertyinvestment #2024 #wealth #future #sydney #brisbane #dreamhome
In this week's Q&A, we will answer a question from one of our viewers.

"Will the Australian Dollar fall further?"

Predicting currency movements is highly uncertain and influenced by numerous factors such as economic indicators, geopolitical events, and market sentiment. 

Various factors could affect the Australian dollar in 2024. These include changes in interest rates, global economic conditions, commodity prices and government policies.

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

#australia #economy #finance #inflation #currency #investment #financialplanning #advice #strategy #planning #future #wealth #success #investor #currencyexchange #growth #propertyinvestment
In this week's Q&A, we will answer a question from one of our viewers.

"Will housing prices decline now that interest rates are high?"

While higher rates can increase borrowing costs and potentially dampen demand for homes, the effect is nuanced. High-interest rates may seem like a disadvantage for those who need to take out a loan or buy something on credit, but investors can benefit by planning ahead and investing in suitable types of investments.

If you have any questions or need personalized information based on your circumstances, please don't hesitate to contact us.

#australia #finance #economy #investment #realestate #wealth #mortgage #firsthome #financialplanning #future #success #property #strategy #sydney
In this week's Q&A session, we will answer a question from one of our viewers.

"How can I rent and invest while also planning to move offshore?" 

Rentvesting is a great option that offers many benefits. One of the key advantages is that you can choose to live wherever you like rather than being limited to the areas you can afford to purchase a property.

As an investor, you can generate income through rent and benefit from tax deductions such as maintenance costs, mortgage interest, and property management fees, which are not usually available to owner-occupied properties.

If you have any queries or require personalized information based on your circumstances, please don't hesitate to contact us.

#australia #sydney #investing #tax #deduction #strategy #realestate #growth #wealth #property #investment #financialadvisor #dreamhome #rent #buy
In this week's Q&A, we will answer a question from one of our viewers.

"What are the ways to save on land tax when I am living overseas?"

It is important to note that each state and territory has its own land tax structures. These rules include exemptions, thresholds, and rates. Therefore, we'll be exploring the specific structure that applies to this individual.

If you have any questions or require personalized information based on your circumstances, please feel free to contact us.

#australia #sydney #tax #property #investment #structure #advice #finance #financialplanning #realestate #aussieexpat #future #growth #success #investor #investinrealestate #wealth
In this week's Q&A session, we will be answering a question from one of our viewers:

Do I need to pay capital gains tax before repatriating to Australia?

Capital gains tax (CGT) is a tax imposed on the profits made from the disposal of assets. Therefore, if there is no asset disposal, there won't be any capital gains created and consequently, no capital gains tax will be required to be paid.

If you would like to know more about this topic or have any specific questions about your situation, please feel free to contact us for guidance.

#asset #australia #finance #tax #capitalgain #investment #property #strategy #investingtips #aussieexpat #financialplanning #taxplanning #future #advice #wealthbuilding #realestate

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