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Australian lenders are moving the goalposts on a weekly basis for expat investment loans, in this article, we give you the facts as they currently stand. 

Required Documents: 


  • Current driver’s license and passport


  • Evidence of your deposit

  • Last 3 payslips

  • 3 months of bank statements showing salary credits

  • Employment contract or letter from employer on company letterhead stating position, start date and remuneration

  • Saving statement(s) + screenshot of internet banking up to the current day

  • Latest credit card statement(s)

  • Latest statement of any other assets (eg. shares, managed funds) or liabilities (eg. personal loan, car loan).

If you currently own property in Australia: 

  • Latest home loan statement for property(s) owned + 6 months repayment history from internet banking

  • Latest rental income statement for investment property(s)

  • Latest rates notice for property(s) owned.

Lending institutions will require your identification to be signed by a Notary Public and PDF copies are required for all documents (photos are acceptable as a last resort).

Salary Currency: 

Most lenders are seeking strong currencies, like the USD, Pound or Euro and some are starting to grade currencies. For example, if you are paid in USD, for every $1 you earn the bank discount it by 10% and treat it as 90c, as a rule of thumb we work from the below: 

  • GOLD - British Pound (GBP), Euro (EUR), Hong Kong Dollar (HKD), New Zealand Dollar (NZD), Singapore Dollar (SGD), United States of America Dollar (USD), Canadian Dollar (CAD)

  • SILVER - Japanese Yen (JPY), Indian Rupee (INR), Indonesian Rupiah (IDR), Vietnamese Dong (VND), Chinese Renminbi (CNY), Qatari Riyal (QR) and Dirham (AED).

Other currencies are on a case by case basis and discounting can be anywhere from 10% - 40%.

Required Deposit: 

  • LVRs (Loan to Value Ratio), better know as the deposit - Generally, a 30% deposit (70% LVR) is required, however, some lenders will go up to 20% deposit (80% LVR)

  • If you own an existing property in Australia the equity in this property can be used to fund your deposit

  • Foreign currency can be used for the deposit, it’s advised to search for the best exchange rate when transferring. Tax implications on currency transfers are dependent on your personal circumstances, please consult your accountant.

Interest Rates: 

Interest rates are generally the same rate for expats, some smaller lenders will apply a premium. 

Additional Income Consideration: 

  • Negative gearing income is generally not allowed, however, can be accepted on a case by case basis

  • Bonus income is generally not considered part of the salary package, however again will be considered on a case by case basis

  • Allowances, overtime and commissions are generally allowed if proof can be shown they form an ongoing part of your salary

  • Varying pay dates are viewed negatively, especially if the business is unknown (not a multinational).

Employment Types:

  • Contract salary is generally acceptable if proof of contract history and invoice payments can be established. Lenders generally like to see at least one year left on your contract when applying for a loan

  • Self-employed applicants are generally not accepted (unless you can show proof of salary from your business)

  • Unemployed applicants are generally not accepted

  • Self-funded retirees can be accepted if a strong financial position can be established.

Citizenship & Residency: 

  • At least one borrower must be an Australian citizen or permanent resident

  • Non-Australians can only be considered if married and borrowing with an Australian citizen, unfortunately, this isn’t accepted by all lenders and FIRB (Foreign Investment Review Board) approval could be required

  • Non-residents for tax purposes are treated as citizens.

Lender Considerations on a Case by Case Basis:  

  • Off the plan financing is becoming harder and harder, with some lenders pulling out altogether

  • Certain postcodes are blacklisted

  • Property square meter size can effect the required deposit.


  • Mortgage pre-approval can take anywhere from 1 - 3 weeks depending on the strength of your application. In most cases, the pre-approval will be valid for six months

  • A week should be allowed for the courier of original documents via express courier mail.

Australian expats are highly regarded by Australian financial institutions and all scenarios are on a case by case basis. If you’re looking to invest in the Australian property market and require financing Milk Chocolate can handle the mortgage process from beginning to end for you. There is a lot that goes into the perfect application, at Milk Chocolate we ensure the application is as strong as possible, the process is smooth and our clients get the funding they require.

Milk Chocolate purchase residential and commercial property in Australia on behalf of Australians living abroad, looking for a home or investment property. To see how we can help you get in touch here

Thanks Michael 

Source: SF Capital

#onthehunt #milkchocproperty #propertyconcierge

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