Buy a House Even If You’re In Another Country with the Help of Australian Expat Mortgage Experts

Are you currently living and working in another country but want to purchase a property in Australia? Are you worried that your current situation will prohibit you from acquiring a property in your country of origin?

You should not be worried because Australian expatriates can find assistance in obtaining a loan. Australian expat mortgage experts can help you locate a lender who will approve your mortgage application.

Is the loan application a different process where expats are concerned?

Typically, the loan application process is not that different. Ideally, lenders should not look at your expatriate status as a negative thing. It should not be used as basis for refusing you a loan. They should give you equal opportunity other borrowers who are current residents of Australia are getting.

However, there are times when expatriates encounter problems, which make the whole process very difficult. These challenges often have something to do with their documentations.

Challenges encountered by expats when applying for a loan

Living in another country can cause a few problems for Australian citizens who wish to take out a loan to purchase a property in Australia. Much of them have to do with documentation. Since one of the requirements of lenders is to show proof of income as well as other stuff like credit rating, there are some expats who may find it difficult to adhere to because they lack some documents.

Because different countries operate differently, some expats may be at a loss when they are asked by lenders to present a specific paperwork. Pay slips, for example, can be an issue. Some countries do not provide formal pay slips. For an expat who does not get pay slips, proving his employment may become very difficult.

That also goes for foreign companies that have non-English pay slips. But this can be easily remedied by having someone translate the documents.

And when someone cannot prove employment and the financial ability to repay the loan, there is very little chance of lenders approving the loan.

Also, there are some lenders who would deliberately give expats a higher interest rates due to their status. This is unacceptable. You should not allow this to happen. Your interest rate should only be defined by your financial position.

Fortunately, there are several ways to solve these little challenges. With the help of Australian mortgage brokers these things can be remedied.

These people will help you learn how to buy property in Australia even if you are not currently residing there. They will make the process a lot easier and less stressful for you. In addition, their assistance will keep you from falling into the traps laid out by certain lenders who are out to take advantage of you.

How much can an expat borrow?

An expatriate can borrow up to 95% LVR depending on his credentials. If he meets the guidelines set forth by lenders, then there should not be any problem.

How do you qualify for an Australian expat mortgage with 90% to 95% LVR? You need to be in a strong financial position—you have proven your income source and have a reasonable debt. On the other hand, those who cannot prove their financial stability may only settle for 80% loan.

It is also important to know that loans that are more than 80% LVR, borrowers will need to pay lenders mortgage insurance—a premium borrowers pay on top of the loan.

Expats are going to find the most competitive rates with the help of the best mortgage broker. By seeking assistance from mortgage experts, Australians living in another country will still be able to buy a house in Australia.

Should they be worried about interest rates?

There are some people who need to be worried about getting higher interest rates compared to borrowers who are residents of the country. Some lenders would go out of their way to give expats a higher interest rate, but there is no reason for borrowers to accept this. They can refuse, in case they are given a high rate, and look for another lender.

This is why working with a mortgage broker is always the best option for an expatriate. Having a broker by their side can shield expats from lenders who try to take advantage of them.

Ideally, the interest rates will, just like in the case of any other borrower, will depend on the financial status of a person.

Proving employment

This is where some expats can have problems. Showing pay slips that are in English can solve the issue with income. Pay slips that are in another language will need to be translated. In other cases, employers can write a letter confirming an expat’s employment. Some lenders will accept this.

One of the things an expatriate can do is to do some research and make sure that you are applying to the right lender. Know what their policy is for non-resident borrowers.

What about FIRB approval?

An expatriate won’t need the approval of the Foreign Investment Review Board since they are still Australian residents and not foreigners.

Getting qualified for an Australian expat mortgage is possible. With the right information and help from professionals, you should be able to buy a property in Australia.