Do you have your Tax ID Number ready?
Whether you’re a foreign citizen or an Australian living abroad (Australian expat), you’ll be required to provide your Tax Identification Number (TIN) when applying for a mortgage in Australia.
Where do I find my tax file number?
This table will help you to find your Tax ID Number:
Why do I need to provide my TIN?
The TIN requirement was introduced under the Common Reporting Standard (CRS) which came into effect on 1 July 2017.
The CRS is the international standard for the collection, reporting and exchange of financial account information on foreign tax residents and follows on from the Foreign Account Tax Compliance Act (FATCA) introduced in 2014.
As mortgage brokers, we need to provide this information to banks and lenders because the CRS requires financial institutions to report information to overseas governments so they can calculate tax correctly.
Bear in mind that while the CRS came into effect on 1 July 2017, the Australian Taxation Office (ATO) has been reviewing financial accounts, including home loan facilities, since the first half of 2018.
What will my Tax ID Number be used for?
This information is reported to the ATO who share this with the relevant foreign tax authorities who have signed onto the CRS.
In exchange, the ATO receives information on Australians living abroad (Australian expats) in another tax authority.
The scheme is designed to ensure non-residents with financial accounts, including a mortgage, are complying with the rules of their overseas tax authority.
The same is true for Australian expats with financial accounts in other countries.
Will it affect you qualifying for a home loan?
We don’t believe the CRS scheme will impact the way banks assess your mortgage application.
What if I can't provide my TIN?
Not all countries have signed onto the CRS.
In this case, you won’t be required to provide your Tax Identification Number but we imagine most countries will onto the CRS in the near future.
In other cases, some countries don’t have a personal tax system, such as Saudi Arabia, so they don’t issue TINs.
This is acceptable to some lenders as well but it’s important to speak with us first so we can find a lenders that can consider your mortgage application.
Do you need a non-resident mortgage?
Are you an Aussie expat or a foreign citizen that needs a home loan?
We can help you qualify for a mortgage to buy property in Australia.
Lending rules have become stricter for non-resident borrowers so speak with a specialist today.
Call us on 1300 889 743 or complete our free assessment form.