How much can I borrow?
Australian expats in China can get a home loan!
Australian banks and lenders typically limit foreigners to borrowing up to 80% of the property value. However, this isn’t the case for mortgages for Australian expats in China. Since you’re still an Australian citizen, you can borrow up to:
- 80% of the property value: You can’t borrow more than this if you’re unable to present the banks with financial documents that can prove your foreign income.
- 90% of the property value: By providing full documents of your income, assets and debts that show you’re in a strong financial position, you may be able to borrow up to this amount.
In the case of mortgages for Australian expats in China, some lenders may still assess you as a foreigner so it’s essential you apply with the right lender.
The Chinese Yuan (CNY) or Renminbi (RMB) is accepted by most Australian lenders and you can prove your income as if you were an Australian resident.
Get competitive interest rates and invest in property in Australia through mortgages for Australian expats in China.
Speak with one of our expat home loan specialists on 1300 889 743 (+61 2 9194 1700 if you’re overseas) or complete our free online assessment form.
We may be able to qualify you for a home loan for Australian expats in China today!
Can I use Chinese Yuan (CNY) for mortgage repayments?
Yes! The Chinese Yuan (CNY) or Renminbi (RMB) is on the approved list of acceptable currencies for mortgages for Australians living in China.
CNY or RMB is one of the strongest performing currencies in the world thanks to China’s population, manufacturing industry, as well as its growing middle class.
Luckily, you may still qualify for a home loan in Australia even if you’re earning in a currency other than Yuan/Renminbi and it falls outside the list on the Australian Expat Mortgages page.
Note that lenders usually have some restrictions and conditions in place including limiting your borrowing capacity to 80% Loan to Value Ratio (LVR).
What do I need to prove my income in China?
Mortgages for Australian expats in China can be taken out using the same documents as borrowers in Australia applying for a home loan to prove their income.
If you’re borrowing more than 80% LVR, you can prove your income through:
- Your two most recent payslips (must not be handwritten).
- Your last two years’ financial tax returns.
You can even prove your income through a letter from your employer as long as you’re borrowing less than 80% LVR.
My financial documents are in Mandarin / Cantonese!
If your financial documents are in Mandarin, Cantonese or any other foreign language, you may need an interpreter’s certificate as some lenders won’t accept documents that aren’t written in English.
An interpreter’s certificate is an official and certified document that translates the original financial document to English.
The simplest way to get an interpreter’s certificate may be through the Australian Consulate in China.
However, you can also send us in your documents directly since some of our mortgage brokers are fluent in Mandarin and Cantonese.
Get competitive interest rates and home loan features!
An Australian expat in China is still an Australian citizen!
- Extra repayments.
- Redraw facility.
- 100% offset account.
- Salary crediting.
- Line of Credit (LOC), and more.
Call us on 1300 889 743 (+61 2 9194 1700 if you’re overseas) or fill in our free online assessment form and mortgage broker who are specialists in mortgages for Australian expats in China can help you get a competitive interest rate and select the right features for your situation.
Do I need to have genuine savings?
Australian banks and lenders will want Australian expats in China to have a deposit of at least 5% of the purchase price that has been saved as genuine savings.
The most common source of genuine savings are savings or term deposits held for 3 to 6 months in a bank account.
However, if you have a large deposit then you may not need to prove genuine savings. Also, some lenders can consider the equity from an existing property that you already own in Australia as part of your deposit.
No deposit home loan solutions are available!
Certain professionals can even get waived LMI!
LMI can be thousands of dollars!
There’s good news if you’re an Australian expat working in a professional field in China!
Banks prefer lending money to particular professionals. Banks offer them significant interest rate discounts and even completely waive the cost of LMI!
The main professions eligible for waived LMI are:
- Accountants, including actuaries, finance managers and auditors.
- Legal professionals, including solicitors, barristers and lawyers.
- Medical practitioners, such as dentists, vets and doctors.
- Mining engineers, including surveyors, geologists and geophysicists.
- Other high income professionals may also qualify.
Call 1300 889 743 (+61 2 9194 1700 if you’re overseas) or complete our free online assessment form to find out if you qualify for waived LMI as an Australian expat in China.
How does Australian tax law come into play?
The following is general information and must not be constituted as tax advice. It is recommended that you speak with an accountant or a tax adviser before you plan to buy or invest in Australian property.
In 1988, Australia and China signed an agreement for the Avoidance of Double Taxation.
What this means is that if you buy property in Australia, you’ll only have to pay tax to the Australian government and not to the Chinese State Administration of Taxation (SAT).
Essentially, you’re able to take advantage of negative gearing benefits on an investment property that you own because you’ll be lodging income tax returns in Australia.
For more information, you can check out the official website of the Australian Taxation Office (ATO) or the State Administration of Taxation of The People’s Republic of China.
What if I’m living in Hong Kong?
China follows the constitutional principle of “One Country, Two Systems” and unfortunately, despite the existence of a double taxation agreement (DTA) between Australia and China, it doesn’t extend to the Hong Kong Special Administrative Region!
If you’re an Australian expat living in Hong Kong or if your income is sourced in Hong Kong, the DTA will not be applicable to you.
You can learn more about this in our Mortgages for Australian expats in Hong Kong page.
Apply for an Australian expat home loan today!
Choosing the right lender is the key to getting approved for an Australian expat in China mortgage.
We have relationships with almost 40 different lenders including the major banks, we can help you find the right lender for your situation.
Our mortgage brokers are specialists in mortgages for Australian expats in China! Did we mention that most most of our services are free?
Call us on 1300 889 743 (+61 2 9194 1700 if you’re overseas) or fill in our free online assessment form today.