Why Do Banks Favour Australian Expats From Canada?
Canada enjoys a robust economy with a rising property market and one of the safest banking systems in the world, an industry that shares many similarities with Australia.
As such, Canadian dollars (CAD) are considered as acceptable currency by most Australian lenders when it comes to assessing an expat mortgage application.
You’re still an Australian citizen even if you’re living in Canada!
How Much Can I Borrow?
- Australian citizens and permanent resident (PR) visa holders living in Canada may be able to borrow up to 90% of the property value.
- Self-employed borrowers may be able to borrow up to 80% of the property value with one of our lenders and we have at least one that will use 90% of your net income rather than gross income.
We can help you borrow up to the maximum amount based on your situation!
Call 1300 889 743 (+61 2 9194 1700 from outside of Australia) or complete our easy free assessment form today.
What Benefits Do I Get As An Aussie Expat In Canada?
- You can get the same interest rates as an Australian citizen.
- Some lenders will use the tax rate of Canada, as opposed to Australian tax rates, which can greatly improve your borrowing power.
- Loans are available for purchase, refinance, investment property or to buy a house and land package.
- You can buy a new property, an existing property or vacant land.
Australian foreign income mortgage calculator
Discover if the bank will accept your foreign income.
What Are Some Things I Need To Consider?
- If you’re a dual citizenship holder or you’re married to a Canadian citizen, some lenders may treat you as a foreignerso choosing the right lender is essential to maximising your borrowing power.
- If you’re earning Candadian Dollars but you can’t provide sufficient documents to prove your foreign income, such as recent payslips, or tax returns, then you may be limited to borrowing up to 80% of the property value.
- A Power Of Attorney (POA) in the name of a solicitor or family member is required by some banks.
Get the same interest rates as Australians back home!
Even though you’re technically a non-resident, to lenders in Australia you’re still a citizen.
That means you can actually get the same interest rates as Australians living and working back home!
Discounts are another story completely: some lenders simply don’t offer the same reduced interest rates. Despite this, we have strong relationships with almost 40 lenders and are often in a position to negotiate reduced rates on your behalf.
Am I Restricted To Only Buying A New Property?
As an Australian citizen living overseas, you’re actually permitted to buy a new property, an existing property or vacant land. You can even buy a commercial property!
Call us on 1300 889 743 (+61 2 9194 1700 from outside of Australia) or complete our online enquiry form to discuss your situation with one of our specialist mortgage brokers.
Aussie Expats In Canada – FAQs
It’s essential you speak to your accountant before you make the decision to buy or invest in property in Australia.
Generally speaking, if you’ve lived in Canada for more than two years, the
Australian Taxation Office (ATO) will class you as a non-resident for tax purposes.
The ATO uses very particular tests to work out whether you’re an Australian citizen or non-resident, so it’s essential you speak to the tax office and your accountant.
For Australians living in Canada classed as non-residents, your Australian-sourced income and capital gains on Australian property are taxable in Australia.
Since you’re earning income in Canada and not paying tax in Australia, the loss you sustain from your property back home has nothing to offset against.
An important thing to remember though is that these losses can add up while you’re overseas. If you eventually do return home from Canada, you can negatively gear these losses and once again offset your Australian income come tax time.
Tax law changes on a regular basis so please check with your accountant and both the ATO and the Canada Revenue Agency (Agence du revenu du Canada).
Disclaimer: The above information is to be taken as general tax information only and does not constitute financial advice. Australian and international tax law is subject to change so you should speak to a financial professional before making any financial decision including the purchasing of property in Australia.
In the past few years, several Australian states and territories introduced a stamp duty surcharge for foreigners buying real estate Down Under.
The surcharge doesn’t apply to Australian expats in Canada but there are exceptions to this rule where you can get caught out.
- For example, Australian permanent residents can actually be hit with the surcharge because they’re not technically Australian citizens.
- Another example is if you’re buying the property with a Canadian citizen or another foreign national.
Because they have an interest in the property, certain states will take this into account and apply the surcharge.
Not all states apply the same rules, and regulations around this continue to develop, so we recommend that you refer to the foreigner stamp duty page to stay informed.
What If I’m Applying With My Partner Who’s Not Australian?
If you are married or in a de facto relationship with a foreign citizen, there are three ways a lender can assess your application:
- Assess you both as Australian citizens
- Assess you both as foreign investors
- Use the nationality of the highest income earner to determine how to assess your loan
- You’re the main income earner
- You are married or have been in a de facto relationship for over two years
- You have children together
- Your partner has a valid visa for Australia
What About My Foreign Partner’s Salary?
Most lenders will ignore the income of your partner if they’re not an Australian citizen or resident.
We’ve helped many clients get approved through exceptions to this guideline. We know lenders who can accept your Canadian partner’s salary in the following circumstances:
It’s best to discuss your situation with our expert mortgage brokers. Call us on 1300 889 743 (+61 2 9194 1700 from outside of Australia) or fill out our free online assessment form to speak with an expert today!
What About Foreign Citizen Stamp Duty?
When you get a home loan with a Canadian citizen, you are likely to pay foreign citizen stamp duty.
You might be able to avoid it, however, if only the Australian citizen is on the title of the loan while borrowing with a foreign citizen or non-resident.
As this is a complicated structure, and very high risk, lenders accept only borrowers who are in a spousal or de facto relationship.
You can find the lending criteria and advantages of this type of loan on our one on title, two on loan page.
Are there self-employed solutions available?
If you’re in this situation, we understand that it can be difficult to provide up-to-date financials on your income and expenses to the bank. Don’t worry!
Simply fill in this easy assessment form, tell us about your situation and one of our mortgage brokers will come back to you with some solutions.
Apply for an Australian expat mortgage today!
We’re experts in getting Australian expats living in Canada approved for a mortgage in Australia.
Most of the time our services are free!
Please call 1300 889 743 (+61 2 9194 1700 from outside of Australia) or complete our free assessment form to speak with one of our experienced mortgage brokers.