Just like most other nations, buying property in Australia as a foreigner can be confusing and involved. However it does not have to be! A small amount of work and you can be on your way to owning your own home or investment property.
Be Aware of your Situation
Your overall situation, such as your financial position and visa status, is important to know. Many things can affect your initial eligibility and how much you can borrow, as well as parts of the application process.
Making a list of these things when you start can save headaches down the road. This way you will be prepared and may only need to source one or two items you do not have when you apply, perhaps even none at all.
If you are a temporary Australian resident for example, your visa status can determine whether the banks are willing to loan to you. If you are the spouse or partner of an Australian citizen, this will affect how much you can borrow.
Information you may need includes, but is not limited to;
- Whether you are investing, or intend to live in the property.
- Your visa status if you are coming to, or already reside in the country. Will you be a temporary resident, or are you an Australian expat buying from overseas?
- How long you intend to stay. There are often limits to how short your stay can be.
- How much you earn, including proof of income such as a payslip or employment letter.
- Your savings.
- Your debts. (Note that you do not have to declare any foreign debts in Australia).
Knowing this type of information, and having the documentation when you apply to a bank or through your mortgage broker is important. It makes it easier for you to do your research, and helps the professionals give you the right service and the right advice.
Find out below how a mortgage broker can increase your chance of getting a loan approved.
Do you have an Australian property in mind? Here at the Home Loan Experts we can help! Enquire online or contact us today on 1300 889 743 (When outside Australia call +61 2 9194 1700).
Always do some research, or have someone do it for you
If you are aware of your situation, your research can be a lot easier and more focused. At least have an idea of what kind of real estate you would like to own. You can then look at properties that fit your desires, and that you are more likely to be able to afford.
Using professionals is important, and unless you really know what you are doing, their help will be invaluable. Find out what types of professionals you may need and go from there. For example if you do not intend to visit Australia and look at property yourself, or you just do not have time, a buyer’s agent can search on your behalf.
Our buyer’s guide can tell you more about buyer’s agents, and about purchasing property in Australia. A good mortgage broker can help put you in contact with the right professionals.
It is important when buying property, to buy in the right areas and at the right price. It is also important to make sure your chosen property is in good condition, and if you want to sell in the short term, that its value is set to rise. A buyer’s agent can do this type of research for you.
To find much of this information you can use online search tools. Once you have found specific people who may be able to help, you can contact them directly via email, or phone call.
You may need to apply for Australian Government approval
The Australian Government monitors foreign investment in the country through an organisation called the Foreign Investment Review Board or (FIRB). As this includes real estate you will need to apply for FIRB approval, unless you are an Australian citizen or permanent resident.
Talk to a mortgage broker
A mortgage broker in Australia is essential if you want to get the best loans and the lowest rates. As a good broker works with many banks and lenders, and understands their lending policies, they also greatly increase the chance of your loan application being approved.
They do this by acting as a mediator between yourself and the bank. With their knowledge, they should know the laws and regulations relating to your specific situation. Using this information they will only apply to the lender most likely to approve your loan, at rates you can afford.
For most types of residential loans the services of a mortgage broker are free, as the banks and lenders pay them once a loan is approved. A good broker can also get you in touch with other financial and legal professionals such as conveyancers, solicitors and buyer’s agents.
We can help!
Here at the Home Loan Experts we have mortgage brokers that specialise in non-resident and expatriate home loans. We work with over 40 different lenders and deal with everyone from temporary residents within Australia, to foreign citizens remaining overseas.
To find out more you can contact us on 1300 889 743 (When outside Australia call +61 2 9194 1700) or enquire online and one of our specialist brokers will contact you.