Last Updated: 8th July, 2024

A Quick Overview

Details Description
Customer Goal To secure an investment property in Australia and overcome the challenges associated with their foreign income and expat status.
  • Difficulty in finding a lender that would accept their foreign income and provide a loan amount exceeding $2 million.
Loan Amount $2.2 million
LVR and Term 80% Loan-to-Value Ratio (LVR) over a 30 year
  • Combined annual income exceeding $527,000, primarily from foreign sources.
Solution Pramesh Vaidya found a lender that accepted 90% of their net foreign income for loan servicing, overlooked Daniel’s thin credit file, and considered bonus income. He secured a $2.2 million loan at a competitive interest rate of 8.5%, with flexible features such as extra repayments and redraw options.

Foreign income verification and loan caps – these were just a couple of the hurdles Daniel and Grace encountered in their pursuit of an Australian investment property.

Their eyes were set on a stunning $2.74 million property in Pymble, a prestigious Sydney suburb known for its top-notch schools and lush parks and nature reserves. It was a place they could envision themselves living in upon returning. With a combined annual income of over $527,000, they thought the hardest part was choosing the perfect home. They quickly learned, however, that dealing with expat status and finding a lender that would accept all of their foreign income would be no small feat.

Previous Setbacks

Daniel and Grace had already experienced challenges with two previous mortgage brokers. The first was unable to secure the borrowing capacity they required, leaving them disheartened. The second broker managed to obtain a pre-approval for $2 million, but it still fell short of the amount needed for their dream property. These setbacks led to increasing frustration and uncertainty about their ability to find the right loan.

Facing The Challenges Head-On

Grace, an Australian citizen, and Daniel, an Australian Permanent Resident, faced a unique set of obstacles. They needed a lender that would accept most of their foreign income and consider their tricky financial situation, including managing multiple sources of income and the fluctuating exchange rates of their foreign earnings. Additionally, Daniel’s financial history was complicated, due to her lack of a local credit file, which made it difficult for lenders to assess her creditworthiness in Australia. To top it off, they owned an investment property in Korea with an existing mortgage.

A Broker Who Made A Difference

Home Loan Experts Mortgage Broker Pramesh Vaidya stepped in with his deep expertise to tackle these challenges head-on. Leveraging his extensive network, Pramesh identified a lender that not only was open to working with Australian expats in Singapore but also accepted 90% of Daniel and Grace’s net foreign income for loan servicing. This crucial finding allowed the couple to meet the loan’s requirements.

Pramesh secured a lender that:

  • Offered the highest borrowing capacity.

  • Approved loans above $2 million.

  • Considered overseas bonuses in the assessment.

  • Excluded liabilities from their Korean property in the loan servicing calculation, as rental income was positively geared.

Pramesh proactively addressed potential roadblocks to ensure a smooth approval process. He worked with the lender’s business development manager to test scenarios and resolve issues promptly. His efforts culminated in Daniel and Grace securing a $2.2 million loan at a competitive interest rate of 8.5% for a three-year interest-only term, an excellent outcome given the complexity and risk of their loan of over $2 million; this success came despite Daniel’s lack of a local credit history in Australia. The flexible loan features, including options for extra repayments and redraw facilities, provided the stability and investment potential the couple was seeking.

Daniel and Grace were immensely satisfied with Pramesh’s dedication and the favourable terms he secured. They were impressed with Pramesh’s deep understanding of their unique situation and his relentless effort to find the right solution for them.

Don’t Let Expat Status Hold You Back: Connect With An Expert

Like Daniel and Grace, many expats achieve their dream of Australian property ownership with the right guidance. Our success stories speak for themselves. Let us connect you with a dedicated mortgage broker who will understand your unique situation and help you achieve your financial goals.

Contact us today at 1300 889 743 (+61 2 9194 1700 if you are outside of Australia) or complete our free online enquiry form to schedule a personalised consultation.