Do different tax rates in Thailand and Australia affect my borrowing power?

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Holocene
Posts: 15
Joined: Tue Mar 27, 2018 1:48 pm

Do different tax rates in Thailand and Australia affect my borrowing power?

Postby Holocene » Mon Jul 23, 2018 5:54 pm

Hi Home Loan Experts.

I am an Australian currently living in Thailand. It has only been a few years since I’ve moved here due to my work. I work as an engineer at BTS Group Holdings PCL an earn 500,000 Thai Baht a month. I have always dreamed of buying a home in Melbourne (I’m from Perth) and settling there. Right now, I want to take out a home loan to invest in a house that is on sale.

I was checking the tax rates and Thailand has low tax rates compared to Australia. Will it bear any impact on the amount how much I could borrow?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Do different tax rates in Thailand and Australia affect my borrowing power?

Postby Otto Dargan » Mon Jul 23, 2018 6:31 pm

Hi Holocene, Welcome to the forum.

Lenders generally allow Australian expats in Thailand to take out a home loan. However, expatriates may have trouble meeting the requirements to get their loan approved.

Also, note that Australia’s tax rate is higher than Thailand’s, so it may affect your borrowing power if Australian banks assess your income at those rates. We know some lenders who’ll use the tax rate of Thailand, as opposed to Australian tax rates, which can significantly improve the amount you could borrow.

As an Australian expat, you may be able to borrow up to:
  • 80% of the property value, if you do not have sufficient documents to prove your foreign income.
  • 90% of the property value, if you are in a good financial position, and have a high income and stable employment.

Please call us on +61 2 9194 1700 and one of our specialist mortgage brokers will help you to get approved.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Holocene
Posts: 15
Joined: Tue Mar 27, 2018 1:48 pm

Re: Do different tax rates in Thailand and Australia affect my borrowing power?

Postby Holocene » Mon Jul 23, 2018 7:52 pm

What are the other things that could affect my borrowing power apart from the differing tax rates?

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Otto Dargan
Mortgage Specialist
Posts: 7021
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Do different tax rates in Thailand and Australia affect my borrowing power?

Postby Otto Dargan » Mon Jul 23, 2018 8:58 pm

Hi Holocene,

Your borrowing capacity could be affected by several other factors such as exchange rate fluctuations, foreign tax rates, negative gearing benefits and repayments on foreign debts. Most lenders will use:
  • Somewhere between 60% and 90% of your actual income.
  • Australian tax rates even if you are living in a country without an income tax.
  • No negative gearing benefits.
  • Loaded repayments on your foreign loans.
  • Income evidence such as payslips and employment letter, and they must be in English.
These all mean that calculating your borrowing power is quite complicated and will vary between lenders.

Speak with one of our Australian expat specialists by calling us on +61 2 9194 1700 or by completing our free online assessment form and discover how we could help you.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Holocene
Posts: 15
Joined: Tue Mar 27, 2018 1:48 pm

Re: Do different tax rates in Thailand and Australia affect my borrowing power?

Postby Holocene » Mon Jul 23, 2018 9:48 pm

Thanks for all your help, Otto. Your website has great content! I’ll call you guys on the coming week. Bye.


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