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

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Do different tax rates in Thailand and Australia affect my borrowing power?

Post by Otto Dargan »

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
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?

Post by Otto Dargan »

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

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