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Will the tax agreement be an issue while applying for a home loan?

Posted: Mon Jul 23, 2018 5:54 pm
by Ajjary
Hi Home Loan Experts.

I'm an Aussie working and living in Switzerland and I'm thinking of buying an investment property in Australia. My wife is a Swiss citizen and she has an Australian permanent residency (PR) visa.

We are planning to apply for a home loan in Australia. We were wondering whether the Double Taxation Agreement (DTA) between Australia and Switzerland will affect my borrowing capacity?

Look forward to hearing from you soon.

Re: Will the tax agreement be an issue while applying for a home loan?

Posted: Mon Jul 23, 2018 6:32 pm
by Otto Dargan
Hi Ajjary, Welcome to the forum.

Yes, Australian expats in Switzerland can get a home loan and they can get the same interest rates and discounts as Australian citizens.

Australian citizens and permanent resident (PR) visa holders living in Switzerland may be able to borrow up to 90% of the property value.

The Double Taxation Agreement (DTA) between Australia and Switzerland removes the possibility of being taxed twice as an Australian citizen living in Switzerland. What that means is that your assessable income will be higher so you have a better chance at borrowing the amount you need.

Bear in mind that your income will still be shaded by the bank. Some lenders are better than others with this so call us and we can help you find a lender that is not as risk-averse to non-resident borrowers.

You can find out more about the tax implications of buying property in Australia by speaking with your accountant or checking the Inland Revenue Department (IRD) and the Australian Taxation Office (ATO) website.

The great news is that the Swiss Franc (CHF) is one of the most common currencies that Australian banks deal with, which means that you have an excellent chance to get approved for an Australian expat home loan!

Please enquire online or call us on +61 2 9194 1700 and explain your situation so we can help you get approved for a home loan.

Cheers,

Re: Will the tax agreement be an issue while applying for a home loan?

Posted: Mon Jul 23, 2018 7:52 pm
by Ajjary
I have a personal loan and a couple of credit cards worth CHF 16,000. I wanted to know how my debt in Switzerland will be assessed?

Re: Will the tax agreement be an issue while applying for a home loan?

Posted: Mon Jul 23, 2018 8:59 pm
by Otto Dargan
Hi Ajjary,

Foreign debt is usually assessed at Australian interest rates which may sometimes be higher than what you’re paying in Switzerland.

Speak with one of our expat specialists by calling us on +61 2 9194 1700 or by completing our free online assessment form and let us help you find a suitable lender that meets your financial needs.

Cheers,

Re: Will the tax agreement be an issue while applying for a home loan?

Posted: Mon Jul 23, 2018 9:48 pm
by Ajjary
Thanks for the information, Otto. I’ll discuss with my wife and email you guys. Cheers.