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Getting a home loan with a foreign citizen

Posted: Wed Jan 23, 2019 6:32 pm
by Shane1979
Hi, I’m looking to buy an investment property in Melbourne, either renting it out long-term or a short-term rental/Airbnb. I am an Australian citizen working and living in the U.K. for the last decade. I am married to a British citizen and she makes more than I do. Will the income of my spouse be considered when banks assess our borrowing capacity for an investment property?

Re: Getting a home loan with a foreign citizen

Posted: Wed Jan 23, 2019 6:55 pm
by Otto Dargan
Hello Shane. Welcome to the forums.

Being married to a foreign citizen will affect how banks assess your application. Most lenders will ignore the income of your partner if they are not an Australian citizen or an Australian permanent resident. However, this is a grey area of policy and we’ve helped many clients use their spouse's income to improve their home loan borrowing power.

A lender may consider your spouse’s income if:

  • They have a valid Australian visa.
  • They’re living in Australia.
  • They have ties to Australia such as family or close relatives.
  • You’ve been married for over two years.
  • You have children together.
  • You’re the main income earner.

It’s best to call us on 1300 889 743 (+61 2 9194 1700 from outside of Australia) or fill in our free assessment form so we can determine which lenders take a more common sense approach to helping borrowers who are applying with a foreign partner.

Cheers,

Re: Getting a home loan with a foreign citizen

Posted: Wed Jan 23, 2019 7:15 pm
by Shane1979
Ok sounds good. Will I be paying a higher interest rate then?

Re: Getting a home loan with a foreign citizen

Posted: Wed Jan 23, 2019 7:46 pm
by Otto Dargan
Hi Shane,

Some banks do not allow citizens living abroad to qualify for discounted home loans.

As a specialist mortgage broker, we can often negotiate interest rates that are substantially below the Bank Standard Variable (BSV) rate with some of our lenders.

Unless you cannot provide evidence of your income, you should not pay a higher interest rate for an Australian mortgage.

Cheers,

Re: Getting a home loan with a foreign citizen

Posted: Thu Jan 24, 2019 1:24 am
by Shane1979
How much deposit do I need to provide? Can I use the equity from another Australian property?

Re: Getting a home loan with a foreign citizen

Posted: Thu Jan 24, 2019 1:58 am
by Otto Dargan
Hi Shane,

Australians living abroad usually have to provide 10% deposit and additional funds to cover property purchasing costs including stamp duty, legal fees, mortgage setup costs, and LMI.


We are specialist in Australian expats home loans.
Call us on 1300 889 743 or complete our free assessment form.