Re: As a foreign investor how much will I be able to borrow?
Posted: Thu Jan 31, 2019 7:32 pm
Hello Karl. Welcome to the forums.
For a foreign citizen, lending criteria are much stricter than it is for Australian citizens. Few Australian banks will lend to foreign investors as they consider this a complex, high-risk area.
In saying that, foreign property buyers can still qualify for a mortgage in Australia.
The caveat is that you will normally be charged a higher interest rate typically around 6.5% to 8.00% per annum (p.a.).
As a general rule:
Cheers,
For a foreign citizen, lending criteria are much stricter than it is for Australian citizens. Few Australian banks will lend to foreign investors as they consider this a complex, high-risk area.
In saying that, foreign property buyers can still qualify for a mortgage in Australia.
The caveat is that you will normally be charged a higher interest rate typically around 6.5% to 8.00% per annum (p.a.).
As a general rule:
- You can borrow up to 70% of the property value of a new property in Australia with interest rates around 6.5% to 8%.
- You can borrow up to 50% at interest rates below 5.00% if you have a high net worth and earn a primary/preferred currency.
- Interest only loans are available with a maximum 5-year term.
- If you live in Australia or you're married to an Australian citizen then you can potentially borrow more.
- Your income must be in an acceptable currency, otherwise, we cannot assist you.
- Construction loans and vacant land are available at higher interest rates.
- Foreign business income is only accepted by one or two lenders.
Cheers,