As an expat how much can I borrow?

Any general questions you might have in regards to loans and finance.
Aari
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Joined: Mon Feb 25, 2019 12:33 pm

As an expat how much can I borrow?

Postby Aari » Mon Feb 25, 2019 12:35 pm

Hi HLE, I’m an Aussie citizen looking for a home loan provider. I’m currently stationed in Kabul, Afghanistan working for a non-profit organisation called the Danish Refugee Council. As an expat how much can I borrow? FYI, I’m paid in AUD and earn about 90k a year.

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Otto Dargan
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Re: As an expat how much can I borrow?

Postby Otto Dargan » Mon Feb 25, 2019 3:49 pm

Hello Aari. Welcome to the forums.

Australians expats living overseas can typically borrow up to 90% of the property value.

When calculating the borrowing capacity of Aussie expats most lenders will:
  • Consider somewhere between 60% and 90% of your foreign income.
  • Apply Australian tax rates when assessing your income, even if you’re living in a country without tax rates.
  • Not apply negative gearing benefits for any properties that you already own in Australia.
  • Load the interest rate on your foreign loans as a buffer in the event that rates were to rise. They basically apply a higher interest rate to foreign debt as a buffer. Lenders want to be sure that if overseas rates (whichever country it may be) were to rise, you could still afford the repayments.

We specialise in Australian expat home loans.

Speak to one of our experienced mortgage brokers today by calling 1300 889 743 (+61 2 9194 1700 from outside of Australia) or fill in our free assessment form to find out how much you can borrow.

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

Aari
Posts: 3
Joined: Mon Feb 25, 2019 12:33 pm

Re: As an expat how much can I borrow?

Postby Aari » Mon Feb 25, 2019 5:23 pm

Over the last few years, I’ve saved up about $50k which I’m planning to use as the deposit. I’m hoping to purchase a property in Surry Hills which is on the market for $485,000. Is my deposit enough to cover the deposit as well as any other costs involved?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: As an expat how much can I borrow?

Postby Otto Dargan » Mon Feb 25, 2019 6:49 pm

Hi Aari,

Australian citizens living abroad will typically need to put down around 10% of the property value as a deposit plus additional costs like stamp duty, legal fees, mortgage set up costs, and Lenders Mortgage Insurance (LMI).

Please use our purchasing costs calculator to find out the total costs involved.

The deposit typically needs to be in the form of genuine savings. If you already own real estate in Australia, then you can use equity as a deposit too.

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

Aari
Posts: 3
Joined: Mon Feb 25, 2019 12:33 pm

Re: As an expat how much can I borrow?

Postby Aari » Mon Feb 25, 2019 7:21 pm

Everything else seems manageable but do I really need a Power of Attorney?

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Otto Dargan
Mortgage Specialist
Posts: 7391
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: As an expat how much can I borrow?

Postby Otto Dargan » Mon Feb 25, 2019 11:21 pm

Hi Aari,

Some lenders require you to have a Power of Attorney (POA) that meets their requirements.

If you’re overseas it’s quite handy to have a trusted family member, solicitor or friend that can sign documents on your behalf.

There are other lenders that do not require you to have a POA.

However, not having a POA can be a real hassle, couriering documents overseas back and forth, you’ll then also have to visit the Australian consulate to have them witnessed.

Speak with one of our specialist mortgage brokers by calling 1300 889 743 (+61 2 9194 1700 from outside of Australia) or by filling in our free assessment form to to find out if you qualify for a home loan.

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


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