How much can we borrow based on my foreign GBP income?

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Stewie
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Joined: Tue Mar 12, 2019 12:16 pm

How much can we borrow based on my foreign GBP income?

Postby Stewie » Tue Mar 12, 2019 12:17 pm

Hi, my wife and kids will be moving back to Australia in a year, we’re both Australian citizens. I’ll be staying and keeping my UK job. I just would like to know how much can we borrow for a home to live in based on my foreign GBP income? I make £100k a year and we’ll have a deposit of around $80k.

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Otto Dargan
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Re: How much can we borrow based on my foreign GBP income?

Postby Otto Dargan » Tue Mar 12, 2019 1:18 pm

Hello Stewie. Welcome to the forums.

Assessing the borrowing capacity of Australian expats earning income in a foreign currency can be quite complicated and will vary between lenders.

Most lenders 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.

Most lenders will restrict your borrowing power to 80% of the property value but some lenders will allow you to borrow up to 90% of the Loan To Value Ratio (LVR).

Give us a call on 1300 889 743 or fill in our free assessment form to find out how much you can borrow as an Australian expat.

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

Stewie
Posts: 3
Joined: Tue Mar 12, 2019 12:16 pm

Re: How much can we borrow based on my foreign GBP income?

Postby Stewie » Tue Mar 12, 2019 2:15 pm

Your website says we’ll be needing a 10% deposit plus extra funds. We have the deposit but what are these extra funds you’re referring to?

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Otto Dargan
Mortgage Specialist
Posts: 7391
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: How much can we borrow based on my foreign GBP income?

Postby Otto Dargan » Tue Mar 12, 2019 3:21 pm

Hi Stewie,

That’s correct, Australians living abroad typically need a 10% deposit plus extra funds to cover property purchasing costs such as:

You can try ourproperty purchasing costs calculator to get more accurate figures for the location you want to buy in.

The deposits usually need to be in the form of genuine savings.

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

Stewie
Posts: 3
Joined: Tue Mar 12, 2019 12:16 pm

Re: How much can we borrow based on my foreign GBP income?

Postby Stewie » Tue Mar 12, 2019 5:11 pm

“Australian tax rates even if you are living in a country without an income tax.” Can you elaborate on this?

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

Re: How much can we borrow based on my foreign GBP income?

Postby Otto Dargan » Tue Mar 12, 2019 6:25 pm

Hi Stewie,

Some lenders will use Australian tax rates when assessing your income rather than the tax rate of the country that you’re living in e.g. British tax rates.

Australian tax rates are some of the highest in the world and this severely limits the amount you can borrow. Luckily, there are some lenders that will use the foreign tax rates allowing you to borrow more.

The Great Britain Pound Sterling (GBP) is one of those currencies.

Give us a call on 1300 889 743 or fill in our free assessment form to find out how much you can borrow when applying for an Australian expat mortgage.

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


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