Re: Help me figure out how Australian lenders will assess my foreign income
Posted: Fri May 03, 2019 12:33 pm
Hello Zheng. Welcome to the forums.
For non-resident foreign investors, calculating the serviceability can be a real challenge. You need to take into account:
Our mortgage brokers specialise in foreigner mortgage.
Give us a call on 1300 889 743 or fill in our free assessment form to find out how much you can borrow with a non-resident home loan.
Cheers,
For non-resident foreign investors, calculating the serviceability can be a real challenge. You need to take into account:
- Currency: Singaporean dollar (SGD) is one of the preferred currencies accepted by Australian banks and lenders.
- Income shading: Different lenders have different percentages of the overseas income they’re willing to use for serviceability. Most lenders use between 60% to 90% of your overseas income.
- Australian tax rates: Australian tax rates apply even if you’re living in a country with low or no income tax (some exceptions).
- Stronger serviceability requirements: Lenders use loaded repayments on foreign loans. That means for any foreign debts you may have they will assess it using a higher interest rate than the one you’re paying. Lenders generally ignore foreign rental income.
- No negative gearing benefits: Negative gearing benefits are ignored for an investor who is overseas.
80-85% of the rental income from the property you’re buying.
Our mortgage brokers specialise in foreigner mortgage.
Give us a call on 1300 889 743 or fill in our free assessment form to find out how much you can borrow with a non-resident home loan.
Cheers,