Husband is a foreigner, can we still apply for a mortgage in Australia?

Any general questions you might have in regards to loans and finance.
Theresa
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Joined: Fri Oct 04, 2019 1:58 pm

Husband is a foreigner, can we still apply for a mortgage in Australia?

Postby Theresa » Fri Oct 04, 2019 1:59 pm

My husband and I will be moving to Australia next year. Both of us are living in Britain right now. I was born in Australia and I can renew my passport if that helps. Is there anything we should be careful about when applying for a loan as my husband is from Britain?

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Otto Dargan
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Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Postby Otto Dargan » Fri Oct 04, 2019 2:34 pm

Hello Samantha. Welcome to the forums.

You and your husband can apply for a partner visa mortgage and might even be able to borrow up to 95% of the property value if you fulfil the following lending criteria:
  • The person on the temporary spouse visa must be buying the property with an Australian citizen.
  • The relationship is legitimate and continuing and may reject applications if you have not been together for a significant time period.
  • Some lenders require couples to purchase a property as ‘joint tenants,’ not ‘tenants in common '. However, not all lenders have this policy and may allow other legal ownership structures. If you are purchasing the property with your Australian citizen spouse, as ‘joint tenants’, then you will not be required to seek Foreign Investment Review Board (FIRB) approval.
It is also important that you have a good credit history, a solid income and a stable employment situation.

If you do not meet any of the criteria, then your mortgage will be limited to 80% of the property value.

If you are borrowing over 80%, then you will have to pay Lenders Mortgage Insurance (LMI).

Please go through our buying property in Australia for non-resident for more information.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a temporary resident home loan.

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

Theresa
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Joined: Fri Oct 04, 2019 1:58 pm

Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Postby Theresa » Fri Oct 04, 2019 2:42 pm

Thanks for the information. Will the banks assess my husband’s income as well?

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Otto Dargan
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Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Postby Otto Dargan » Fri Oct 04, 2019 2:57 pm

Hi Samantha,

The Great British Pound (GBP) is one of the acceptable foreign currencies by banks and lenders in Australia.

Banks will often assess his base income by converting it to Australian dollars, and then reduce it by 10% as a buffer for any currency fluctuations. Some lenders will only use 80% of his income to allow for exchange rate fluctuations.

Depending on the lender, the following documents are required to prove foreign income:
  • A letter from your employer,
  • A copy of your employment contract,
  • Two payslips,
  • Three months of bank statements showing your salary being deposited into your account, OR
  • Tax returns for the last financial year.
If you want to prove a strong case for the bank to assess your husband's income, they will look at:
  • Whether he as a valid temporary visa for Australia.
  • If there are family ties to Australia.
  • If you and your husband have children together
  • If you are married or in a de facto relationship for more than two years.
  • You are an Australian citizen and the main income earner.

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

Theresa
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Joined: Fri Oct 04, 2019 1:58 pm

Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Postby Theresa » Fri Oct 04, 2019 3:42 pm

That’s great to know. What's the situation like for foreigner stamp duty? Do we have to pay for it?

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Otto Dargan
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Re: Husband is a foreigner, can we still apply for a mortgage in Australia?

Postby Otto Dargan » Fri Oct 04, 2019 4:10 pm

Hi Samantha,

Generally speaking, if you’re buying a property in the name of your partner that is either an Australian citizen, permanent resident or 444 visa holder, the stamp duty surcharge doesn’t apply.

In New South Wales specifically, if you’ve been living in Australia on a partner visa (subclass 309 or 820) for over 200 days, the surcharge doesn’t apply.

The other way to avoid the surcharge is to buy in the Northern Territory because they don’t apply a stamp duty and/or land tax surcharge.
For more information, you can have a look at our foreigner citizen stamp duty page.

Give us a call on 1300 889 743 or fill in our free assessment form 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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