How does a foreigner get a mortgage in Australia?

Any general questions you might have in regards to loans and finance.
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geebee333
Posts: 39
Joined: Wed Jan 02, 2013 11:05 am

How does a foreigner get a mortgage in Australia?

Post by geebee333 »

Hello home loan forum!

I have been thinking about buying a house in Australia as I have come to know that it will likely be a great investment. However, I am not sure how I should go ahead with the process. I am quite familiar to the process of getting a mortgage in the US, but I do not know if it is the same in Australia.

I would be extremely grateful for any information about this. Could anyone help me out here?

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Otto Dargan
Mortgage Specialist
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Re: How does a foreigner get a mortgage in Australia?

Post by Otto Dargan »

Hi and welcome to the forums geebee333.

There may be differences in the process of getting a mortgage in Australia as opposed to that in other countries. It may be better for you to contact an experienced mortgage broker to assist you in the process, primarily because there are more than 300 banks and lenders who offer more than 1,000 different loan products.

If you contact a bank yourself, you will only get info on the loan products that the specific bank offers and probably miss out on special offers that may suit your needs better. On the other hand mortgage brokers, by the nature of their jobs, have up to date and comprehensive knowledge on the many different types of loan products and may help you make a more informed decision.

On top of that, most of the mortgage brokers provide their services free of charge. Due to this, mortgage brokers are sought out not only by foreign nationals but also by Australians who are applying for a home loan.

Once your loan is set up, it is very easy for you to manage your loan. This is due to the various features of getting a mortgage in Australia:
  • You can make use of internet banking to manage your loan.
  • You are usually allowed to make unlimited additional repayments unless you are getting a fixed rate mortgage.
  • You may normally be allowed to redraw your additional repayments.
  • Lenders may have specialist call centres or credit teams exclusively to assist foreigners with their loans.
  • Some lenders offer a cheque account, credit card and special discounts on loan packages.
  • Some lenders have fewer limitations and flexible lending policies for foreigners abroad who are seeking to buy a property in Australia.
Another thing you should know is that foreigners who want to buy a property need to get an approval from the Foreign Investment Review Board (FIRB). You are usually not allowed to buy real estate in Australia without getting the approval.

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

geebee333
Posts: 39
Joined: Wed Jan 02, 2013 11:05 am

Re: How does a foreigner get a mortgage in Australia?

Post by geebee333 »

What is this FIRB and why do I need an approval? Could you please tell me more about that?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How does a foreigner get a mortgage in Australia?

Post by Otto Dargan »

Hi geebee333,

Foreign Investment Review Board (FIRB) approval is required for foreigners who want to buy a property in Australia. FIRB is a regulatory body set up by the Australian government to monitor foreign investment so that real estate prices do not spiral out of control. It also seeks to ensure that the investment is in the national interests of Australia.

The following groups of people require FIRB approval in order to buy a property in Australia:
  • Foreigners on a temporary visa in Australia.
  • Foreign investors.
However, you will not require an approval if you are:
  • A citizen or permanent resident of Australia.
  • Australian expat living overseas.
  • A foreigner married to an Australian citizen and buying together with your partner as joint tenants.
  • A New Zealand citizen.
Getting FIRB approval is a simple and fast process. There are set guidelines provided on their website and if you meet those then you may be granted approval. Getting FIRB approval usually takes about 15 days.

If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.

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

geebee333
Posts: 39
Joined: Wed Jan 02, 2013 11:05 am

Re: How does a foreigner get a mortgage in Australia?

Post by geebee333 »

Thank you for your informative replies. I will definitely call you guys soon in order to start my home loan application process in Australia.

Bruce
Posts: 34
Joined: Thu Jun 20, 2013 6:21 pm

Re: How does a foreigner get a mortgage in Australia?

Post by Bruce »

Hello everyone!

I want to get a mortgage in Australia. How does a foreigner prove his income while applying for a mortgage with an Australian bank?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: How does a foreigner get a mortgage in Australia?

Post by Otto Dargan »

Hi Bruce,

You need to provide one or two of the following documents to lenders as proof of your income:
  • A letter from your employer.
  • A copy of employment contract.
  • Two recent payslips.
  • Bank statements showing your salary being deposited into your account.
  • Tax returns from the last year.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Bruce
Posts: 34
Joined: Thu Jun 20, 2013 6:21 pm

Re: How does a foreigner get a mortgage in Australia?

Post by Bruce »

Thank you for the prompt reply, Otto. I will need to talk to my employer about this.

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