Hi home loan experts!
I am a commercial diver in Sydney and have an annual income of $77,000. I am in Australia on a work visa and I would like to live in Sydney for the foreseeable future. I am currently renting and I want to buy a house of my own. There is a nice two bedroom boutique apartment on Pitt Street that I really like to buy. The place has an asking price of $840,000 and I would like to borrow as much as possible for that.
However, I am not sure how much banks may be willing to lend to me since I am not an Australian. I would be grateful if someone could give me an idea about that.
How much can a non-Australian borrow for a property?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much can a non-Australian borrow for a property?
Hi and welcome to the forums thomas.
It is possible for a non-Australian to be approved for a home loan in Australia. You can use the Non-Resident Mortgage Calculator to work out if you are elegible to get a home loan in Australia. The calculator asks you to enter relevant details including:
Otto
It is possible for a non-Australian to be approved for a home loan in Australia. You can use the Non-Resident Mortgage Calculator to work out if you are elegible to get a home loan in Australia. The calculator asks you to enter relevant details including:
- Whether you are living in Australia.
- Your visa status.
- If you are purchasing or refinancing a property.
- How you will use the property.
- The value of the property.
- Reduce your loan amount: Lenders consider loans with a high loan to value ratio (LVR) to be risky. If you are able to reduce the LVR to 80% or less then you may always be able to find a lender who will approve your loan.
- Have genuine savings: Lenders in Australia prefer borrowers to have saved at least 5% of the purchase price in genuine savings.
Otto
Re: How much can a non-Australian borrow for a property?
Thank you for the reply, Otto. However, I do not have any genuine savings. Can I still qualify for a high LVR home loan?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much can a non-Australian borrow for a property?
Hi thomas,
Most lenders in Australia now require a borrower buying a property to have 5% of the purchase price in genuine savings that you have saved yourself over time. However, it may be possible to get a home loan without genuine savings.
It may be possible to borrow a high Loan to Value Ratio (LVR) even without genuine savings. We work with lenders who may be able to approve the following types of loan to borrowers without genuine savings:
Cheers,
Otto
Most lenders in Australia now require a borrower buying a property to have 5% of the purchase price in genuine savings that you have saved yourself over time. However, it may be possible to get a home loan without genuine savings.
It may be possible to borrow a high Loan to Value Ratio (LVR) even without genuine savings. We work with lenders who may be able to approve the following types of loan to borrowers without genuine savings:
- 90% home loans: You may be able to borrow 90% LVR from three different borrowers.
- 95% home loans: One of our lender may approve a loan for 95% of the property value irrespective of the source of your deposit.
- You have a stable employment and have been working in the same job for at least six months and in the same industry for two years.
- You have a good credit history.
- You have been making your credit cards, rent and loan repayments on time.
- You are able to afford the loan.
- You are in a strong financial position.
Cheers,
Otto
Re: How much can a non-Australian borrow for a property?
Thank you for the explanation. It seems the issues behind genuine savings policy are complex. I will call you and talk to you in person to discuss my situation.
Re: How much can a non-Australian borrow for a property?
Hi there, I am also a non-resident looking for a home loan. I am unsure what genuine savings really means. Could anyone explain that to me?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: How much can a non-Australian borrow for a property?
Hi appleboy,
Different lenders may have different criteria on what they consider to be genuine savings. Most of the following may be considered as genuine savings by the lenders:
Otto
Different lenders may have different criteria on what they consider to be genuine savings. Most of the following may be considered as genuine savings by the lenders:
- Funds held in a savings account for three to six months.
- Money that you have saved over the last three months.
- Money held in a term deposit for more than three months.
- Equity in another property (only considered by some lenders).
- Proceeds from the sale of a property (only considered by some lenders).
- Shares you have held for over three months.
- The rent you have paid in the last 12 months is considered as genuine savings by three of our lenders.
- A gift that you have received from a family member.
- Advances taken from your wages.
- Commission from an employer.
- Funds that you have inherited.
- Personal loans or other borrowings.
- Builder discount or finance.
- Vendor discount or finance.
- Windfall gains.
- One-off government payments such as tax refunds.
Otto
Re: How much can a non-Australian borrow for a property?
Thanks to your reply, I now understand what genuine savings is. Cheers!