How much can a Japanese borrow for a house in Australia?

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totoro
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Joined: Wed Jun 17, 2009 4:58 pm

How much can a Japanese borrow for a house in Australia?

Post by totoro »

Hi home loan experts!

I am a Japanese and I want to buy a property in Australia. However, I do not know of any regulations and policies that applies to us, or even if foreigners are allowed to buy a property in Australia. One of my friends suggested me to post my query on this forum, and here I am.

So, could anyone tell me more on the topic? How much may I be able to borrow for buying a house in Australia?

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Otto Dargan
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Re: How much can a Japanese borrow for a house in Australia?

Post by Otto Dargan »

Hi and welcome to the forums totoro.

It is possible for foreign nationals to buy a property in Australia. There may be different provisions that apply when you are buying a property depending on whether you are:
  • An Australian permanent resident,
  • A citizen of New Zealand,
  • A foreign national in Australia on a working visa,
  • A foreign national in Australia on a temporary visa,
  • A foreign national in Australia on a spouse visa, or
  • A foreign national in Australia on a student visa.
The amount that you may be able to borrow also depends on your status. Generally, foreign nationals may be allowed to borrow up to 80% of the property value. It may be possible for some to borrow up to 95% Loan to Value Ratio (LVR) depending onwhere you are currently living, along with the type of visa that you may hold.

As a foreigner buying an Australian property, it is highly likely that you are required to get an approval from the Foreign Investment Review Board (FIRB). You may be exempt from this requirement if you are a permanent resident or buying with your spouse who is an Australian citizen or permanent resident.

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

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totoro
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Re: How much can a Japanese borrow for a house in Australia?

Post by totoro »

Thank you for the information, Otto. I know about the various features of mortgage in my country, but I am not sure if the mortgage providers in Australia provide the same features on a loan. Could you tell me more about that too?

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Otto Dargan
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Re: How much can a Japanese borrow for a house in Australia?

Post by Otto Dargan »

Hi totoro,

Australian lenders may offer the same interest rates and home loan features for foreign nationals as to Australian borrowers. Some of the main features that you should know about are as follows:
  • The minimum loan size is $100,000.
  • There is no maximum loan size.
  • The maximum LVR you may be able to borrow depends on your specific circumstances.
  • You may be allowed to make interest only repayments for 15 years.
  • You may be offered a fixed rate or up to 12 years.
  • The maximum loan term is 30 years.
  • Professional package discounts may be available.
  • Loans for construction are available.
  • You may be allowed to make extra repayments.
  • Redraw facilities may be available.
  • It is possible to have 100% offset accounts.
  • Internet banking facilities are available.
  • Phone banking, although available, might not work for international calls.
It should be noted that every lender may not offer all these features. You may be able to find a lender who meets your specific requirements.

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

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totoro
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Joined: Wed Jun 17, 2009 4:58 pm

Re: How much can a Japanese borrow for a house in Australia?

Post by totoro »

Thank you for taking the time to respond to my queries. Your answers were really helpful to me. I will call you as soon as I make the necessary preparations after talking to my accountant.

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arnie
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Re: How much can a Japanese borrow for a house in Australia?

Post by arnie »

Hi everyone,

I am also thinking of buying a house. But I didn’t know about FIRB approval. Could someone tell me more about this?

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Otto Dargan
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Re: How much can a Japanese borrow for a house in Australia?

Post by Otto Dargan »

Hi arnie,

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.

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

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arnie
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Joined: Thu Jun 27, 2013 3:47 pm

Re: How much can a Japanese borrow for a house in Australia?

Post by arnie »

I was worried that my application would get caught in red tape. If getting the approval takes just 15 days then it may not be much of a hassle. Thanks.

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