Can a foreigner buy a property in Australia?

Any general questions you might have in regards to loans and finance.
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thomas
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Joined: Wed Jun 24, 2009 4:16 pm

Can a foreigner buy a property in Australia?

Post by thomas »

Hi,

I’m from India and I recently learned about foreign property investment in Australia. As a businessman, I’d love the opportunity to buy a property in Australia. However, since I’m new to the Australian mortgage industry, I have limited knowledge to rely on.

Is it possible for foreigners to borrow money to buy property in Australia? And if I can then how much will I be able to borrow?

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Otto Dargan
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Re: Can a foreigner buy a property in Australia?

Post by Otto Dargan »

Hi and welcome to the forums thomas.

Financial institutions in Australia accept mortgage applications from foreigners who want to buy property in Australia. As a foreigner, you may be able to borrow 80% of the value of the property that you’re looking to buy.
  • Foreign citizens living outside Australia: You may be able to borrow up to 80% of the property value.
  • Foreign citizens living in Australia: You may refer to our temporary residents page for more information.
  • Foreign citizens who cannot prove their income: You may be restricted to borrowing only up to 75% of the property value or less if the evidence of your income is insufficient or your documents are in a language other than English.
  • Foreign citizens married to an Australian citizen: You may qualify to borrow 90%, or even 95% of the property value, if your spouse is an Australian citizen.
Some lenders may offer the same competitive professional packages and basic loan discounts which are offered to Australian citizens. And if you are willing, we may be able to help you secure a better deal on the mortgage interest rates advertised by lenders.

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

thomas
Posts: 64
Joined: Wed Jun 24, 2009 4:16 pm

Re: Can a foreigner buy a property in Australia?

Post by thomas »

That sounds wonderful! I would appreciate the help. But how do I apply for the loan? Can you explain to me how the loan application process works for foreigners?

Regards.

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Otto Dargan
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Location: Sydney, Australia
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Re: Can a foreigner buy a property in Australia?

Post by Otto Dargan »

Hi thomas,

It is relatively easy to apply for a loan as a foreigner if you apply with a lender who commonly works with foreigners. You may take help from an expert mortgage broker to find a suitable lender, and to apply for a loan.

Before your loan can be approved, however, you will need FIRB approval from the Australian government. The approval is required for foreigners who are not New Zealand citizens or Australian permanent residents. After receiving the approval, you will be able to buy:
  • Investment properties.
  • Home (owner occupied), if you are a temporary resident.
  • Vacant land.
To know more about what you have to do, 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

thomas
Posts: 64
Joined: Wed Jun 24, 2009 4:16 pm

Re: Can a foreigner buy a property in Australia?

Post by thomas »

Thanks! I was able to get a lot of information from your reply. I will talk to my family and give you a call personally if we decide to buy the property.

Thank you very much, Otto.

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twoba
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Joined: Mon Jun 15, 2009 12:11 pm

Re: Can a foreigner buy a property in Australia?

Post by twoba »

Hi!

I’m from the Philippines and I’m very interested in buying a real estate in Australia. I have a house worth $340,000 here in the Philippines itself. I’ve learned that I need FIRB approval but I don’t have a clue about what an FIRB approval is and why I need it!

Can someone please explain its purpose to me?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can a foreigner buy a property in Australia?

Post by Otto Dargan »

Hi twoba,

The FIRB is a government body which assesses applications from foreign investors. In order to buy property in Australia for residential or investment purposes, you may be required to obtain FIRB approval.

It would be wiser to refer to the FIRB guidelines before you begin searching for an Australian property, considering that you cannot apply for FIRB pre-approval. You can, however, apply for the approval only after you have found a particular property to purchase.

As long as you follow the FIRB guidelines, your investment will likely be approved. After you find a property, you may sign the contract of sale with a condition which will allow you to back out of the purchase in case FIRB approval is not granted. You can also get a pre-approval before you find a mortgage.

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

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twoba
Posts: 50
Joined: Mon Jun 15, 2009 12:11 pm

Re: Can a foreigner buy a property in Australia?

Post by twoba »

You have my thanks, Otto. I’ll be contacting you personally in the future for any issue regarding my situation.

I appreciate that you took your time to reply. Thank you.

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