Can a Brit Get A Buy To Let Mortgage In Australia?

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Sanadis
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Joined: Tue Mar 27, 2018 1:53 pm

Can a Brit Get A Buy To Let Mortgage In Australia?

Postby Sanadis » Fri Jul 13, 2018 1:53 pm

Hi Home Loan Experts.

I’m a UK citizen from Liverpool and working as an associate professor at the University of Liverpool for the last six years. I’ve been to Australia last year and fell in love with the place. I want to invest in a property in Melbourne. I’m looking in the range of £600,000 and have savings to contribute to the purchase. I was wondering are Brits allowed a buy to let mortgage in Australia? I have never bought property overseas, so I am interested in knowing how to process works and how to go about doing this.

Hope to hear from you soon.

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Otto Dargan
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Re: Can a Brit Get A Buy To Let Mortgage In Australia?

Postby Otto Dargan » Fri Jul 13, 2018 2:40 pm

Yes, citizens from the United Kingdom (UK) are eligible to purchase a home in Australia. Buy to let mortgages are known as investment home loans in Australia.

You’ll be considered as a foreign investor when buying a property in a country you’re not living in. You can find out our foreign investor page and get more information.

Getting a home loan in Australia is very similar to getting a loan in the UK. British citizens face restrictions from Australian lenders and the Foreign Investment Review Board (FIRB).

These guidelines are required for non-resident or temporary visa holders:
  • The property you purchase must be newly built. i.e. no one has lived there before.
  • Australian Lenders will only lend a max of 80% LTV or LVR (Loan to Value Ratio in Australia). This means you will require at least a 20% deposit plus extra funds for stamp duty.
  • Australian banks prefer properties located in major cities and their surrounding suburbs.
  • You’re legally required to get approval from FIRB to buy a property in Australia.
By getting pre-approval first, you can make an offer on a property with confidence and avoid losing your deposit should you be knocked back for a buy to let mortgage. You can learn more about pre-approval here.

Buying a property as a foreign investor for the first time can be very confusing.

You can call us on +61 2 9194 1700 or simply fill in our free assessment form and we can help you apply for a loan with an Australian bank.

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

Sanadis
Posts: 9
Joined: Tue Mar 27, 2018 1:53 pm

Re: Can a Brit Get A Buy To Let Mortgage In Australia?

Postby Sanadis » Fri Jul 13, 2018 5:13 pm

I can contribute 20% deposit. Can you let me know the costs apart from this to complete the purchase? Will banks accept all types of properties?

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Otto Dargan
Mortgage Specialist
Posts: 7021
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can a Brit Get A Buy To Let Mortgage In Australia?

Postby Otto Dargan » Fri Jul 13, 2018 6:23 pm

Hi Sanadis,

Foreign citizens who want to buy or invest in residential property in Victoria (VIC), New South Wales (NSW), Queensland (QLD), South Australia (SA) and Western Australia (WA) will need to pay a stamp duty levy and, in some states, a land tax surcharge.

You can try our foreign citizen stamp duty calculator to find out how much extra you’ll pay in stamp duty as a foreigner.

For a GBP 600,000 property, you have to shed out $136,200.90 in stamp duty on property, mortgage registration, and transfer fee excluding conveyancing costs and FIRB approval.

There are following restrictions in the property type for foreign investors:
  • The investment property must be a new property or vacant land to build a new property.
  • You can’t buy an established dwelling as an investment property.
  • You can buy a new property in your name and rent it out to their child that is on a temporary visa.
Please enquire online or call us on +61 2 9194 1700 to speak to a mortgage broker who specialises in finding home loans for foreign citizens.

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

Sanadis
Posts: 9
Joined: Tue Mar 27, 2018 1:53 pm

Re: Can a Brit Get A Buy To Let Mortgage In Australia?

Postby Sanadis » Fri Jul 13, 2018 10:36 pm

Thanks for the prompt replies, Otto. I’ll call you guys coming week and see how we can move ahead with this. Cheers :)


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