Can I Get A Buy To Let Mortgage In Australia From The UK?

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

Can I Get A Buy To Let Mortgage In Australia From The UK?

Post by thomas »

Hi There,

I am a citizen of the United Kingdom and am looking to obtain a buy to let mortgage in Australia. I have never bought overseas before so I am interested in knowing how to process works and how to go about doing this.

I will be in Australia looking at houses to buy in early 2013. I will be looking in the Sydney city area. I own 3 properties here in the UK and have plenty of savings to contribute to the purchase.

What I would like to know is:
a) Is it possible for me to buy a home in Australia even though I am a citizen of the UK?
b) How would this type of loan work?
c) Is there a restriction on the amount the Australian banks will lend to me?
d) Is there any other information that is essential for me to know?

Any advice you can offer would be great!

Thanks

Tom.

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I Get A Buy To Let Mortgage In Australia From The UK

Post by Otto Dargan »

Hi Thomas,

Being from the UK I can confirm you are eligible to purchase a home in Australia.

Buy to let mortgages in Australia are known as investment home loans. When applying for a mortgage in a country you are not living in is known as being a foreign investor. Our foreign investor page will be handy for you to read.

Getting a loan in Australia is very similar to getting a loan in a country you live in. The only difference is there are some guidelines and restrictions in place for foreign investor loans. These restrictions come from both the Foreign Investment Review Board FIRB and the banks of Australia.

Guidelines:
  • The property you purchase must be newly built. I.e. No one has lived there before.
  • You will need to have at least a 20% deposit plus extra funds for stamp duty. This is because Australian Lenders will only lend a max of 80% of the property value.
  • Australian banks also favour properties that are located in major cities and their surrounding suburbs.
Obtaining a pre-approval before coming to look at properties in Australia would be a great advantage! It will allow a shorter loan approval time after finding a property. To find out more about pre-approval click here.

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

Speak to one of our mortgage brokers to discuss your situation and options in more depth. Call 1300 889 743 or enquire online.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

daniel33
Posts: 1
Joined: Tue Apr 17, 2012 10:39 pm

Re: Can I Get A Buy To Let Mortgage In Australia From The UK

Post by daniel33 »

Thanks for that, I'm in the same position as Thomas and was wondering the same thing.

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I Get A Buy To Let Mortgage In Australia From The UK

Post by Otto Dargan »

Hi Daniel,

I am glad our information has helped you.

If you would like to discuss your situations in more details please feel free to contact me 1300 889 743.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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