Australian investment loans for a Singapore citizen?

Learn more about investing in Australian real estate & share your ideas with other investors.
Post Reply
Cindy Woo
Posts: 47
Joined: Thu Jun 27, 2013 4:47 pm

Australian investment loans for a Singapore citizen?

Post by Cindy Woo »

Hello Home Loan Experts,

This is my first time in this forum. I live in Singapore and I want to invest in a new property which is going to be built soon.

I wanted to know if you can help me with investment loans for foreigners? Particularly, I want to know what will the banks want to see as proof of my income?

If you could share any ideas, that would be great.

Thank you.

Cindy Woo :)

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

Re: Australian investment loans for a Singapore citizen?

Post by Otto Dargan »

Hello Cindy Woo,

Welcome!

Yes, we know lenders who can help you with investment loan for foreigners. To prove your foreign income most banks/lenders will ask for your financial documents and these have to be in English language.

If they are issued in your national language then you will need an interpreter’s certificate which translates all of your documents into English and assures they are true. You can get interpreter’s certificate from the local Australian consulate.

You can either translate the documents from a certified organisation, approved Australian translators or any qualified translator from your country.

Note: You will also need approval from Foreign Investment Review Board (FIRB) in order to invest in Australian properties.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Cindy Woo
Posts: 47
Joined: Thu Jun 27, 2013 4:47 pm

Re: Australian investment loans for a Singapore citizen?

Post by Cindy Woo »

FIRB approval? What is that? I have no idea how to get that done.

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

Re: Australian investment loans for a Singapore citizen?

Post by Otto Dargan »

FIRB is an Australian government body that evaluates direct investment requests from foreign nationals. In most cases, FIRB will approve applicants to invest in a vacant land provided you start construction on that land within 24 months.

There is nothing to worry about. If you meet their criteria then you can be granted permission to invest.

You can visit their official website, check whether you meet the criteria and even apply online.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Cindy Woo
Posts: 47
Joined: Thu Jun 27, 2013 4:47 pm

Re: Australian investment loans for a Singapore citizen?

Post by Cindy Woo »

Thanks Otto. I will definitely visit the website and check whether I meet the criteria or not.

I would like to ask, one more thing. What documents will the lenders want to look at? If I had an idea then I would like to start preparing now.

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

Re: Australian investment loans for a Singapore citizen?

Post by Otto Dargan »

Each lender has different policies regarding proof of income they would want to see and according to the type of your employment.

However, I think these are the common ones:

If you are employed then you must submit,
  • A letter from your employer to certify your employment.
  • A copy of your employment contract
  • Two payslips
  • Three months of bank statements showing your salary being deposited into your account.
  • OR tax returns for the last financial year.
If you are self employed then you can submit your two years of tax returns or an accountant’s verification letter in case you cannot submit your tax returns.

Again, all of the documents must be in English. What you need to submit really depends on the type of lender you apply with.

I suggest you talk to one of our brokers who can give you a more accurate and detailed answer or call us on 1300 889 743 or simply enquire online.

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

Cindy Woo
Posts: 47
Joined: Thu Jun 27, 2013 4:47 pm

Re: Australian investment loans for a Singapore citizen?

Post by Cindy Woo »

Thank you so much Otto. This has truly been helpful. I will get back on this thread if I want to know more.

Goodbye.

Pooh_Bear
Posts: 45
Joined: Thu Jun 27, 2013 5:00 pm

Re: Australian investment loans for a Singapore citizen?

Post by Pooh_Bear »

Hi Otto and Cindy Woo,

I have a friend living in the US who wanted to know more about foreign investment in Australia. I found this thread while Googling and jumped at a chance to ask a question.

I understood the part about FIRB approval from the above answers. I wanted to know if you had any idea regarding how much can a foreigner borrow for investment loans?

Thanks guys! :D

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

Re: Australian investment loans for a Singapore citizen?

Post by Otto Dargan »

Hi Pooh_Bear,

Lenders will generally be comfortable with lending up to 80% value of the property (or LTV as it is called in America) for foreign citizens.

If a loan is above 80%, this I considered risky by most lenders and you would have to pay Lenders Mortgage Insurance (LMI). This is a once off payment that acts as a safeguard for the lenders if you default.

Another point to keep in mind is borrowing above 80% can decrease the chances of a loan approval as well.

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

Pooh_Bear
Posts: 45
Joined: Thu Jun 27, 2013 5:00 pm

Re: Australian investment loans for a Singapore citizen?

Post by Pooh_Bear »

Thanks for the information mate. Another quick question, if he were to apply here for an investment loan. Will he get discounts and stuffs like that with the loan?

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

Re: Australian investment loans for a Singapore citizen?

Post by Otto Dargan »

Sure. Some of the lenders we know offer same competitive professional packages and mortgage discounts which is offered to Australians.

Why don’t you check out our foreign citizen mortgage page and get back to us.

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

Post Reply