Getting a home loan with a foreign citizen

Any general questions you might have in regards to loans and finance.
Shane1979
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Joined: Wed Jan 23, 2019 6:30 pm

Getting a home loan with a foreign citizen

Postby Shane1979 » Wed Jan 23, 2019 6:32 pm

Hi, I’m looking to buy an investment property in Melbourne, either renting it out long-term or a short-term rental/Airbnb. I am an Australian citizen working and living in the U.K. for the last decade. I am married to a British citizen and she makes more than I do. Will the income of my spouse be considered when banks assess our borrowing capacity for an investment property?

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Otto Dargan
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Location: Sydney, Australia
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Re: Getting a home loan with a foreign citizen

Postby Otto Dargan » Wed Jan 23, 2019 6:55 pm

Hello Shane. Welcome to the forums.

Being married to a foreign citizen will affect how banks assess your application. Most lenders will ignore the income of your partner if they are not an Australian citizen or an Australian permanent resident. However, this is a grey area of policy and we’ve helped many clients use their spouse's income to improve their home loan borrowing power.

A lender may consider your spouse’s income if:

  • They have a valid Australian visa.
  • They’re living in Australia.
  • They have ties to Australia such as family or close relatives.
  • You’ve been married for over two years.
  • You have children together.
  • You’re the main income earner.

It’s best to call us on 1300 889 743 (+61 2 9194 1700 from outside of Australia) or fill in our free assessment form so we can determine which lenders take a more common sense approach to helping borrowers who are applying with a foreign partner.

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

Shane1979
Posts: 3
Joined: Wed Jan 23, 2019 6:30 pm

Re: Getting a home loan with a foreign citizen

Postby Shane1979 » Wed Jan 23, 2019 7:15 pm

Ok sounds good. Will I be paying a higher interest rate then?

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Otto Dargan
Mortgage Specialist
Posts: 7713
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Getting a home loan with a foreign citizen

Postby Otto Dargan » Wed Jan 23, 2019 7:46 pm

Hi Shane,

Some banks do not allow citizens living abroad to qualify for discounted home loans.

As a specialist mortgage broker, we can often negotiate interest rates that are substantially below the Bank Standard Variable (BSV) rate with some of our lenders.

Unless you cannot provide evidence of your income, you should not pay a higher interest rate for an Australian mortgage.

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

Shane1979
Posts: 3
Joined: Wed Jan 23, 2019 6:30 pm

Re: Getting a home loan with a foreign citizen

Postby Shane1979 » Thu Jan 24, 2019 1:24 am

How much deposit do I need to provide? Can I use the equity from another Australian property?

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Otto Dargan
Mortgage Specialist
Posts: 7713
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Getting a home loan with a foreign citizen

Postby Otto Dargan » Thu Jan 24, 2019 1:58 am

Hi Shane,

Australians living abroad usually have to provide 10% deposit and additional funds to cover property purchasing costs including stamp duty, legal fees, mortgage setup costs, and LMI.


We are specialist in Australian expats home loans.
Call us on 1300 889 743 or complete our free assessment form.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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