How Does An ANZ Expat Mortgage Compare?
As an Australian expat, you have a lot of things to think about when it comes to financing your investment property back home. One of the biggest decisions is finding the right home loan. With so many options available, it can be tough to know where to start. ANZ is one of the big four banks in Australia and is open to lending to expats. While the bank offers a wide range of products and features to choose from, its expat lending policy is inflexible in some ways. Listed below is all the information you need on ANZ expat lending to guide you in making an informed decision.The Good
- Offers competitive loan rates to expats when compared with other banks.
- The maximum Loan-to-Value Ratio (LVR) an expat can borrow is 80%.
- When an Australian expat is paying tax in the host country, instead of taking their gross income and applying Australian tax rates, ANZ factors in their net income while calculating their borrowing power. This benefits an expat when the host country’s tax rate is lower than in Australia.
- Expats are offered the same interest rates as onshore borrowers; no buffer is added.
- ANZ considers interest rate discount requests when the loan is processed through a mortgage broker.
- Conducts fully assessed pre-approval.
- ANZ has a dedicated team whose main job is to locate expats and offer them home loan options.
- Expat loans are made available to citizens of Australia and New Zealand.
- Home loans are primarily offered only to PAYG income-earning expats. ANZ does consider contractors, but only when they are under a single contract working for a single employer.
- Foreign business income is unacceptable.
- If expats do not have to pay tax in their host country, ANZ applies the Australian tax rate to their gross income when calculating their borrowing power. This reduces their borrowing power.
- Factors in only 75% of rental income while calculating serviceability.
- Does not offer interest-only loans to expats.
- Relies on in-house foreign exchange calculator.
- Negative gearing options are not made to expats.
- Does not accept bad credit loans.
- Does not accept Airbnb income.
- If the foreign income is taxed overseas, net income is to be used while calculating the serviceability of the loan.
- If the foreign income is not taxed overseas, gross income is to be used.
- Redraw facility
- Offset account
- Option to make extra repayments
- No set-up or ongoing fees
- Fixed-rate loan term of up to 10 years
- No change in interest rate throughout the fixed period
- Discounted interest rate without a package fee
- No set-up or ongoing fees
- Discounted interest rate
- Redraw account
- No set-up or ongoing fees
- Found the couple their top match for banks. Of the three options, they chose ANZ, as it gave the best interest rate and features. ANZ also factored in 100% of their income while servicing their loan and offered the highest LVR limit of 80% to expats, which was a plus for them.
- Filled out all the paperwork on their behalf.
- Lisa was getting a pay raise in some months, so she wanted to show that while assessing her borrowing power. But, this was against ANZ’s policy. So, our broker advised her to reduce her credit-card limit from $23,000 to $3,000 for the time being instead. This way, the couple’s combined borrowing power for the home loan increased.
- Liaised with ANZ’s team to ensure they met their Service Level Agreement (SLA) for each step in the home loan application process.
- Gave the couple frequent updates on any developments in the loan process.
The Bad
Summarising ANZ’s Foreign Income Assessment Policy
What Are The Different Types Of Loans Available To Expats From ANZ?
Home loans are generally of two types: owner-occupier and investment property. While borrowing for an owner-occupier home loan, the borrower must declare that the property will be their primary residence. As expats are Australians living overseas, they do not qualify for an owner-occupier home loan. So, Most Australian expats are keen on getting an investment property loan and expanding their portfolio to earn a high passive income. Some of the common types of expat investment home loans ANZ provides are: The bank does not offer any home loan packages, but it gives you a choice to add extra features to any loan product for a price. So, instead of paying a package fee for multiple features, you get the flexibility to pay for only the features you want. Below are ANZ’s most popular investment home loan products for expats.ANZ Standard Variable Residential Investment Loan
This is ANZ’s most flexible home loan product. Features include:ANZ Fixed Residential Investment Loan
This product is a standard fixed-rate loan. You can add variable-loan features to it by paying a certain amount. Features include:ANZ Simplicity PLUS Residential Investment Loan
This is ANZ’s basic variable-rate home loan product. Features include:ANZ Property Investment Loan – Client Story
Matthew, NSW
Goal
To purchase an investment property through pre-approval as an expat.
