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Foreign Income Home Loan

This page is for people living in Australia, earning income in a foreign currency.

With boundless opportunities in science, medicine, engineering and other professional fields overseas, it’s no wonder that more and more Australians are earning foreign income.

However, if you’re looking to buy a property in Australia, lending policies can be strict when it comes to foreign income home loan applications.

Will banks accept your foreign currency and how much of it will they use when assessing your ability to borrow?

How much can I borrow?

Australians earning a foreign income are often highly-skilled professionals that have stable employment and make a good living.

This is particularly true of Australians working for a foreign government department.

Because of this, you may qualify for the following:

  • Borrow up to 95% of the property value or up to 100% with a guarantor.
  • Borrow up to 80% of the property value if you can’t provide acceptable income verification documents.
  • All foreign income will be considered on a case by case basis. Some lenders are stricter than others.
  • Get the same home loan features and interest rate discounts as if you were earning income in AUD.

Please call us on 1300 889 743 or complete our free assessment form to speak with one of our specialist mortgage brokers about your income situation.

Discover if you qualify for a foreign income home loan!

How much income will the bank use?

Did you know that some banks will only take into account some of your foreign income?

To allow for exchange rate movements, some lenders will only use 60% to 90% of your foreign income.

This means you may need to be earning some money in Australian dollars (AUD) or show rental income from an Australian property that you own.

Our best lenders will actually use 100% of your foreign income as long as you’re in a strong financial position.

What currencies do banks prefer?

  • Great British Pound or UK Sterling (GBP)
  • Euro (EUR)
  • Hong Kong Dollar (HKD)
  • New Zealand Dollar (NZD)
  • Singapore Dollar (SGD)
  • United States Dollar (USD)
  • Canadian Dollar (CAD)
  • Indian Rupee (INR)
  • Indonesian Rupiah (IDR)
  • Vietnamese Dong (VND)
  • Chinese Yuan Renminbi (CNY)
  • Japanese Yen (JPY)
  • Danish Kroner (DKK)
  • Malaysian Ringgit (MYR)
  • South Korean Won (KRW)
  • Swedish Krona (SEK)
  • Swiss Franc (CHF)
  • Taiwan Dollar (TWD)

If your currency isn’t a preferred currency then you may need a larger deposit.

Complete our free assessment form to find out how much of your foreign income your bank will use and whether you need a bigger deposit.

Do you earn foreign business income?

Is your business registered in a foreign country?

There are very few lenders that accept this type of income because of the tax implications of converting it back into Australian dollars.

This makes it difficult to prove your actual income with business bank statements.

However, some lenders will consider your application under a low doc lending policy meaning that you may only need to supply an accountant’s letter to verify your foreign business income.

If the business is registered in Australia but the business sells overseas, we have some lenders that will assess these proceeds under standard lending policy.

Are you employed by a foreign company?

People that apply for foreign income home loans are often highly-paid specialists or consultants that work for government agencies, non-government organisations (NGOs) or large multinationals.

For example, fly-in fly-out (FIFO) workers, particularly in the engineering and mining space.

More often than not, tax is not withheld from your pay and your income is paid into your Australian bank account.

We know lenders that will assess this as standard PAYG income even though, in most cases, you won’t receive sick leave, annual leave or other entitlements.

Discover more about what banks typically want to see in a foreign income application by checking out the proving foreign income page.

Do you earn rent from an overseas property?

It’s not uncommon for Australians earning foreign income to own property in the country that they make a living in.

This may be because they have a particularly strong tie with the country, they travel there frequently or they simply want to take advantage of a unique real estate market.

When it comes to assessing your ability to borrow, most lenders ignore this rental income.

However, some lenders will include part of this income, typically up to 85% or less to allow for exchange rate movements.

You can even use it to offset any foreign loans or debts that you currently have in order to put yourself in a better debt-to-income position when being assessed by the lender.

Essentially it means you can borrow more!

What about income from other foreign investments?

Apart from property, you may own foreign shares or interests in a company.

Foreign dividends, interest income or other investment income can all be considered as part of your regular income!

Typically, you’ll need to provide your last 2 years Australian and foreign tax returns or bank statements showing salary credits.

The main thing the bank wants to know is that the income is regular and ongoing into the foreseeable future.

Do you earn a foreign pension?

Are you a dual national?

You may be eligible to receive the pension in a foreign country.

The pension age can vary depending on the country and whether you’re a male or a female.

There a few lenders that will consider this income on a case by case basis depending on the currency.

Typically, the pension cannot be your sole source of income and you need to provide 6 months evidence of receiving regular payments.

Ask us about a foreign income home loan!

The lending policies around foreign income home loans are complex and change regularly.

It pays to have an experienced mortgage broker on your side!

Call us on 1300 889 743 or complete our free assessment form to discover if you qualify.

  • Finnis

    Hi, I earn in Canadian Dollars and was thinking of applying for a foreign income home loan but I need to get to Canada immediately and may be staying there for at least 3 months. I think I’ll apply from there itself as I can’t apply right now and I don’t want to wait till I’m back. Will I have to take out a non-resident home loan?

  • Hey Finnis,

    As long as you’re an Australian citizen, permanent resident or an NZ citizen, you will be considered an Australian expat and so you can qualify for the same deals as Aussies living here. However, some banks may assess you as a foreigner meaning you will only be able to borrow up to 80% so applying with the right lender is key. If you’d like to discuss this with one of our expert foreign income mortgage brokers, you can call 1300 889 743 (+61 2 9194 1700 from overseas) or simply enquire online:
    https://www.homeloanexperts.com.au/free-quote/

  • Ben Ho

    Hi, I am a Australia Citizen and currently living in Hong Kong for more than 5 years. I just bought a property in Sydney, and wondering how much i can borrow? My income is in Hong Kong Dollars, should i get a local bank in Australia or borrow from one of the Hong Kong Bank?

    I am planning to move back to Australia in 2019, and before that time, i will rent out the property, does it make a difference in terms of my borrowing power when then bank viewing as investment property? Many Thanks.

  • Hi Ben,

    Australian banks regularly deal with Hong Kong Dollars so it’s highly likely you can get approved. As long as you can meet all standard bank lending criteria, you can borrow up to 95% of the property value. To borrow at the max, you will need to prove that you have a high income (varies from lender to lender) and stable employment. Being viewed as an investment property shouldn’t make a big difference in your borrowing power. You can find out more about mortgages for Australian expats in Hong Kong here, and enquire online to have one of our brokers give you a free assessment:
    https://www.homeloanexperts.com.au/overseas-australian-mortgage/expat-mortgage-hong-kong/