Arranging an Australian Mortgage

We very much believe that all Australian expatriates, unless they have taken a decision to settle elsewhere permanently, should retain a residential property investment in Australia. It is simply because we have seen too many families and individuals disadvantaged in the past by significant price surges in the Australian market and/or adverse foreign currency movements.

On a standalone basis, Australian residential property has generated very competitive returns compared to most asset classes, such as shares. For the expatriate however, the investment also represents a form of insurance and psychological "peace of mind" while overseas. Generally, the best approach is to purchase property before proceeding overseas and ensuring that it can be seen as your "main residence" for tax purposes - this means that even if you rent it out, you obtain a capital gains tax exemption for a period of six years.

The table below provides a general summary of the maximum lending rates available to four Categories of Borrowers. Be aware that loans exceeding a loan to valuation ratio (LVR) of 80% will attract Lenders Mortgage Insurance (LMI) and this can be a significant amount, although lenders will usually allow it to be capitalised and added to your mortgage for repayment purposes.

 

Four Categories of Borrower
Maximum
Borrowing
Capacity
  • Non-resident Australian citizens and permanent residents ("expatriates")
95% + LMI
  • New Zealand citizens
95% + LMI
  • Foreign citizens living overseas
    ("overseas investors")
80%
  • Temporary residents living in Australia
    (e.g. on 457 visas)
95% + LMI

 

If you would like an experienced mortgage broker to contact you and provide details of the loans available in your situation please complete our Inquiry Form below. Remember that using a mortgage broker in Australia does not cost anything - the lender pays for the broker's costs and ours has access to almost all the loans available in the Australian market.