Employed Overseas? Can I Still Buy Property In Australia?
Of late, I have had a few inquiries from clients living overseas, wanting to relocate back to Australia and buy a home. The other scenario that is quite common is that of the ex-pat staying in the country that they are currently working and purchasing an investment property here in Australia. There are a myriad of other situations that we come across obviously, but I thought that I would cover the basics of securing finance from overseas.
Before moving forward on putting an offer to purchase in for anything, it would be prudent to have a chat with a mortgage broker to see if indeed this is something that is going to be possible. If you are in Adelaide, Castle Mortgages are very adept mortgage brokers who have great experience in this space.
So as with any lending, two of the main things you want to look at ticking off on the loan application are servicing and deposit.
Probably from a servicing perspective, the first hurdle to overcome when trying to gain finance from overseas is the currency that you are working in being acceptable. The lenders that play in this space generally only accept the major currencies in the world as a form of remuneration, the American dollar, British pound, Euro, etc. The list of acceptable currencies continually changes and has a few of the smaller currencies on it, so again, it’s best to check at the time with your local Mortgage brokers, Castle Mortgages, what will be accepted at the time.
I have found that mainly you are looking at the Big Four Banks when it comes to doing a transaction like this, as they seem to have the global presence to be able to do the necessary checks and balances and the confidence when it comes to size. That’s not to say you smaller non-conforming lenders do not do this, and it is just a more straightforward process through the big banks. The next thing to consider is that the income you are earning will be reduced by between 20 and 30% as a safety buffer due to the more risky type of lend being done with an applicant overseas. Your commitments overseas and here in Australia will need to be covered by your income and the new loan at a buffered interest rate using 70 -80% of your income.
In taking income from overseas, you are generally quite limited to the source of that income being acceptable. If you are self-employed, you can rule out taking finance any further. You will need to be on a PAYG income and at a relatively large company for income to be acceptable. If you work with a large multinational, you are in the best position for finance to be approved. If it is a small company, this can still work with a select few lenders, as long as it has an internet presence, and the bank can make a random phone call to the number listed and confirm employment. If this all checks out, you are good to move forward with a finance application.
With regards to the deposit, if you have saved your deposit overseas, this will need to be evidenced by recent bank statements over the last three months through a reputable lending institution over there. If docs are in another language, they will need to be translated too. If we can cover off on servicing and deposit, then the rest of the loan would be as a standard loan here in Australia.
One last thing to look at, if you were going to be buying a home from overseas to come back to Australia to live in, you would really need to be moving back within the same company or already have a permanent position in a new role here in Australia, as the lender will not accept a new loan not knowing what your future job prospects are going to be with your re-location.
As this is a more complex situation and everyone’s circumstances are different, please do not take this blog as advice. It is general in nature. It is always advisable to have a chat with an experienced Mortgage broker in Adelaide like Castle Mortgages to see what can be done in your specific situation. We would love to have a chat, so get in touch.