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Australian residents and citizens can buy property, but what about overseas individuals and non-residents? In some countries, foreigners are flat-out prohibited from purchasing property whereas in many others, there are severe limitations on what type of property can be owned and for how long. In Australia, however, non-residents can purchase property albeit with some additional challenges and a few limitations to note. One of the biggest differences in buying property as a non-resident in Australia is that you must apply to the Foreign Investment Review Board (FIRB) and pay them a fee, although there are a few others as well such as being limited to a newly built property or one in construction. This means that you cannot buy a home that has been previously lived in. If you don’t live in Australia or if you aren’t a resident, here are five quick tips to help you secure a mortgage for a property purchase: 01. Choose a Specialist Mortgage Broker Ordinary mortgage brokers in Australia operate on the (reasonable) assumption that you’re a resident or citizen, so instead of going to an ordinary mortgage broker you should see a qualified mortgage broker and obtain a consultation. Specialised mortgage brokers that offer mortgage assistance services for overseas and non-residents can take the additional criteria in mind, guide you through the process, and do everything within their power to assist you in a smooth and efficient property transfer until the keys are safely in your hands. What’s more important is that a good mortgage broker can act as Power of Attorney (act on your behalf) if you physically cannot be present in Australia in the weeks required to secure the loan. 02. Collect All Relevant Documents to Apply Naturally, you’ll need to prepare all sorts of documents to apply for a mortgage. Lenders don’t typically give out hundreds of thousands of dollars to strangers, after all! You’ll need to provide documentation such as your passport, driving license, and information related to your income. The lender may require other documentation and a good mortgage broker can help you by letting you know which documents to provide. 03. Select Your Lender Carefully A mortgage broker isn’t giving you the loan themselves, they’re just facilitating the process. Mortgage lenders across Australia vary and the terms of the mortgage, interest rates, and repayment periods can vary substantially from one lender to another. As with all major purchases in one’s lifetime, choose your mortgage lender carefully and take advantage of the expertise of your mortgage broker to narrow down your search.  04. Sort Out Currencies and Meet the Income Requirements
For most Australian citizens and tax paying residents, income tax returns and bank statements may suffice as proof of income to a mortgage lender. As an overseas applicant likely earning income in a different currency than AUD, there are additional risks that the lender is subjected to. Be prepared to have a plan in place for escrow to send over money for your deposit, as well as an additional buffer of cash for currency exchange fees, bank transfer fees, and so on. 05. Be Prepared to Make a Larger Deposit Than Anticipated As an overseas applicant for a mortgage, you’ll normally be expected to fork over around 20% to 30% as a deposit (or “down payment”) to qualify for a mortgage. Whereas lower deposits may be possible for some Australians, you will be expected to have at least this amount put towards the property from the get-go. Davlin Wealth Management Schedule a consultation with Davlin Wealth Management today. Comments are closed.
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