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If you’re living overseas and planning to buy a home or investment property in Australia, your application needs to account for your foreign income, deposit and documents. An expat home loan is a mortgage for Australian property assessed while you live abroad. Your lender needs to accept both your circumstances and the income you’ll use to repay it.
This guide is for Australian citizens and permanent residents buying in their own names. It covers:
- How lenders assess foreign income
- How to budget for your deposit and purchase costs
- The steps from an initial assessment to settlement
- How to arrange identity checks, certification and signing overseas
For lending options and an assessment of your situation, visit our Australian expat mortgage and home loan page.
Can you get a mortgage while overseas?
Australian citizens and permanent residents living overseas can apply for a home loan on Australian property. Approval depends on the lender’s criteria, including your income, expenses, debts, deposit and property. The country you live in and currency you’re paid in can affect which lenders will consider the application.
If you’re returning to Australia, explain when you expect to move and whether your overseas job will continue. A future Australian job or a change in income needs its own assessment. A plan to move home doesn’t make overseas income count as Australian employment income.
Australian citizens and permanent visa holders are generally exempt from foreign investment approval for a residential purchase in their own names. Buying jointly with a foreign partner, or through a company or trust, needs a separate check. Foreign investment approval and state tax surcharges have different rules. Have your conveyancer confirm the position before you sign a contract. See Treasury’s foreign investment guidance.
How lenders assess your foreign income
The lender converts your foreign income to Australian dollars and decides how much to include in its repayment assessment. It may discount the converted amount to allow for currency movement or variable earnings. This is called income shading. Tax treatment, living costs and debts also affect the result.
Keep the parts of your income separate when preparing your application:
| Income | What to prepare |
|---|---|
| Base salary | Recent payslips, salary credits and an employment contract or employer letter |
| Bonus or commission | A payment history showing the amount and frequency, separately from base salary |
| Housing and other allowances | The employment terms explaining whether each allowance continues and how it’s paid |
| Self-employment or business income | Business financial statements, tax records and evidence of the income available to you personally |
| Rental income | Lease or managing-agent statements, property expenses and related loan commitments |
The period of evidence and accepted document formats depend on the lender. Avoid applying a single income-discount percentage to every currency or income type. The foreign-income assessment guide explains the factors to compare.
Illustration: how income shading works
If an annual salary converts to A$150,000 and a hypothetical lender counts 80%, the income entering that part of its assessment is A$120,000. At 90%, it would be A$135,000. These percentages illustrate the calculation; they aren’t quoted lender policies. The difference in assessed income isn’t the same as the difference in loan size.
Budget for the deposit and purchase costs
The loan-to-value ratio (LVR) compares the loan amount with the property’s value. A maximum LVR is a lending limit, not a promise that your income supports that loan. A lower valuation or a lower borrowing capacity can increase the cash you need.
| Illustrative LVR | Loan | Price less loan |
|---|---|---|
| 80% | A$640,000 | A$160,000 |
| 90% | A$720,000 | A$80,000 |
| 95% | A$760,000 | A$40,000 |
These are examples, not offers or confirmation that an expat borrower qualifies at any listed LVR. They exclude purchase costs and lenders mortgage insurance (LMI). LMI protects the lender and may be payable when borrowing above 80% LVR. Whether it can be added to the loan depends on the lender’s limits.
Budget separately for transfer duty, conveyancing, inspections, lender fees and any applicable surcharges. Allow for exchange-rate movement if your savings are held overseas, and check transfer processing times before settlement. ASIC’s home-buying guidance explains the main costs.
Tell your broker where the deposit comes from: savings, a gift, sale proceeds or equity in another property. The lender may need statements or other evidence before it can accept those funds.
The purchase process from overseas
- Check the lending fit. Provide your country, citizenship or residency, currency, employment, income, debts and deposit. Include the property type and intended use.
- Confirm your budget. Compare the assessed borrowing capacity with your available cash and estimated purchase costs. Check what changes if the exchange rate or valuation moves.
- Prepare the application documents. Obtain the chosen lender’s checklist, including translation, identity and certification requirements.
- Consider pre-approval. Understand its conditions and expiry. Pre-approval is not unconditional approval for a particular property.
- Arrange the property and contract checks. Engage a conveyancer or solicitor and arrange the appropriate inspections. Get advice on finance conditions and auction commitments before you sign or bid.
- Obtain formal approval and arrange signing. The lender must complete its assessment of you and the property. Follow the lender’s and conveyancer’s instructions for identity checks and execution of documents abroad.
- Prepare for settlement. Allow time for transfers and any original documents. Your conveyancer and lender coordinate settlement; confirm when funds must be available.
Your location and the parties’ document requirements determine how much can be completed digitally. Confirm those arrangements before committing to a settlement date.
Certifying and signing documents overseas
Certification of a copy, witnessing a signature, verification of identity and translation are different tasks. Ask the lender and conveyancer which service is needed for each document and who they accept to perform it.
- Certified copies: confirm the approved certifier, required wording and identification details
- Signatures: check witness requirements and whether you must sign in the witness’s presence
- Identity: confirm whether a remote check is accepted or an in-person appointment is required
- Translations: obtain the lender’s translator requirements before paying for a translation
- Delivery: check whether scans are enough or originals must arrive before settlement
Australian embassies and consulates provide certain notarial services, but the available service and appointment process vary by location. A consular certification doesn’t guarantee that a document meets your lender’s requirements. Check the receiving party’s instructions against Smartraveller’s overseas notarial guidance before booking.
Keep the certifier’s full name and professional or official details with the document. Where a translation is required, ask whether the source document, translated copy or both need certification. Confirm the sequence before sending originals overseas.
Country and currency checks
Your country of residence, income currency and employment arrangement can each affect the lender shortlist. Country guides cover the local details without changing the need for an individual assessment:
Prepare for your lending assessment
Have your approximate purchase budget, deposit, income and debts ready, along with your country, currency and intended timing. Explain whether you’ll remain overseas, return to Australia or change jobs before settlement.
MAP Home Loans can discuss which lending options warrant investigation, the documents needed and your next step. Our service is paid for by the lender, not you.
15 to 30 minutes, without cost or obligation.
Frequently asked questions
Can I apply before returning to Australia?
Yes, lenders may consider an application while you live overseas. Your country, income, deposit and property must meet the chosen lender’s criteria. Tell the lender about any planned change to your job or residence.
Is a 20% deposit compulsory for expats?
There isn’t one deposit rule for every expat borrower. Available LVR, borrowing capacity, property valuation and purchase costs determine the funds you need. Check your scenario before relying on an advertised maximum LVR.
Can bonuses or self-employed income count?
Some lenders consider these income types, subject to their policy and supporting evidence. Provide the income history separately from base salary so the lender can assess each component.
Can I complete the purchase without flying home?
A remote purchase may be possible, but confirm the lender’s and conveyancer’s identity, signing and original-document requirements before committing to dates. Some services require an in-person appointment overseas.
Does pre-approval guarantee finance for a property?
No. Pre-approval is conditional and may expire. The lender still needs to assess the property and confirm that you meet its conditions before formal approval.
This guide provides general information, not personal credit, legal or tax advice. Lending policies and document requirements vary. Confirm the requirements for your application and purchase before acting.
