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Getting Housing Loan in Australia 

In the last 18 months, most major lenders have pulled out of lending to non-resident borrowers and the few lenders who do lend have stricter restrictions and requirements. Interest rates for foreign investors range from 6% to 8.5% and setup fees, which include valuations, lender legal fees and application fees can be high.


Do I qualify for the loan?

There are a number of factors which can determine your eligibility and these could include:

  1. A minimum of 30% deposit plus additional funds for stamp duty and legal costs​​

  2. An acceptable net worth positions

  3. Earning income in an acceptable currency that meets lenders minimum servicing requirements

  4. Have a clear credit history and obtain a credit report

  5. Be able to obtain foreign investment review board (FIRB) approval for a purchase

Example funding position

Purchase Price        $500,000

Stamp duty (varies according to state)           $18,197

Settlement/Solicitor fees                                 $2,500

Bank setup fees (assumed at 2.5% of loan)   $8,750

FIRB application for property under $1m        $5,600


Total required                                                $535,047


70% Loan based on value from    $350,000

Your remaining contribution for purchase     $188,047

Based on an average foreign investor interest rate of 7% over 30 years:
Repayments on a Principal + interest repayment would be about $2,329 / month ($538/week)


Repayments on an Interest only repayment would be about $2,048 / month ($418/week)

*do note that Interest only payments may attract a higher rate and is also limited to a maximum of 5 years, after which it reverts to a Principal + interest repayment.

How do the lenders calculate my borrowing power?

  • Most lenders will use up to 80% of the rental income of the property you are purchasing

  • Your foreign income is converted to AUD and only used up to 80% of your actual income

  • Australian tax rates are also applied even if you pay lower tax in your country

  • Your asset and liability position are taken into account

  • If you are self-employed, tax returns and financials will be required in the application

What documents do I need to provide?

  1. Passport and drivers’ license (copies may be required to be certified at an Australian Consulate)

  2. Last 3 Payslips and an employer letter confirming job status, role and salary

  3. If self-employed – company financials, tax returns and individual returns are required

  4. 6 months’ worth of transaction statements to confirm salary credits

  5. Proof of available funds for required contribution

  6. Personal details which also include residential and employment history

  7. Statement of position for all current assets and liabilities

What is the lending process?

Information and document collection 

Loan and Lender proposal

Loan submission to Lender

Loan Approval and Document signing

Settlement of Loan and Collection of Keys

To work out what lender and loan will best fit your needs, please contact our in-house finance team in order for us to understand better your circumstances and objectives in buying a property in Australia.

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