There are a number of challenges that face expats who are purchasing property in Australia while they live and work overseas. This article outlines some of these challenges and offers some solutions that will undoubtedly make your purchase easier.

1. Is it possible to arrange a home loan when I earn a foreign income?

Many lenders do not like lending to Australian expats living overseas earning a foreign income.  However there are a still a good deal of lenders that will lend, when managed through a solid mortgage finance relationship.  Bank policy does vary widely amongst lenders but as a general rule when working out borrowing capacity they will take your overseas net income (ie, after tax and deductions), convert it to AUD and then discount it by 10-20% to allow for currency fluctuations. This income is then used to determine whether you can service the debt.

Some lenders will apply Australian tax to your income.  This can severely impact on your borrowing capacity especially if you are in a location like Singapore, Hong Kong or Dubai where there is little or no tax payable.

It is therefore important to speak to a qualified mortgage broker that is an expert in expat home loans to ensure your loan is not declined or severely delayed due to inexperience with the policy or practical issues.

2. My payslips are in a foreign language. Will the bank accept these for my expat home loan?

If your payslips and bank documents are in a foreign language then the bank will, before approving your home loan, require these to be translated. MAP has access to qualified translators who will translate your documents for you for a fee. If of course the documents are printed in dual language with English then there would be no need to have them translated.

3. I have tried to contact the banks but no one responds to my emails or are slow to respond to my enquiry?

Expats commonly complain that banks or other brokers are slow to respond or do not respond at all to their enquiries. There are probably three reasons for this;
a) The bank staff work on a salary so they are not hungry, motivated or driven to respond quickly to provide the best service and secure the loan,
b) The average bank manager would put this in the “too hard basket” as they have little or no experience with loans for Australian citizens living overseas. Lets face it, how often would the average bank manager see an expat walk through the front door and ask for a home loan?
c) Many bank managers are not up to date with technology so do not respond well to email or online enquiries,  and feel uncomfortable managing mortgage applications almost wholly online. 

At MAP Mortgage Brokers we are driven to provide Australian expats with the best possible service and advice and will generally respond to your enquiry within 2 hours of an initial enquiry.  We offer around-the-clock service, and will meet you, using modern technology, at a time that suits you.  

4. But I have to travel back home to arrange my finance right?

No, MAP has systems in place so that everything can be done by email, fax, post and over the phone or Skype, no matter where you are living and working on the MAP.

5.  How do I Organise documents to be witnessed when living abroad in a foreign country?

Once you have found a property and your home loan is unconditional, MAP will post the formal mortgage documents/contracts to you by international express courier. These documents outline your agreement with the bank and will therefore need to be witnessed.

Depending on which State of Australia you are purchasing in and which lender you are going with, there are restrictions on who can witness these documents. If you are living in Singapore, UAE, Hong Kong, USA or England then it’s generally not hard to find a qualified person and MAP will provide you with a list of appropriate persons with your mortgage documents. In other parts of the world MAP will advise you how to proceed here with your particular loan documents but as a rule documents can be witnessed by:
1. Consulate Official (British or Australian),
2. Lawyer, Doctor, Teacher or Bank manager
 

6. How do I find a property when I am living overseas and what are the steps involved?

Its easier than you think! See our step by step guide to buying property when living overseas.