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  • Nicholas Kew

A Step-by-Step Guide to Australia Home Loans for Foreigners


Currently, very few Australian banks will lend to foreign investors because of the complexity and high risks associated with lending. All is not lost as here we will cover an in-depth guide for foreign investors or expats or anyone who's earning a foreign income to apply for a home loan to invest in Australian property.


Australian home loan eligibility for foreigners - can you qualify for an Australia home loan as a foreigner?

The short answer is yes. It's easy to apply for a loan. We're focused in Asia, and know the financial system of your country very well and can speak in English, Bahasa Malaysia, Cantonese and 普通话. Contact us for more information.


  • You can borrow up to 75% of the purchase price of your investment property in Australia with interest rates ranging from 4.90% to 6.00%.

  • Tip on how to get a lower interest rate: Borrow less, and the interest rates usually get cheaper.

  • Here's how you are more likely to be able to borrow more: (1) if you're a foreigner currently living in Australia or (2) you're married to an Australian citizen.

  • You are able to enjoy the benefits of applying for an interest-only loan. Usually for up to 5 years.

  • You can borrow for special products. For example, house and land or otherwise known as split contract arrangements. Speak with us to find out more.


How to check if you qualify for an Australian home loan as a foreigner?


Check if the source of your income is in an acceptable currency and of a preferred nationality. Be careful because there are limited lenders which accept foreign income and specific nationalities. Here's a summary of preferred currency and nationalities for lenders. For other currencies and nationalities please contact us and we will try to seek an exemption for you. There are various solutions to this and we can only advice accordingly once we know of your situation.


  • Brazil

  • Canada

  • China

  • France

  • Germany

  • Hong Kong

  • Indonesia

  • Malaysia

  • Japan

  • Macau

  • New Zealand

  • Singapore

  • South Africa

  • South Korea

  • Switzerland

  • Taiwan

  • United Kingdom

  • Vietnam


What is the Australia home loan interest rate for foreigners?


Interest rates on average are between 4.90% and 6.00%. This depends on the loan amount you are applying for, which country you are from and which currency you currently earn in.


How do lenders calculate your eligibility?


Different lenders have different assessment criteria. This is usually referred to as a serviceability assessment and is carried out to learn about your ability to repay the loan. You should expect the criteria to be tightly regulated as they need to account for foreign risks.


Here is a general criterion:

  • Lenders typically recognise income between 80% and 100% of the income you earn. Different types of income have different recognition criteria as well. For example, salaried, rental, and etc.

  • Overtime, allowances, commissions and bonuses are included.

  • Future rental income of your rental property is also taken into consideration.


With the right lender, you stand a higher chance of having a successful application.


Is there a restriction to borrowing depending on where your investment property is located?


In general, different lenders have different location restrictions. However, we have lenders that are able to do most postcodes (except for Northern Territory and Tasmania).


How does the loan application process work for a foreigner?


This is explained in detail here in our FAQ.


What should you do as a foreign investor before investing in an Australian property?


Generally, you will need to apply with the FIRB:


Be careful and be aware of stamp duties for foreign investors


It is important that you know about stamp duty here.


Can you apply for a loan to invest in Australian property as a foreign business owner? Yes, and in most cases it is straightforward. How this is done is by proving your income.


Why did the Australian banks stop lending to foreigners?


From 2005 up until 2016, there was a significant increase in the number of foreign investors wanting to buy in Australia. Unfortunately, many of the loan applications were falsified. As result banks were forced to stop lending to foreign investors. More information on this here.


How we can help you to qualify?


We are mortgage application agents who specialise only in home loans for foreigners and can advise you about your investment process. We help you to consolidate, liaise and make easy your property investment purchase.


If you'd like to buy an investment property in Australia or you are looking for loan options from Australia, please contact us and we will be in touch to discuss options available to you.

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