Borrow in Australia — From Anywhere in the World

Being an Australian living overseas, or a foreign national investing in Australian property, doesn't close the door on Australian finance. An Expat or Non-Resident Mortgage is a home loan specifically structured for borrowers who live outside Australia — whether you're an Aussie expat in Singapore, a professional working in Dubai, or an international investor drawn to Australia's resilient property market.

This loan type comes with its own set of criteria, lender policies, and documentation requirements. Understanding those differences — and knowing which lenders will work with your specific situation — is what determines whether your application succeeds.

Who Is This Loan For?

Expat and non-resident mortgages serve two distinct groups of borrowers, each assessed quite differently:

Australian Expats — Australian citizens or permanent residents currently living and working overseas. These borrowers are treated most favourably by Australian lenders. They are not subject to FIRB restrictions, are not affected by the 2025–2029 foreign buyer ban on established dwellings, and in most cases are exempt from foreign purchaser stamp duty surcharges. Australian citizens living overseas can apply for Australian home loans, though the available lenders, acceptable income types, and deposit requirements differ from domestic applications.

Foreign Nationals / Non-Residents — Non-citizens and non-permanent residents wishing to invest in Australian property. A non-resident home loan is a mortgage for people who live outside Australia or are not Australian citizens or permanent residents. This includes foreign nationals, temporary residents in Australia on certain visas, and Australian expats. It differs from a standard home loan because lenders view non-residents as a higher risk, so they apply stricter lending rules, request more documentation, and often reduce borrowing capacity.

Knowing which category you fall into shapes every aspect of your loan — from how much you can borrow, to which lenders will consider you, to what the government requires of you before you can buy.

FIRB: Do You Need Approval?

Australian Citizens and Permanent Residents

You are exempt from needing approval from FIRB if you are an Australian citizen, including expats living overseas.

If you're an Australian expat living overseas or an Australian citizen living in Australia, you don't need approval from the FIRB. You can buy a new property, existing property, or vacant land. You can live in the property, or it can be an investment.

Important nuance for Permanent Residents: A permanent resident who is "ordinarily resident in Australia" is not a foreign person and does not need FIRB approval. However, if you are a PR holder who is living overseas and no longer ordinarily resident in Australia, you may be classified as a "temporary resident" under FIRB rules and subject to approval requirements.

If you hold Australian PR and are based abroad, seek specific legal advice before proceeding.

Foreign Nationals

Foreign nationals do require FIRB approval before purchasing residential property in Australia. FIRB approval refers to the permission granted by the Foreign Investment Review Board, an Australian government body that oversees foreign investment. The purpose of the FIRB approval framework is to ensure that foreign investments align with Australia's national interest. Without this approval, foreign buyers may not legally purchase residential or commercial properties in Australia.

The 2025–2029 Established Dwelling Ban

This is a critical restriction that applies specifically to non-citizen, non-permanent resident buyers — but not to Australian expats:

From 1 April 2025 to 30 June 2029, foreign persons are banned from purchasing established dwellings in Australia (limited exceptions apply). The government has extended the ban, which was due to end on 31 March 2027.

Temporary residents can still apply for approval to purchase vacant land or new dwellings.

The April 2025 ban on established dwelling purchases applies to temporary visa holders, not to Australian citizens or permanent residents. As an expat, you can buy established homes, new builds, off-the-plan apartments, or vacant land with no dwelling-type restriction.

Deposit Requirements and Maximum LVR

The deposit required depends heavily on whether you are an Australian expat or a foreign national.

For Australian Expats:
Most Australian lenders cap expat LVR at 80%, meaning a minimum 20% deposit is typically required, though outcomes vary by lender and borrower profile. Unlike domestic borrowers who can sometimes access higher LVRs, expats face a tighter set of rules around income shading, currency conversion, and residency status that directly reduce how much lenders will advance.

That said, higher LVRs are available with the right lender. Australian citizens living abroad can borrow up to 95% LVR plus LMI. Australian permanent residents working overseas can access up to 90% LVR plus LMI.

For Foreign Nationals:
In most cases, lenders require a deposit of 30% to 40%, particularly for foreign nationals.

Foreign nationals are usually limited to new dwellings or vacant land to build on, and additional fees and stamp duty surcharges apply. Lending is tighter again, with lower maximum LVRs and a narrower set of lenders.

In addition to your deposit, budget for stamp duty, legal fees, and any applicable government charges — all of which are payable on top of your deposit contribution.

How Foreign Income Is Assessed

Qualifying for an Australian expat home loan on a foreign salary is more complex than simply converting your pay into Australian dollars. Australian lenders apply income shading policies that reduce the assessed value of overseas earnings, and the currency you're paid in matters greatly.

Most big banks apply a 20–40% shading to foreign income, or decline outright. Specialist lenders assess the income using the actual overseas tax paid, not phantom Australian tax rates.

Income shading policies differ by lender and by currency. There is no published industry standard.

When it comes to acceptable currencies, major currencies such as USD, GBP, SGD, HKD, AED, and EUR are accepted by most lenders, but the shading applied to each differs. Some lenders decline income denominated in less common currencies entirely.

Employment structure also matters: Australian citizens living overseas are generally viewed more favourably than foreign nationals or permanent residents who have been offshore for extended periods. PAYG salaried income is easier to verify than self-employed, contractor, or commission-based income.

Interest Rates

In most circumstances there is no interest rate margin or penalty attaching to being an expat, and you will access the same interest rates as Australian residents applying to the same lender for the same product.

However, lender selection is everything. Australian citizens living overseas are treated more favourably by most lenders than foreign nationals, but the gap in policy varies significantly from lender to lender. Lender policies on foreign income, acceptable currencies, and borrower residency status are not published and change regularly.

Some lenders have been known to quietly increase rates on existing borrowers once they discover the borrower's address is overseas. Choosing an expat-friendly lender from the outset protects you from this.

Non-resident mortgages will usually have higher interest rates as well, but otherwise have the usual options of a regular property loan, such as fixed rate, variable rate, or split rate loan options. Interest-only loans may also be available, but often come with maximum term limits, for example five years.

Stamp Duty: What Expats and Foreign Buyers Need to Know

The foreign buyer stamp duty surcharge applies to non-citizens and non-PR holders. Australian citizens and permanent residents living overseas are exempt, regardless of how long they have been offshore. This alone can save tens of thousands of dollars on a median-priced property — and it is the key differentiator between an expat and a temporary visa holder buyer.

However, if you are purchasing with a foreign spouse or partner: Even if you are able to take out a joint loan, you will have to pay the Foreign Buyers Duty, which can potentially double your regular stamp duty costs.

If you buy in joint names, you'd only pay foreign citizen stamp duty on the portion that the non-Australian owns.

Australian citizens living overseas are not automatically exempt from foreign purchaser stamp duty surcharges when buying property back home. Whether you pay thousands of dollars in additional duty depends almost entirely on which state or territory the property sits in, and the rules are inconsistent, sometimes counterintuitive, and still evolving in 2026.

Always confirm your stamp duty position with your conveyancer before exchanging contracts.

Tax Considerations for Expat Property Owners

Owning Australian property as a non-resident comes with ongoing tax obligations that must be planned for in advance.

Rental Income: For the 2025–26 financial year, foreign residents are taxed at 30% on Australian-sourced income up to AUD 135,000, with higher marginal rates applying above that threshold. There is no tax-free threshold.

You can, however, claim deductions for loan interest, property management fees, depreciation, and maintenance to reduce your taxable rental income.

Capital Gains Tax: As of 1 January 2025, Foreign Resident Capital Gains Withholding applies to all property sales regardless of value, at a rate of 15%.

Non-residents may also lose access to the standard 50% CGT discount available to Australian tax residents for the period they held the property as a non-resident. Tax planning before any sale is essential.

Land Tax Surcharges: Most Australian states impose an annual land tax surcharge on foreign owners holding residential land, in addition to standard land tax. Rates and exemptions vary by state and are subject to change; verify with the relevant state revenue office.

Documents Required

While requirements vary by lender, applicants typically need to provide:

• Certified copy of passport and photo ID
• Last 3 months' payslips from overseas employer
• Employment contract or letter confirming salary, role, and tenure
• 3–6 months of bank statements showing salary credits
• Evidence of deposit funds / savings
• Statements for any existing loans, credit cards, or liabilities
• Work visa or residency permit for your country of employment
• Tax returns (last 1–2 years, where applicable)
• Rental statements, if you own existing investment properties
• Signed Contract of Sale (once a property is under offer)

Self-employed applicants typically need 2 years of business and personal tax returns, 6 months of business statements, and an accountant letter.

Can the Process Be Completed Remotely?

Yes — entirely. Applications, documents, and supporting materials are handled electronically. When it comes to signing loan contracts, lenders typically accept one of the following:

• Australian Embassy or Consulate — witnessing of documents by a consular official in your country of residence
• Notary Public — having documents witnessed locally and couriered back
• Power of Attorney — authorising a trusted person in Australia to sign on your behalf
• Digital / Video Verification — where the lender's platform supports it

"Non-resident" means different things to the ATO, FIRB, and individual lenders — and lenders apply their own internal definitions that may not match either government framework.

Getting your classification right from the start avoids costly delays.

Lender Selection: Why It Matters More for Expats

Not every Australian lender will finance a non-resident borrower, and among those that do, the requirements vary significantly across income verification, acceptable currencies, loan-to-value ratios, and FIRB compliance expectations. In 2026, the non-resident investment property lending landscape includes a mix of major banks, regional lenders, and non-bank lenders, each with distinct policies that are subject to change.

Bank policy on home loans for non-residents is a minefield, with competing lenders applying vastly different credit policies and home lending criteria. This difference in lending criteria can result in one bank approving the home loan while others will decline the application, reduce the loan amount, or require a larger deposit from the borrower.

Most expat knockbacks come from a handful of avoidable missteps. Going straight to a big bank is one of them. The majors are often the harshest shaders of foreign income, and the quickest to decline an unusual file. People take that "no" as the verdict on their whole situation. It rarely is.

This content is general in nature and does not constitute financial, tax, or legal advice. Lending criteria, FIRB rules, stamp duty obligations, and tax rates are subject to change. Always engage a qualified mortgage broker, tax adviser, and legal professional before making any property or financial decisions.

Ready to find out where you stand? The empanelled brokers at Mortgage Counsel specialises in expat and non-resident home loans across Australia. We work with a broad panel of lenders, understand the nuances of foreign income assessment, and manage the entire process remotely — wherever in the world you are. Get in touch today.

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