Australian Expat Home Loans: How to Buy or Refinance Property from Overseas

The Expat Lending Landscape in Australia (2026)

Following APRA's increased scrutiny of foreign-income lending, several major banks reduced or withdrew their expat lending programs. As of 2026, the landscape is:

Major banks: ANZ, CBA, NAB, and Westpac all offer expat lending but with significant restrictions — lower maximum LVRs (typically 70–80% vs 90–95% for domestic borrowers), higher interest rates in some cases, and limited acceptable income currencies.

Second-tier lenders: Banks like ING, Macquarie, and Bankwest have varying expat policies — some accept certain foreign currencies, others require a domestic co-borrower.

Non-bank lenders: Several non-bank lenders specialise in expat and foreign-income lending, often with more flexible policies but higher rates.

Key restrictions for expats: Maximum LVR is typically capped at 70–80% (no 90–95% LVR lending for expat income). Some lenders only accept income earned in 'approved' currencies — typically AUD, USD, GBP, EUR, SGD, HKD, NZD, CAD, JPY. Income earned in other currencies may require a specialist lender. LMI is generally not available for expat borrowers, so 80% LVR is usually the maximum.

Australian citizens living overseas purchasing Australian investment property generally do not require Foreign Investment Review Board (FIRB) approval. Non-citizens (including permanent residents who have left Australia) may require FIRB approval — always check before proceeding.

How Foreign Income Is Assessed and Currency Risk

Lenders assessing foreign income apply additional discounts (shading) to account for currency risk and the difficulty of verifying overseas employment. Typical shading: income earned in major currencies (USD, GBP, EUR, SGD) is accepted at 80–90% of the AUD-equivalent amount. Income earned in less common currencies may be accepted at 60–70% — or not accepted at all.

Currency conversion is based on the exchange rate at the time of application. Lenders do not guarantee a rate — if the AUD strengthens against your income currency between application and settlement, your assessed borrowing power decreases.

Some lenders apply additional serviceability buffers for expat borrowers — adding 1–2% on top of the standard APRA 3% buffer, effectively requiring you to demonstrate affordability at an assessment rate of 10–12%.

Tax treatment adds complexity: Australian expats may be tax non-residents for ATO purposes, which changes the tax rates applied to Australian rental income and capital gains. Non-residents lose the tax-free threshold ($18,200) and lose the 50% CGT discount on properties acquired after 9 May 2017. These factors affect the true cost of the investment.

Employment verification is more complex from overseas. Lenders typically require: employment contract in English (or a certified translation), three to six months of payslips, bank statements showing salary deposits, and a letter from your employer confirming tenure, role, and remuneration.

• ✓Foreign income shaded to 80–90% for major currencies
• ✓Less common currencies shaded to 60–70% or not accepted
• ✓Maximum LVR typically capped at 70–80%
• ✓Additional serviceability buffers may apply (4–5% above loan rate)
• ✓LMI generally not available — limits LVR to 80%
• ✓Tax non-resident status affects rental income tax and CGT
• ✓Employment documents must be in English or certified translation

Practical Steps to Apply for a Home Loan from Overseas

Step 1: Engage a mortgage broker experienced in expat lending. Not all brokers understand the nuances of foreign income assessment, currency shading, and lender-specific expat policies. A specialist expat broker can immediately identify which lenders will accept your income type and currency.

Step 2: Gather your documents early. Typical requirements include: passport, current visa or residency permit, employment contract, six months of payslips, six months of bank statements (showing salary and expenses), most recent tax return (Australian and/or foreign), details of any Australian assets and liabilities, and evidence of your deposit funds.

Step 3: Obtain a Power of Attorney (POA) if you cannot attend settlement in person. A POA allows a nominated person in Australia (typically a family member or solicitor) to sign settlement documents on your behalf. This must be prepared and, in many cases, notarised or apostilled in the country where you are residing.

Step 4: Consider foreign exchange risk. If your deposit is held in foreign currency, lock in an exchange rate or use a foreign exchange broker (like OFX, Wise, or a bank FX desk) to transfer your deposit to AUD well before settlement. Exchange rate fluctuations can add thousands of dollars to — or subtract from — your available deposit.

Step 5: Appoint an Australian-based conveyancer or solicitor who is experienced in handling purchases for overseas-based buyers. They will manage contracts, settlement, and any POA requirements on your behalf.