Non-resident mortgage in Australia: who lends to borrowers living overseas

How non-resident lending works in the Australian market

Australian lenders sort applicants by citizenship and by where they live. A borrower who earns a salary in Singapore, London or Dubai and wants a property in Sydney or Perth is assessed under separate credit policies, with lower maximum loan-to-value ratios and extra checks on foreign income.

Since the big banks tightened foreign lending around 2016, much of this market has moved to non-bank lenders and a few banks with international networks. Brokers who specialise in overseas borrowers often see wider choice than a direct approach to one bank.

Expat loans versus foreign citizen loans

Expat loans are for Australian citizens or permanent residents living abroad. They do not need foreign investment approval, and lenders such as Bluestone and Firstmac have published expat ranges for this group. Foreign citizen loans serve people with no Australian citizenship, and fewer lenders accept them.

FIRB approval and the ban on established dwellings

Foreign persons generally need approval under the Foreign Acquisitions and Takeovers Act before buying residential land, and application fees rise with the price. The government also introduced a temporary ban on foreign persons buying established dwellings, running from 1 April 2025 to 31 March 2027.

In practice a foreign citizen living overseas is usually limited to new dwellings, off-the-plan apartments or vacant land for development. Lenders normally ask to see the approval letter or its conditions before issuing formal approval, so the FIRB process belongs at the start of the timeline.

State surcharges on duty and land tax

Each state adds its own foreign purchaser surcharge to transfer duty, and several also charge an annual land tax surcharge. In 2025 New South Wales applied 9 % and Victoria 8 % on top of standard duty; confirm current rates with the state revenue office before signing.

Lenders active with non-resident borrowers

The table summarises providers whose non-resident or expat offers appear on their own websites or in their announcements. Policies change frequently, so treat it as a starting list and request the current credit guide, rate sheet and maximum loan size from each lender.

Who a non-resident loan suits

The product fits Australian expats buying a future home or an investment unit before returning, foreign nationals with FIRB approval for a new apartment, and temporary visa holders who have since moved abroad. It rarely suits buyers who need maximum leverage or very fast settlement.

Deposit, pricing and fees in 2025–2026

Deposits for foreign citizens commonly start around 30 to 40 % of the price, while expat products may allow higher leverage. Rates are usually above standard owner-occupier pricing, and figures vary by lender, currency of income and property location, so compare comparison rates rather than headline rates.

Budget also for the FIRB fee, the state surcharge, lender application or valuation fees, conveyancing and international document certification. On a new apartment these costs can add several percentage points to the cash needed at settlement, well beyond the deposit itself.

Documents lenders usually request

Expect a certified passport, recent payslips and an employment letter, foreign tax returns or tax assessments, bank statements showing salary credits and savings, a credit report from the country of residence and, for foreign citizens, the FIRB approval. Translations are needed for documents not in English.

Steps to apply from overseas

1. Check eligibility under FIRB rules and the established-dwelling ban before shortlisting properties.
2. Speak with two or three lenders or a specialist broker about maximum LVR and accepted income currencies.
3. Gather certified identity, income and tax documents, with translations where required.
4. Obtain conditional approval and a written estimate of all fees and surcharges.
5. Apply for FIRB approval if needed and sign the contract only once finance terms are clear.
6. Arrange a valuation, sign loan documents through an approved witness abroad, and settle.
7. Set up an Australian account to receive rent and pay the loan.

Exchange-rate exposure on repayments

Loans are written in Australian dollars, while many borrowers earn in pounds, euros, US dollars or dirhams. A weaker home currency raises the real cost of each repayment, and lenders often apply a haircut to foreign income, so test affordability with a margin.

Common mistakes and red flags

• Paying a holding deposit before checking whether FIRB approval is required.
• Comparing only headline rates and ignoring surcharges, fees and the comparison rate.
• Assuming an expat loan is open to a partner who holds no Australian citizenship.
• Sending an upfront fee to someone on social media promising an Australian home loan approval before any credit assessment; licensed lenders do not ask for this.
• Signing documents in English without understanding repayment, default and break-cost clauses.

Verifying a lender or broker

Credit providers and brokers must hold an Australian credit licence or act as authorised credit representatives. Check the name and licence number on the ASIC professional registers, and confirm that the email domain matches the official website before sending identity documents.

Frequently asked questions

The answers below cover recurring questions from overseas buyers; they summarise general rules and do not replace advice on an individual application.

Can a foreign citizen living abroad buy an existing house?

Under the temporary ban, foreign persons generally cannot buy established dwellings between 1 April 2025 and 31 March 2027, with limited exceptions. New dwellings and off-the-plan purchases remain possible with FIRB approval, subject to the usual fees.

Do the big four banks lend to non-residents?

Their appetite for foreign citizens living overseas has been limited since policy changes in the late 2010s, although some still serve Australian expats. Non-bank lenders and specialist brokers are therefore the usual first port of call for overseas applicants.

Is overseas rental income from the new property counted?

Most lenders count expected Australian rent, often only a share of it, to cover holding costs. A rental appraisal from a local agent helps, but the main serviceability test still rests on documented salary or business income earned abroad.

Can the loan be refinanced after returning to Australia?

Yes, many borrowers move to standard resident pricing once they live and work locally again. Lenders will want Australian payslips and sometimes a probation period completed, and any fixed-rate break costs should be checked before switching.

By Nabil Frik · Updated 13 October 2026