Expat Home Loan

1. http://expathomeloan.webs.com/ Expat Home Loan

2. Are you an Australian expat who wants to know if you are still eligible to purchase property back home? Are you finding it hard to find accurate answers to the many questions that have been going through your mind? Then if you are looking for some answers about your expat home loanqueries, you are in luck because this article has all the right answers - with home loan forum. 

3. Who is Considered an Australian Expat? Australian expats are those non-resident Australian citizens who are living and working overseas. These people could still have extended families in Australia and would like to invest in a property back home. There are quite a number of Australian expats who would still want to invest in real estate in the country because of a promise of a huge economic boom for years to come. There is a general rule, however, that most banks and lending institutions do not accept loan applications for current non-residents because their security is on the line, after all, it is all business for them. Plus, there are institutions that do not have the facilities and the resources to do so. 

4. Important Issues That are Needed to Be Addressed The foremost concern could be on the amount you can borrow. As an expat, the requirements are stricter compared to those that are currently living in the country. In case you don’t have enough documents to justify the extent of your foreign income level, you could be limited to only about 80% of the property value. However, if you can prove that you are have a substantial income and you have a stable employment even in a foreign country then you can be approved for as much as 95%. This will apply to non-resident Australian citizen, to expats who are married to a foreigner and living overseas, and also to those who are still residents of Australia but have the intention of moving overseas in the future.

5. How Much Deposit Do You Need to Qualify for an Australian Expat Home Loan? To apply for a home loan, expats should have at least 20% deposit. However, for those expats who are able to provide valid proof that they have enough resources to make payments and other obligations then a mere 5% deposit can be required. These deposits are often in the form of genuine savings to be approved. If you already have a property in Australia and you have a larger deposit, then genuine savings will not be part of the requirements. The key is to find the right lending institution.

6. Proving Your Income Proof of income is very important for expats applying for home loans. Why should you need to provide proof? Lenders require for you to comfortably pay whatever amount you are approved for, that is why you need to provide proofs that you are earning much to merit a loan approval.Lenders refer to it as “strong serviceability”. If they are able to establish that you’ll find it hard to comply with the regular payments then you will be required to submit additional documents, if they are still not satisfied, then you can kiss your dream goodbye. Pay slips and income tax returns are the main requirements and they have to be written in English. However, if your documents are in other foreign languages, you will need to have the documents translated by authorized agencies. A bit of good news, though, there are lending institutions and banks that already have specialists in foreign languages so translating the documents will not be much a problem. There are lenders also that find letters from the employer as binding and can be accepted as evidence of income when you are only borrowing 80% and below.

7. Can the Currency You Are Using as Expat Be Accepted? Find out if the lending institution or bank accepts foreign currencies as payment, then take advantage if they do. This is beneficial because you minimize the risk of fluctuations in the foreign exchange rate. However, you have to also consider that there might be additional risks should there arise huge movements in the exchange rates then your loan might be declared unsecured in Australia which could lead you to default.

8. You Need to Choose a Good Lending Institution Not all lending institutions are the same and not all of them can work with Australian expats. Most expats are encountering issues about difficulty getting approved by local Australian banks. There are banks that require pay slips and tax documents prior to loan approval making it sometimes hard for expats to comply. There are also issues about delays especially a lender doesn’t have a process in place for expats applying for home loans. Still there are lenders that do not approve loans that exceed 80% of the property value.

9. Also, some lenders require expats to go to the nearest consulate in their area of residence just to sign a formal loan application, which can be very inconvenient for most of the expats. Still some lenders do not even recognize special power of attorneys, making it more difficult for expats to purchase properties back home. Applying for an expat home loan entails a different process than getting your loan approved if you are a current resident. Expats should make sure that they are can provide ample amount of documents as proof of their capability to be granted a loan.