Australian credit has always been highly regulated by comparison to most other OECD nations. However a combination of recent consumer credit constraints and prudential constraints targeted at the over-heated Sydney and Melbourne markets has brought about very severe limits on non-resident lending. While servicing has become slightly easier there is still significant discounting of off-shore income.
However there are still options but we need to have your supporting documents in order to complete an assessment of your options taking into account your ability to service the loan and fit within lender’s guidelines. We will provide you by email a detailed review and comparison with all interest rates and fees clearly stated.
While the process is the same as for resident applicants there are often delays and so we strongly suggest that you allow 6 weeks for settlement and ensure that your contract of sale reflects this.
When it comes to policy or requirements no two lenders are the same:
- some foreign currency incomes are not acceptable – this can be due to instability or taxation issues
- most lenders will use a 10% to 50% income buffer to allow for FX movements
- some countries are tax free or have no formal tax reporting, this can be problematic in proving your income unless you work for a multi-national
- many lenders will require an Australian resident with power of attorney and an Australian address for serving notices
- non Australian spouses will often be treated differently particularly if they do not have permanent residence status in Australia
- while your income may be tax free most (not all) lenders will use Australian ATO scales when calculating your servicing capacity