Many Australians living overseas experience some difficulty when trying to arrange finance for a property purchase.

Though there are some lenders who will refuse loans for expats as standard policy, many lenders will lend – albeit with more stringent requirements than for an Australian resident.

Some lenders will consider overseas net income when calculating your borrowing capacity, though they typically discount it after conversion to Australian dollars to allow for currency fluctuations. This income is used to determine whether you can service the debt.

Further, some lenders will apply Australian tax to your income when making the calculation, which can severely impact your borrowing capacity if you are earning money in a low-tax foreign country.

Some banks will require a lower LVR (Loan to Value Ratio) than for a standard loan, or may require additional security.

It is possible to secure a loan whilst living overseas and an experienced mortgage broker will be crucial to connect you with the right lender for your personal situation. For more information give me a call on (02) 9908 9888 or contact me by email.

Patricia Williams is a credited representative (CRN 400458) of BLSSA Pty Ltd (Australian Credit License No. 391237).