Foreign National Australian Mortgage, Maximum 70% LTV

• Maximum LTV: Up to 70%
• Loan Type: Principal and interest
• Property Types: Off-the-plan new properties, land and construction
• Maximum Loan: Up to $1.5 million in New South Wales and $900,000 in Queensland, with Western Australia subject to individual assessment

Foreign nationals looking to purchase property in Australia can face additional lending requirements, particularly where their income is earned overseas or their circumstances do not fit standard domestic borrower criteria. Specialist Australian mortgage solutions can provide financing of up to 70% loan to value (LTV), subject to the lender’s assessment and property suitability.

The lending structure outlined in this case allows finance of up to 70% of the property valuation and can be used for off-the-plan new property purchases, land acquisitions and construction projects. The available facility is structured on a principal-and-interest basis with a minimum five-year term.

Income assessment can take into account up to 80% of net income and 80% of rental income, subject to the lender’s criteria. The facility is available to a range of borrower types, including salaried employees, self-employed individuals and company directors.

The maximum loan amount varies according to location. In New South Wales, borrowing of up to $1.5 million may be available, while Queensland has a stated maximum of $900,000. Applications for properties in Western Australia are assessed individually.

The lender can also consider income received in different currencies, subject to applicable currency shading. This can be particularly relevant for foreign nationals whose primary income is generated outside Australia. A clear credit history is required, although credit history from the borrower’s country of residence may be considered.

Properties must meet certain criteria, including a minimum apartment size of 50 square metres. The lender can also allow a loan to be divided into more than one portion, providing additional flexibility where the overall borrowing requirement calls for a split structure.

The source indicates a rate of 4.6% plus a 2.25% lender management fee at the time, although rates and fees are subject to change and should always be confirmed before publication or application.

The stated fees included a $550 processing and valuation fee, a loan application fee of 3% of the loan amount, a $2,400 company incorporation fee, progress inspection valuation fees of $695 and lenders’ legal fees of $3,000. These costs should be treated as indicative historical figures rather than current pricing.

For foreign nationals considering property in Australia, international mortgage finance can help identify lenders able to consider overseas income, different currencies and more complex borrower profiles. Eligibility, LTV, loan size, fees and property requirements will depend on the individual application and lender criteria.

Where the proposed transaction involves land or construction, specialist property development finance may also be relevant, depending on the nature and stage of the project.

Disclaimer:
This information is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Lending is subject to status, underwriting, valuation, property suitability, affordability and lender criteria. Rates, fees, LTVs, maximum loan amounts, eligible currencies and availability may change and should be confirmed at the time of application.

Risk Warning:
Property used as security may be repossessed if repayments are not maintained. Property values can fall as well as rise. Borrowers should consider the costs of purchasing and financing property, including applicable taxes, fees, legal costs and currency movements. Where income or borrowing is denominated in different currencies, exchange-rate movements may affect affordability and repayment costs.