Temporary and non-residents who intend to borrow from Australian financial institutions will usually have on average a maximum loan to value ratio of 95% if borrowing less than $1 million or up to 80% if borrowing in excess of $1million. In simple terms, your loan to value ratio is reached by dividing your required loan amount by purchase price.
If your intention is to borrow more than 80% of the property value, then apart from covering the cost of lenders mortgage insurance you will also have to prove that you are in stable employment with strong assets and at least 3% genuine savings.
How much can I borrow
Your borrowing capabilities will vary between lenders and you will often find that an experienced mortgage broker can negotiate a better finance deal on your behalf. To get a more precise assessment of how much you can borrow from Australian financial institutions submit the brief form below and we will contact you at a time that is convenient for you or call us on +61 2 9249 3739.
Home loan costs
If you are borrowing more than 80% of the purchase price, you will need to pay lenders mortgage insurance (LMI). This is a one off payment that is made to the lender (or lender’s insurer) and is deductible at the time of settlement. Please note that LMI is meant to protect the lender from any loss that may occur as a result of a default from a borrower.
Other costs that you should be prepared to meet include:
- Lender fees such as loan application fees, loan establishment fees, service fees, valuation fees, account transaction fees
- State government fees and taxes like stamp duty, mortgage registration, registration fee and mortgage stamp duty.
- You will also need to budget for the services of a conveyance or solicitor, building and structural inspectors and pest inspectors.
FIRB approval
Temporary and non-residents require evidence of approval from the Foreign Investment Review Board before formal loan approval can be issued.
For more information on Expat Home Loans call +61 2 9249 3739
