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Expat Home Loan

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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. – PowerPoint PPT presentation

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Title: Expat Home Loan


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

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
    loan queries, 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 dont 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 youll 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
    doesnt 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.
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