Does any one know if local banks will finance overseas investors to purchase Australian properties? if so which banks will provide loans for overseas investors and do rates and deposit requirements vary compared to local investors. thanks
Yes they do – its a huge growth area for most banks….
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
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Yes, many of them will.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yes, there’s lending for citizens, permanent residents, non residents and never stepped in Australia. :)
Different lenders for different scenarios – but this is something we’re seeing increasingly.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Ok thanks. How do they verify income and ability to service the mortgage ? Also what are the LVR requirements ? Any idea what portion of overseas buyers are financed locally. I must admit I was under the impression overseas investors were paying cash given their willingness to outbid locals.
Hi R2D2,
They absolutely do, I’m a Canadian living in Tokyo and I’ve had/have mortgages through HSBC, Westpac, NAB, and ANZ. Depending on your situation your LVR can vary, but 80% is typically the norm. If you’re a premier customer at HSBC (you can get this account but asking your relationship manager in your home country to set it up for you) then you might be able to do slightly better.
Be prepared to spend a lot of time at the Australian Consulate getting documents verified by a consular officer!
Of course, the best and easiest way is to speak to a mortgage broker who has experience dealing with overseas investors.
to follow up: They verify income through payslips as well as bank statements, savings, investments etc. They may need to be translated. Bear in mind that they also calculate their own FX so if you’re paid in another currency they’ll have a buffer on the spread to AUD.
R2D2 Lending terms vary considerably.
We work closely with a couple of Chinese Migration Firms based in Hong Kong who are always seeking finance for their clients both Non Residents and those seeking PR in Australia.
Still get 80% on purchase price / valuation.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi, this is from AFR.com.au on this topic. Looks like ANZ is changing its policy. Anyone thinks this will have a notable effect?
ANZ Banking Group cracks down on dubious offshore mortgage funding from Asia
Read more: http://www.afr.com/real-estate/anz-banking-group-cracks-down-on-dubious-offshore-mortgage-funding-from-asia-20160329-gntrqy#ixzz44zZNvNil
Follow us: @FinancialReview on Twitter | financialreview on FacebookMissing passport pages, salaries being paid by obscure offshore companies and crudely translated supporting loan documents are some of the reasons why Australia and New Zealand Banking Group has announced its latest residential property lending tightening.
ANZ, a bank that has hitched its future to regional growth, was also noticing a sharp increase in the number of loan applications from foreign Australian residents sourcing income from overseas. “They were not what we would call traditional mortgage applications,” a senior ANZ official said.
Foreign payments for the loans are originating from across China, Hong Kong, Malaysia, Singapore and Indonesia. But in many cases the bank, which has an extensive network of retail and business banking contacts across the region, had no record of the companies claimed to be paying the salaries.
ANZ last week told mortgage brokers it will not accept mortgage applications where 100 per cent of income funding the mortgage application is foreign and has tightened lending criteria for other foreign residents.The bank said it had not found any instances of money laundering but conceded there might be a risk.
Read more: http://www.afr.com/real-estate/anz-banking-group-cracks-down-on-dubious-offshore-mortgage-funding-from-asia-20160329-gntrqy#ixzz44zZaXdae
Follow us: @FinancialReview on Twitter | financialreview on FacebookAll they have done is follow the line other lenders went down previously.
Nothing really new in that.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I’m an Australian but live in the USA.
St George restricted us to a LVR of 70% to cover currency variations for our Australian investment properties but apart from that is the same as applying for a loan when we lived in Australia eg pay stubs, letter of employment etc.
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