A foreign income home loan, also known as an expat home loan, is designed for borrowers who earn all or most of their income in a foreign currency and want to purchase or refinance property in Australia. This includes Australian residents employed by overseas companies, fly-in-fly-out (FIFO) workers paid in foreign currency, contractors engaged by international organisations, and investors with income sourced offshore. Earning an income in a foreign currency can add complexity when applying for a home loan in Australia. Many borrowers assume overseas income will prevent them from qualifying for a mortgage, particularly when dealing with traditional lenders. In reality, a growing number of non-bank lenders will consider foreign income, provided it meets specific criteria around currency, employment stability, and documentation.
Before applying for a foreign income home loan, it is important to understand the key factors lenders assess. These factors can impact whether your application is approved and how much you can borrow. For example:
Eligibility is assessed using a combination of your residency, financial situation and credit history. Most lenders that accept foreign income follow similar criteria, which includes:
Not all overseas income can be used for a foreign income home loan. Lenders apply specific rules around acceptable income types:
To apply for an expat home loan using foreign income, lenders will generally require the following documents:
All supporting documents must be provided in English or translated by a NAATI certified translator. Lenders will assess your full financial position, including income, expenses, assets, liabilities, credit history, and ability to service the loan, before approving an expat home loan with foreign income.
Foreign income home loans are assessed differently to standard income home loans due to the added complexity of overseas income and foreign employment verification. The table below highlights the key differences in loan processing, assessment, and borrowing requirements.
When assessing applications, Australian lenders focus primarily on the country where income is earned. The country determines how income is assessed under lender risk, compliance and verification frameworks, including the reliability of financial documentation and regulatory standards. Foreign income lenders typically work with applicants from a wide range of countries, including but not limited to Brazil, Brunei, Canada, China, France, Germany, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, Mexico, New Zealand, Philippines, Qatar, Saudi Arabia, Singapore, South Africa, South Korea, Switzerland, Taiwan, Thailand, the United Kingdom, the United Arab Emirates, the United States and Vietnam. If your country is not listed above, eligibility may still be possible. Each application is assessed on its individual merits, with lenders considering the country where income is generated, the ability to verify income and employment, and the overall financial position of the borrower. Speaking with a Yard Loan Consultant can help clarify which options may be available based on your specific circumstances.
Foreign income is typically converted to Australian Dollars using a lender’s determined exchange rate or the currency spot rate. Lenders would then also apply income shading (discounting) to allow for currency fluctuations. For example, if you earn USD 150,000 per year, a lender may first convert this to AUD using the spot exchange rate and then apply an income shading of 20%. As a result, only 80% of the converted AUD income is used when calculating borrowing capacity.
Foreign assets, such as overseas property or savings, can be included in your financial position. For instance, a rental property held overseas may be included, with a shaded rental income while the associated existing mortgage debts will also be included. Savings held in foreign bank accounts may also be recognised, provided ownership and source of funds can be verified.
Using foreign income to obtain a home loan can involve additional considerations such as currency conversion, foreign employment and income verification, and the provision of overseas translated documentation. The process typically follows these steps:
Foreign income lending in Australia comes with additional assessment requirements, and not all lenders assess foreign income the same way. Yard reviews your circumstances upfront and guides you through your loan application based on your country location, income type, and residency status.
By speaking with a Yard Loan Consultant, you can obtain an estaimte of your borrowing capacity, understand how your foreign income may be assessed, and receive an overview of the documents and next steps required for your situation. Submit an enquiry to get tailored guidance before commencing a loan application.
Yes. You may be eligible for an expat home loan if you are earning foreign income and living overseas.
An expat home loan is designed for Australian citizens, New Zealand citizens, and permanent residents who live abroad and want to buy, refinance, or access equity in Australian property. These loans are tailored for borrowers earning foreign income, whether through salaried employment or self-employment overseas.
Eligibility and lending terms depend on factors such as your residency status, income type, currency, and country of employment, as lender policies can vary. Speak to a Yard Loan Consultant to get personalised guidance today.
Yes. Typically, all overseas liabilities need to be disclosed as part of your application. Lenders assess your full financial position, including any foreign debts, when determining your borrowing capacity.
In many cases, yes. How the income is assessed depends on where the employer is based, how the income is sourced, and your residency and tax status.
Deposit requirements vary by lender and your individual circumstances. Borrowers using foreign income may be required to contribute a higher deposit compared to standard residential loans. In many cases, eligible borrowers may be able to borrow up to 80% LVR, which means a minimum deposit of 20%, depending on factors such as residency status, income type, currency, and country of employment.
Yard helps eligible expat borrowers buy, refinance, or invest in Australian property while living overseas, using foreign income to access flexible lending options. Speak to a Yard Loan Consultant to see how much you may be able to borrow and what loan product may be suitable for your situation.
Lenders typically apply their own exchange rates when converting foreign income to Australian dollars. A buffer is typically applied to account for potential currency fluctuations.
You can get started in minutes by completing an online application here. A Yard Loan Consultant will reach out within 24 hours. Simply tell us about the property you’re purchasing or refinancing and provide a quick overview of your income, employment, assets, and expenses.
Once submitted, your dedicated Loan Consultant will review your requirements and guide you through the next steps. You’ll then upload your supporting documents through our secure portal, and we’ll assess your application. The assessment typically takes two business days, and once approved, you’ll receive and sign your loan documents online. We’ll then coordinate directly with your conveyancer to complete the settlement. Read more on how to apply for a Yard loan here.
Foreign income is generally converted into Australian dollars using the lender's approach and methodology. Lenders assess the income using documentation such as payslips, tax returns, accountant letters, or bank statements.
The currency accepted is generally tied to the country where the income is earned, and some lenders may restrict income from higher-risk or less stable jurisdictions. It is best to confirm the eligible countries and currencies with the lender before applying.
Applicants are typically required to provide passports, visas, income documentation (salaried or self-employed), bank statements, and an overseas credit report. Additional documents may be requested based on your employment type.
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