Required  documents for expatriates to buy a property in Australia

 For expatriate home loans there are specific home loan documents to purchase your property in Australia.  These documents help your expatriate home  loans specialist attain formal pre-approval from a local Australian bank.  This approval then provides you confidence of the price range for your property in  Australia.

 The key home loan documents include;

  • 6 months bank statements
  • 2 recent payslips
  • 2 recent tax returns
  • Any liabilities for example statements for existing loans
  • Assets for example a car or existing property
  • Identification form with photocopy of passport certified by an Australian embassy official.
  • Contract of sale if property already found

 The majority of the above information can be scanned and e-mailed which can speed the process up from overseas.  Once you have provided your  documentation it is used to support the mortgage application with the bank.  This can be electronically submitted to the bank using a mortgage broker’s  integrated software. 

 The bank will review documentation to verify the income that has been provided is correct.  If there are any significant debts that that will be questioned by  the bank which may involve an explanation or further documentation

 The cash deposit and/or equity for a property you already own will be used by the bank to calculate the loan to value ratio (LVR %).  For example if you have  documentation to show a cash deposit of $120,000 for a $600,000 loan your LVR will be 80%.  If in the same example your cash deposit is $60,000 your LVR  is 90%.

 It is important to go through the correct home loan document process submitting your documentation to attain formal pre-approval.  Some brokers will  confirm your loan approval in a short period of time however there is no legal backing for this type of approval.  Also there is the risk that you may purchase  a property and the bank does not formally approve your loan which can cost you financially.

 Contracting Overseas?

 If you are contracting than there are additional documentation requirements.  Local Australian banks require two overseas tax returns for contractors. You  will need at least one year’s overseas tax returns to be considered.  Your accountant will need to write a letter to project your following year’s income based  on your existing contract.

 For further information at no cost or obligation contact www.expatriatehomeloans.com.au