Expat Home Loan

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Expat Home Loan

• http//expathomeloan.webs.com/

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• 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. 

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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. 

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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.

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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.

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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.

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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.

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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.

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• 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.