In Australia, you will find that many individuals take out a loan to purchase a home. However, you’ll be surprised to know that Australians living abroad also do the same thing! The only problem is that borrowing money while abroad to purchase a home can be challenging than if the individual were living in the country.
Are you an Australian living overseas and interested in obtaining a loan to own a home? If so, you will be looking for something called the Expat Foreign Owner Loan. Here are some tips you can follow to make obtaining one easier to do:
1. Look For the Best Loan Offer
You may have heard of this tip time and time again, but it cannot be stressed enough how important it is to compare one loan offer to the other. Even if you find an outstanding loan on your first try, it never hurts to see another loan offer.
Different providers offer different loan features, interest rates, and more. By comparing these factors against each other, you can find the best loan to help you obtain the home while still saving as much money as possible.
2. Maintain a Good Credit Rating
If there is any factor a loan provider will look at when deciding what offer to give you, it would be your credit rating. Your credit rating will be one of the most significant factors that will affect the types of loans accessible to you, along with the chances of getting a loan approved.
As such, do whatever it takes to maintain a good credit rating. If your rating is far from that, then spend the time to improve it first before looking for loans.
3. Update Your Financial Information
If you are self-employed, you will need to ensure at least the previous two years of financial statements are prepared. However, note that some banks will require longer than two years, so take into account how they will assess your finances. Get an accountant to help you out, and if you do not have one, hire one!
That said, many banks and lenders in Australia will not accept your statement unless it has been lodged with the ATO (Australian Tax Office). Be sure to lodge your statements with the ATO to be safe.
4. Know How You Will Be Checked
As we just mentioned, different banks will have different ways of assessing you. An example of this is how long into the past they will look into your financial statement to determine whether you can pay off the loan. As such, do a little research on the lenders you want to work with and ensure you meet their criteria.
The tips discussed above will help you secure a home loan despite not being in your home country. With things like maintaining your credit rating down to knowing how the lender will assess you, the more you are prepared to obtain a loan, the more successful you will be!
With that in mind, if you are still having trouble obtaining a loan, we highly recommend reaching out to a mortgage broker for help! They can help identify the right home loan for you that fits all your needs and circumstances to ensure the highest chances of success.
Wealthy You is an Australian Mortgage Company offering a large variety of mortgage solutions to meet any needs. If you are looking for the best home loans in Sydney, work with us today!