Are you (or someone you know is) an Australian Citizen or Permanent Resident AND an Australian expat, looking to borrow to purchase an investment property in Australia?
If you are in a PAYG (salaried) role earning foreign income, depending on the currency you are earning in, you may have the potential to be able to borrow up to 88% Loan to Value ratio + Lenders Mortgage Insurance capitalised on top of the loan.
When you are earning in a foreign currency, provided it is a currency the lender is willing to take, the lender will ‘shade’ your income by a specified percentage. Shading means that the lender will only take a certain percentage of your income. For example, if you are earning USD $150,000, the lender may require the income to be shaded down to 80% ie only take USD $120,000
Additionally, the lender may also specify the Foreign exchange rate required to convert the income to AUD.
This income is then used to determine your borrowing capacity.
Case Study:
We recently assisted a UK based Australian citizen client, refinance their investment property from one bank to another. They had previously had discussions with their existing bank, who had indicated they will not allow our client to get an equity cash out for further investing. This advice from their existing bank meant they had trapped equity that they couldn’t tap into to grow their property portfolio.
Following research and recommendation, we assisted our client in refinance their Sydney based property from their bank to a suitable bank, as a result of which, they were able to access circa $230k of equity, which they are in the process of putting toward purchase of two investment properties.
Do you have an existing property in Australia, and would like to refinance and/or invest further, please get in touch with us on [email protected] or call on +61 1300 97 60 60 to discuss how we can assist you take the next step toward your property portfolio.
To Get Started: Schedule A Chat with the Property Twins Team Join Our Exclusive Facebook Community of 6,000+ Property Investors: Property Addicts Australia Join our Exclusive Search & Select The Right Property in 90 Days 5-Day challenge
Note: Please ensure you always seek specific specific credit, tax, financial, legal or investment advice. Property Twins' Blogs are not a substitute for personal and specific, taxation, financial, legal or investment advice
