Any Lenders accept foreign rental income?

I am wondering if any lenders accept foreign rental income to assess serviceability? what supporting doc they require?

 

Last time I looked at this it was Latrobe.
On top of my head, they wanted bank statements to confirm deposits. Lease agreement of some sort and your credit report from that country.

Updated- also depends on what currency we are talking about.

 

Thanks Tony. What happens if no credit report agency is existing in foreign country . Sound hard.

 

I would presume you can't use it the rental income.

 

Westpac accepts foreign rental income and requires 6 month rental income statement. Wondering if foreign bank statement is ok. Otherwise, I have to remit money to Australian bank for the next 6 months.

 

Depends on what currency also. And needs to be translated by a NAATI approved translator with westpac.

 

There are a couple of other lenders that accept it as well, what docs they require varies. Also the type of currency determines how it's shaded for use in serviceability calculations.

 

Plenty of lenders accept foreign rental income, but they'll all shade it based on their specific policies on whatever currency it's in. This means they'll only use between 50% to 80% of the income, then apply the additional shading they'd apply to Australian rental income. Ultimately the serviceability benefit of the foreign rental income will be negligible.

Lenders will require a lease agreement and definitely bank statements to confirm the income. No problem if they're foreign, but some lenders will require certified translations that you'll have to pay for.

The next think they'll ask for is confirmation that there's no debt against the property. Since you can't prove something that may not exist, the equivalent of a credit report from the other country might be the only way to confirm this. It's possible a title extract might work, but this is speculating.

Another way to get around a lot of this might be to produce some foreign tax returns.

In most cases the benefit provided by the foreign rental income isn't going to be worth the hassle. If there's any debt against the property, it would likely be a net loss in serviceability terms.

 

Thanks Peter, Lindsay and Tony.
It seems to be hard.