What's the maximum LVR for expats / non-resident for tax purposes wanting to refinance / buy an investment property (not new build) nowadays? Just wanting to know the DEPOSIT % required. Is LVR for us worse than LVR for a company?
Majority of lenders don't accept non residents (I.e no relations with Australia) but expat can go up to 80%, different bank different policy
I think I did a quick summary of expat lending somewhere here on the forum but nevertheless here is a quick run down: CBA: 1. Max LVR 90%- 95% (depending on investment or owner occ) 2.They take 80% of the converted income 3. Limited currencies accepted 4. They will take the full outgoing rent even if lease is both names and this kills the deal in most cases 5. IO lending permitted 6. Company and Trusts Permitted (obviously need to have a director in Aus) 7. They accept overseas rental income ANZ: 1. Max LVR is 80% 2. No IO lending permitted 3. They take 80% of the converted income 4. Company and Trusts Permitted (obviously need to have a director in Aus) 5. They take whoever is on the lease and not the full amount if the applicants partner is on lease 6. Currencies accepted is far greater than most other lenders 7. They do not accept overseas rental income Qudos: 1. Max LVR is 80% 2. They do not lend to HK residents unless its an extremely strong 3. They take 100% of the converted income for most of the strong currencies and 80% of the weaker currencies 4. They accept overseas income 5. They do not accept Trust or Company applications 6. They take whoever is on the lease and not the full amount if the applicants partner is on lease Then there are other lenders like Heritage who are ok in this space (max LVR is 70% for IO and 80% for P&I) and they take 80% of the converted income. Macquarie's expat policy isn't as strong as the other lenders - they do max 70% LVR, they offer their basic product only, must have a POA onshore and must have a minimum net asset position of $500,000. There are other lenders such as Westpac that do expat lending but these are your main/robust lenders.
Are you self employed or an employee? Some lenders will go up to 90% depending on structure, if borrowing in a trust or Company your options will be limited.
Thanks all. Very insightful. So with company structure, LVR varies as well? Or is it pretty much standard LVR across all banks? Company here = shelf just to own the asset Directors overseas working full time (not self-employed). With a chance for one director to be back in Aus soon. We’re tossing up the structure for the next one. Just collecting a rough idea for now.
Lenders won't lend to companies where the directors are living overseas as this could be a breach of the corporations act.
The LVR doesn't vary but some lenders won't lend to company applicants. The issue here is that Qudos has the most superior servicing calculator as they take 100% of the converted income for most mainstream currencies but won't lend to company or Trusts. Also if you have a company at least one of the directors need to be local. Note that all directors will need to be on the loan so their income and liability position come into play.
Thats because companies need to have a local director if the shareholders live overseas - can be problematic, since that local director also needs to sign up a guarantee with no derived financial benefit ta rolf
Here’s the plan we’re starting on: One director Aussie lives in Sydney now. 2 directors (Aussie and Kiwi) are working overseas for now (may be for the next 3 years). We Want to start setting up a company right now. No issue here right? For loans, we will need to look for banks who lend to companies. Directors guarantee required - noted. We’ll approach an advisor for setting up this structure (possible trust & company) and to search for banks who lend to companies. Aren’t the majority of the serious investors / seasoned reno/developer teams operating under companies structure? There must be quite a number of banks who are willing to lend to companies.
I find it odd that you would take legal and structure advice and then go DIY on credit advice. As an aside, your "box" isnt the company/trustee/trust, is the offshore income that excludes most lenders, Most lenders will lend to companies and trusts ta rolf
I think you misread. I said advice for structure AND TO search for loan Those two aspects gotta go hand in hand of course
Our bank just came back to us with a draft pre-approval figure assessing our overseas income + rental income from Sydney properties. We can also draw down some equity from one of our investment properties with them. I need help with whether we continue to borrow in our personal names or is it time to set-up a company/trust now given that we're in this game for the long haul?
