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Foreign Expats - Max LVR for IP / PPOR?

Discussion in 'Property Finance' started by CK_Invest, 13th Oct, 2016.

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  1. CK_Invest

    CK_Invest Member

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    4th Apr, 2016
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    Hong Kong / Sydney
    Hi

    After all the recent crackdowns by the big 4 on foreign sourced income, I am wondering if any brokers or anyone else here has relatively recent experience applying for a mortgage with >70% LVR (with big 4 or other lenders) and foreign sourced income (aus resident)?

    I heard from one of my sources at the big 4 the approval rate is less than 20% these days for foreign sourced income (are there really that many fraudulent cases?!) and the pre-approval check is a lot more rigorous taking more than a month. The Max LVR I was offered was 70% at one particular bank but would like to know any other options out there.

    Cheers
    James
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Hi James,

    Are you an australian citizen living and working in HK?

    If so then CBA is the by far the best lender. They are still doing 95% LVR.

    CBA never lent to pure non residents, i.e. non aussie citizens so their changes weren't drastic. They tightened up a few small things like reducing the LVR for aussie temp residents living and working in Oz from 80% to 70%.

    As to the approval rate - I'm not seeing any issues here specific to non resident. You need to ensure all you provide the lender with all the satisfactory documentation.
     
    Simon Moore likes this.
  3. CK_Invest

    CK_Invest Member

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    Hi Shahin

    Yes I am an aus citizen living and working in HK.

    Thank you for your feedback, great to hear CBA can still do higher LVR's.

    In your experience are the interest rates (assuming same LVR/salary in AUD$ terms) higher than normal aussies working in australia?
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    We haven't seen any discrimination on pricing with CBA however other lenders simply don't do additional pricing and apply the standard discount.
     
  5. Redom

    Redom Mortgage Broker Business Member

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    There are indeed crackdowns, and Shahins spot on, CBA are still the go to lenders in this space.

    Speaking to their senior credit team recently, its relatively business as usual, but they're unlikely to make exceptions, etc to get deals over the line that they may have done elsewhere.

    The main issue with CBA is the limited currency selection - there's only a handful so plenty of expats miss out. Their more unlikely to grant exceptions here for example.

    Your right - many lenders have adjusted their policy downwards significantly - NAB were decent here as they took 100% of income and 80% LVRs not too long ago (a year or so), used net income (big difference for lower taxing economies). Now their at 60% and lower LVRs.
     
  6. charpj

    charpj Well-Known Member

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    Melbourne
    Hi CK,

    Just did a deal with CBA for an expat, High LVRs are great (to 95%), pricing is fine. Just remember they will not take in the negative gearing benefit as you are an expat for servicing. So you will need to service most of the debt off your wage alone, along with proposed rental income.
     
  7. CK_Invest

    CK_Invest Member

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    Thanks all for your useful feedback.
     
  8. Yson

    Yson Well-Known Member

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    apart from CBA, any else?