Foreign Income for Mortgage loan

I'm doing online business and receive foreign income. I'm an Australian citizen and a resident for tax purposes. I've an ABN and my business is in Australia. I pay US tax as well as Australian tax. I'm currently buying an investment property, however my mortgage broker spoke to the big 4 banks and apparently he came to conclusion that the banks don't accept foreign income. (They might deem it as less stable).

I was wondering if anyone had the same experience? Do the big 4 banks really don't accept foreign income for property loan, even if I'm a resident for tax purposes? My broker suggested me to use another financial company, however the interest loan is slightly higher (about 1% higher) and I would need to pay 1% fee of the total loan.

 

The big 4 accept foreign income in US$

 

My experience has been that big 4 will not give loan on foreign income, try Citi they have in the past for usd income
Who did your broker suggest?

 

Thanks guys. Why would they need to see it in USD? The income is already in AUD, which they can see from the bank statements and tax return. My broker suggested Latrobe.

 

I guess the problem might be proving the income in that case. AUD should be fine - this is Australia after all!

Are you declaring the money here and do you have 2 years tax returns?

 

Hmm ok
Tbh I’m not sure about the need to see it in usd
Or Aud but have found Citi tend to be ok with foreign income but not big 4 or even tier 2 in recent days
This is with 2+ years of income, Citi rates are not that much worse either

 

Yes I declare tax here in Australia and yes I have 2 years tax returns. However the 1st year was smaller, because it was a new business, so we didn't present it. Might be worth to show the 1st year as well, as it was well above average salary.

Thanks lettert, after researching about it a bit more, it seems ANZ, Citi, and HSBC are more friendly towards "foreign" income source. It's kinda weird that a business derive income from overseas are considered not stable in this day and age.

 

I don't think this would be classed as foreign income. But it is an unusual one. ANZ might be good as they can go off one year's tax return.

 

Terryw, do you mean the banks may see it as a normal business income? Most of the posts or websites I searched are about expats, non-resident for tax purposes, or foreign income from dividends. In my case is I live here, have an ABN and pay tax here, it's an Australian business. I mean what more do they want

 

I have gone through this multiple times in similar boat... Aussie banks are the way they are; hsbc might be ok, I’ve found Citi to be the best overall

 

Lettert, thanks again. I'll ask my broker or contact them myself - Citi, hsbc, and anz.

 

Yes normal income