If you're an Aussie living and working in the United States and are contemplating buying a property back home, whether as an investment property or your future home to move into this blog post is for you.

As an Australian expat, navigating the mortgage scene Down Under might seem daunting, but with the right roadmap, it can be a smooth journey. Here, we aim to provide you with the insights and guidance you need to successfully secure an Australian mortgage as an Aussie expat living and working in the US.

Understanding the Australian Mortgage Landscape

First things first: let's familiarise ourselves with the Australian mortgage landscape. The Australian property market is robust, and as of late, has been experiencing a boom driven by strong immigration, overall stability of the economy, strong rental market and low unemployment rates. According to the Reserve Bank of Australia, property prices have performed positively since the turn of 2023.

An Australian mortgage, or 'home loan', is essentially an agreement with a financial institution where they lend you money to buy a property, and you agree to pay it back, with interest, over a set period (typically 25-30 years).

Eligibility for Australian Mortgages as an Expat

As an Australian citizen living in the U.S., you're still eligible to apply for an Australian mortgage. Lenders will examine your credit history, current income, and overall financial stability.

Here's a case study for you: Let's consider Jane, an Aussie expat working as a project manager in Silicon Valley. Jane maintained a good credit rating in Australia and had a steady income in U.S. dollars. She was able to secure an Australian mortgage for a property in Melbourne. Jane didn’t currently have any debt in Australia, neither a mortgage nor a credit card, however with our team, we were able to secure her a competitive rate on a residential investment property loan.

The Process of Applying for an Australian Mortgage from the U.S.

The mortgage application process might seem tedious, but we've got your back. Here's a step-by-step guide:

1. Start by researching Australian lenders and their expat mortgage policies or engage a professional expat mortgage broker to do so for you.
2. You or your mortgage broker will confirm your maximum borrowing capacity and overall serviceability with the lender, identifying the best solution for you.
3. Gather all necessary documentation, such as proof of income, credit history, and property details.
4. Apply for the mortgage – this can usually be done online or over the phone via your mortgage broker.

Once your application is approved, the lender will provide a loan contract for you to sign and return. Remember, time zone differences might cause minor communication delays, but be patient and persistent!

Choosing the Right Australian Mortgage for You

As an expat, you'll typically have access to the same types of home loans as residents, including variable rate, fixed rate, and split loans. Consider your financial stability, income predictability, and personal comfort with risk when choosing.

For example, James, a 40-year-old Aussie living in New York, opted for a fixed-rate loan. He liked knowing his repayments wouldn't change for a certain period, offering him stability despite his distance from Australia. James felt that the interest rates on offer were quite attractive for a 5 year loan period, and was very comfortable with the peace of mind that this provided.

The Role of Mortgage Brokers

A mortgage broker can be a huge help, especially when you're trying to handle the process from abroad. They understand the process, have connections with multiple lenders, and can assist you in finding the right loan for your circumstances.

Consider Sarah, an Aussie expat in Los Angeles. She hired a mortgage broker who specialised in expat loans. With the broker's help, Sarah was able to compare several options and secure a loan with a competitive interest rate for her Brisbane investment property. In Sarah’s case, she had a base salary, bonus and was also compensated in company stock, so Sarah’s broker at Ally was able to identify a lender that would allow this income to be included for serviceability getting her the property that she truly wanted.

Top Tips for Navigating the Mortgage Process

Now, let's cover some handy tips:

• Do your research: Understand the market and the lending criteria of various banks.
• Keep your credit clean: A good credit history can make a massive difference. It’s important to ensure that you don’t have any store or credit cards, or personal loans in Australia that you may have forgotten about, which can be flagged by conducting a credit check.
• Get pre-approval: Knowing your borrowing capacity can help narrow your property search.
• Stay organised: Keep all your documents handy for a smoother application process.

Conclusion

Securing an Australian mortgage while living in the U.S. can seem like a daunting task. But, with the right approach and guidance, it can be a worthwhile investment. Remember Jane, James, and Sarah? Their success in securing a mortgage shows that with a bit of persistence and planning, investing in the Australian property market is within your reach.

Before you embark on this journey, arm yourself with knowledge. Seek professional advice when needed, and always stay informed about market trends.

Call to Action

If you found this post helpful and you're ready to take the plunge, reach out to a mortgage broker experienced with expat mortgages today. You can also connect with other Aussies in the U.S. who have navigated this path – their first-hand experiences can provide invaluable insights.

Here's to your successful property investment Down Under.

Ally Home Loans Pty Ltd is your ally in finance for all of your home loan, investment property, business and commercial financing needs. With our wide range of lending solutions, expertise in financial planning and investment strategies, and extensive experience in working with both Australian residents and Australian expats, we are your partners for your lending needs.

Book an obligation-free, complimentary consultation here today.

Ally Home Loans Pty Ltd is an Authorised Credit Representative (Credit Representative Number – 494608) of My Local Broker (Australian Credit License – 481374). Important Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.