If some or all of your income is earned overseas, lenders differ widely on whether they count it, how much of it they count and how much they will lend. We match the income to a lender whose policy fits, and present it the way a credit team needs to see it.
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Lenders convert foreign income into Australian dollars, then decide how much of it to count. Many lenders apply a reduction to allow for currency movement, and policies vary on how large that reduction is.
The main factors a lender weighs:
Some lenders also recalculate overseas income as if Australian tax applied, which reduces the figure further.
How your income is classified can matter more than how much you earn. The same salary can be declined as self-employed foreign income at one lender and accepted as foreign PAYG income at another.
In our overseas income case study, a professional athlete earned $206,433 a year in Japan, paid by invoice and lodging his own tax there. That was 64% of the couple's income. Most lenders viewed him as self-employed and could not accept it.
We workshopped the income with a lender's credit team before submission. They agreed to treat it as foreign PAYG income, converted with the lender's exchange rate calculator to $17,203 a month.
Many lenders keep a list of accepted currencies, commonly major currencies such as the US dollar, British pound and euro. Some currencies are not accepted at all, and accepted lists differ between lenders and change.
Evidence is what wins these applications. Lenders commonly ask for:
In the case study, the file included his passport, a work ID card showing his entitlement to work in Japan, ten months of invoices, ten months of salary credits on NAATI-translated bank statements, and his employment contract.
Many lenders that accept foreign income limit borrowing to around 70% of the property value, while some go higher. Policies vary and change.
| On a $1,200,000 purchase | At around 70% LVR | At 80% LVR |
|---|---|---|
| Loan amount | $840,000 | $960,000 |
| Deposit before costs | $360,000 | $240,000 |
In the case study, the couple received a fully assessed pre-approval of $960,000 at 80% LVR. That avoided the need for another $120,000 in cash.
Living costs for buyers with overseas income rarely fit a single-household budget. Lenders still need a realistic picture.
Total income relied on for servicing was $322,504. Existing debts overseas, such as car loans or credit cards, are usually counted too, so list them up front.
Harder to place does not always mean no. It usually means more evidence, a smaller loan or a lender with a narrower policy.
Foreign investment rules can also apply to some buyers of residential property, depending on citizenship and visa status, and some buyers need approval before they purchase. We do not give immigration or foreign investment advice. Check your position with the Foreign Investment Review Board at firb.gov.au, or with a lawyer, before you sign a contract.
A couple buying their first home for $1,200,000 earned 64% of their income in Japan, paid by invoice, which most lenders treated as self-employed foreign income. We had $206,433 of overseas income accepted as foreign PAYG and secured a $960,000 pre-approval at 80% LVR, avoiding $120,000 of extra cash.
Read the Case Study →Debt recycling relies on interest deductions on the investment split. Those deductions generally only help to the extent they reduce Australian taxable income, so your tax residency matters.
If you or a partner may change residency, or earn mostly offshore income taxed overseas, the deduction may be worth far less than expected. A registered tax agent confirms your residency and how deductions apply before you start debt recycling.
On the lending side, we set up the home loan with a separate split and an offset from day one. That keeps private and investment borrowing apart if a strategy suits you later, and our loan structure service covers how the splits are built.
Tell us where you are and what you want to do next. We will tell you what the lending side looks like, including whether debt recycling fits later.
Request a Call With Alex →We look at your contract, payslips or invoices, tax position and currency before choosing a lender.
Where the income is unusual, we agree its treatment with the lender before you apply.
Translated statements, contracts and ID are lined up so the file reads clearly the first time.
A fully assessed pre-approval lets you make offers knowing the income has already been accepted.
Often yes, though lenders differ widely. Some do not accept foreign income at all, some accept only certain currencies or employment types, and some reduce the income they count. How your income is paid and documented usually decides which lenders will consider it.
Exchange rates move, so a salary that converts well today may be worth less in Australian dollars next year. Many lenders apply a reduction to allow for that risk, and some also recalculate the income as if Australian tax applied. Policies vary between lenders and change over time.
Many lenders that accept foreign income limit borrowing to around 70% of the property value, which means a deposit of around 30% plus costs. Some lenders go to 80% in the right circumstances. The difference on a large purchase can be well over $100,000.
Documents that are not in English generally need a certified translation. In Australia this is commonly done by a NAATI-certified translator. Payslips, bank statements, contracts and tax records are the usual documents that need translating.
Foreign investment rules can apply to some buyers depending on citizenship and visa status. We do not give foreign investment or immigration advice. Check your position with the Foreign Investment Review Board at firb.gov.au, or with a lawyer, before signing a contract.
The lending can often be structured, but the tax benefit depends on your Australian tax residency and how much Australian taxable income the deductions can reduce. A registered tax agent should confirm your residency and the likely benefit before you start.
How higher marginal rates change the maths.
Read more → GUIDEThe use test behind investment interest deductions.
Read more → CALCULATORSee your loan-to-value ratio at different deposits.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
Alex, Jess and the Kingfisher team were second to none and their process from start to finish was faultless. As a self-employed business owner, it can be difficult to obtain finance at the best of times. The Kingfisher team made this an easy and efficient proposition and their continued transparent and efficient communication ensured we were kept up to date at all times. Highly recommend them for your finance needs!
Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
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