Do you work outside Australia and want to get foreign income home loan?
The following story will make you realize how Home Loan Experts can get even the most complicated loans approved swiftly.
Summary
| Details | Description |
|---|---|
| Customers | Mr. Tub Hipper |
| Mortgage Broker | Ajar Rajbhandari |
| Purpose | He wants to purchase a property for his wife to live in. |
| Loan Amount | $476,975 (Lenders Mortgage Insurance added) |
| Security | $520,000 |
| LVR (Loan to value ratio) | 90% + LMI |
| Interest Rate | 3.18% p.a. |
| Problem | The borrower is a tax resident of Mongolia. |
| Solution | A suitable lender with flexible foreign income policy and a competitive rate was recommended based on the assessment of the customer’s financial situation and needs. |
| Takeaways | Applying with the right lender is key to approval and getting the best deal based on your situation. |
How it all began
Mr. Tub Hipper is an Australian Expat who works as a construction manager in Mongolia with a superb annual salary of $265,872.
He resides in Australia with his wife, and he is a fly-in fly-out (FIFO) worker.
One day, he felt a spark of interest in a property in New South Wales.
The property is surrounded by dense forest and exudes tranquility. The sun-kissed beaches within a few meters to the lake and its turquoise waters hypnotizes onlookers and Tub.
The property seems to be a perfect owner-occupied home for his wife to live in, so he starts searching for home loan brokers online.
The can of worms
Being an expat, a tax resident of Mongolia, Mr. Tub Hipper had limited lender options to buy a property.
Most lenders do not accept employment in Mongolia regardless of the currency that a borrower gets paid in.
Even if the borrower is Australian, Expat/ Permanent Resident (PR), Australian lenders usually reject the loan application.
He is buying the property as a single applicant. His wife will help to maintain the property but will not be contributing to the loan repayments.
Hence, only his income will be used as the primary source and he will be the owner.
His earnings from his job are paid out to him in USD currency. Someone with a foreign currency income is only liable to borrow around 75% LVR.
But Mr. Tub wanted to borrow 90% LVR.
Other than his base salary, he also makes a big sum of money by working overtime. Most lenders don’t include the income from different sources such as overtime payment as it may be less stable than base income.
Quick fix
Ajar Rajbhandari, a mortgage broker with a knack for expat lending and policies, assessed Mr. Tub Hipper’s situation.
With his expert knowledge of the lending policies of over 40 lenders, Ajar narrowed down the lenders who would be willing to settle the loan with the client.
Mongolia doesn’t have a tax treaty with Australia and lenders generally don’t accept loan applications if they don’t have tax treaties.
Despite the complications, Ajar managed to discover a major lender which lent depending on the currency of the income the borrower got, rather than the location the borrower worked at.
Ajar sent the letter to the lender mentioning that the borrower is a first home buyer with a stable employment and with $158,000 in savings.
Furthermore, Tub had minimal personal debt and good credit history, which appealed to the lender’s interest in lending the amount he desires.
Blessed resolution
Mr. Tub Hipper was overjoyed at getting approved for home loan by Ajar. He finally bought his desired property.
The process of getting a home loan has many steps with many hurdles in between. Tub relates his experience of buying a home to a life’s journey, the correct solutions to problems brings much ease and serenity.
He prays that other borrowers in a similar situation would also find a broker who knows what they’re doing.
Are you in a similar situation? What are you waiting for! Call now at 1300 889 743 or fill out our free assessment form.