Mortgage Broker Tips for Australians

Understanding the Australian Mortgage System

Before choosing a broker, it’s helpful to grasp some basics:

Lenders include banks, credit unions, and non-bank lenders. Each offers different rates and terms.
Loan types vary from fixed-rate to variable, including interest-only options.
Lenders’ Mortgage Insurance (LMI) applies when your deposit is less than 20%. It protects lenders if you default.
Loan-to-Value Ratio (LVR) indicates the loan amount relative to property value. Typically, lenders prefer LVRs under 80%, but some allow higher ratios with LMI.

If you’re a first-time buyer or investing, knowing these terms helps you discuss options confidently with your broker.

What to Expect From a Good Mortgage Broker

A reputable broker will:

Ask about your financial goals, such as purchasing your first home or building an investment portfolio.
Check your income, savings, debts, and employment status.
Clarify the deposit amount you plan to use and its source (saving, overseas funds, gift).
Explain all costs involved, including fees, interest rates, and potential LMI.
Help you understand eligibility—like visa status, residency, or citizenship.

They will also keep you updated on the application progress and advise on timing, such as pre-approval deadlines or settlement periods.

Key Requirements for Mortgage Eligibility in Australia

Whether you're living here or overseas, lenders consider several criteria:

For Australian Residents

Proof of income: Pay slips, tax returns, or employment contracts.
Deposit funds: Savings, gifting from family, or overseas assets converted to AUD.
Credit history: Usually checked via a credit report.
Identification: Valid passport, driver’s license, or proof of residency.
Property details: Address, valuation, and legal ownership documents.

For Temporary Visa Holders and Non-Residents

Visa status: Certain visas (e.g., PR, some work visas) qualify.
FIRB approval: Foreign Investment Review Board approval—mandatory for non-residents or foreigners buying Australian property.
Additional deposits: Often require a larger deposit (up to 30%) due to perceived higher risk.
Source of funds: Must demonstrate legitimate funds, which may include overseas savings.

Important: Banks and lenders have strict rules for non-residents; some banks only lend up to 60% LVR. Always discuss options with a broker experienced with international clients.

Documentation Needed

Organizing your papers beforehand speeds up approval:

Valid passport or visa documents
Proof of income (pay slips, contracts, tax returns)
Bank statements showing savings or overseas funds
Details of existing debts or liabilities
Evidence of deposit source (selling property, overseas assets, gift letter)
Property contract and valuation report

Tip: Keep digital copies ready to upload where applicable.

Choosing a Mortgage Broker: What to Look For

Not all brokers are equal. When selecting yours, consider:

Experience with international clients. They understand overseas deposits, currency conversions, and visa complexities.
Licensing and credentials. Confirm they are licensed by ASIC.
Reputation. Look for reviews, testimonials, or recommendations.
Transparency. They should explain all fees, commissions, and the pros and cons of different lenders.
Availability. Will they work around your time zone or language needs?
Access to multiple lenders. A broker tied to one bank may limit options.

Questions to Ask Your Potential Broker

Before signing on, ask these key questions:

How many years have you helped international buyers in Australia?
Can you assist with different types of visas and non-resident borrowing?
What lenders do you work with, and how do you get paid?
How long does the approval process typically take?
What supporting documents will I need?
How do you help clients with overseas funds or currency conversions?

Remember: A good broker is transparent and willing to educate you on the process.

The Benefits of Using a Local and Experienced Broker

Having an experienced broker can save time and money. They navigate lender policies, including:

LMI requirements: Explaining how LMI can be added or waived.
Interest rate negotiation: Securing better rates through lender relationships.
Government schemes: Guiding first-time buyers on grants and incentives.
Legal and tax implications: Advising on capital gains, stamp duty, or tax residency status.

Real-Life Scenario

John, a Canadian investor, wanted to buy in Sydney. He had savings overseas and was visiting Australia for the first time. A seasoned broker helped him convert funds, find a lender comfortable with overseas income, and explained deposit sources. The entire process took just six weeks, and John was able to settle on his property without surprises.

Navigating Legal and Regulatory Considerations

Foreign buyers must comply with FIRB rules and visa requirements. As of 2025:

FIRB approval is compulsory for non-residents purchasing existing properties.
Timing: Apply at least 30 days before settlement.
Limitations: Restrictions on buying new vs. established properties.
Additional fees: FIRB application fees apply, ranging from AUD 5,800 to AUD 23,800 depending on property value.

Always verify with your broker that all legal steps are followed, avoiding penalties or delays.

Final Tips for International Buyers and First-Time Homeowners

Start early. Gather documents and understand your borrowing capacity.
Convert overseas funds carefully. Use reputable currency transfer services to get competitive rates.
Plan your deposit. Saving for a larger deposit reduces LMI costs and improves borrowing chances.
Explore government schemes. First-home grants or stamp duty concessions can save you thousands.
Stay informed. Policies and rates change; trust your broker's advice.

In Summary

Choosing the right mortgage broker is crucial for a smooth home-buying experience in Australia. Look for someone experienced with international clients, transparent, and knowledgeable about local regulations. Be prepared with your documents, understand your eligibility, and ask plenty of questions.

Remember, a reliable broker will advocate for you, explain your options clearly, and help turn your Australian property dreams into reality.

Good luck on your journey!

Madhu Chaudhuri

Director

With over 20 years of experience as a mortgage broker, Madhu specializes in helping migrants and expats find loans suited to their unique financial situations. Her expertise in navigating complex lending requirements and understanding diverse financial backgrounds has helped countless families achieve their Australian property dreams.