Summary

Living overseas and arranging a mortgage for an Australian property is easier than you think. Our experienced mortgage advisors will help you every step of the way.

The process is the same as if you were residing in Australia. The bank will firstly assess your whole financial situation with a view to obtaining a mortgage approval; the only difference is that we will use your European income for servicing. It all comes down to eligibility, and this is where your mortgage advisor will be able to determine whether you are eligible or not. Pre-approvals may apply depending upon your circumstances, giving you the confidence to bid at auctions or submit an offer to purchase a property with the confidence of knowing that you have the backing of the bank. Once you have approval and have agreed on a price for your property, you will need to notify your London based mortgage advisor. They will then order the mortgage documents, which will be delivered to London for you to sign and return. With your mortgage secured, you will be one step closer to becoming the proud owner of your new property.

General Information:

All applications are assessed on a case by case basis, the same as if you were being assessed in Australia. We look at your whole financial position and determine your affordability, the only difference is we will be using your GBP denominated UK income to determine serviceability.

Normally the Bank will lend up to 80% of the property value (for the purchase of residential properties only) hence you will need to hold a 20% deposit plus your set-up costs. Approval is also subject to your ability to service the proposed loan together with your existing financial commitments.

If you are migrating to Australia within 6 months, we will be unable to take your UK income into consideration, and your application will need to be made once onshore in Australia, as all approvals / pre-approval are subject to Bank valuation and your circumstances not changing.

How do I apply, and what do I need?

To obtain approval for a mortgage or to obtain a pre-approval, you will need to complete the mortgage application, and provide confirmation of income, savings, existing loans, credit cards etc as requested on the application form.

Please note the Bank's approval is subject to Bank valuation and your circumstances not changing.

You may also be required to obtain approval from the Foreign Investment Review Board before purchasing property in Australia.  The Bank is unable to advise on this, so please refer to www.firb.gov.au before making your application.

Rates & Fees:

Indicative Rates:

As at 9th December 2009, lending interest rates are as follows:

* These rates are indicative and subject to change.

General Fees:

• Establishment fee: AUD $600.00*
• Mortgage Service fee: AUD $8.00 per month*
• Additional government charges may apply; this will be covered by your Home Loan Advisor on your application for your loan.
• Wealth Package discounts apply up to 0.7% on Standard Variable Rate Loans & 0.15% on Fixed Rate Loans. The Wealth Package also waives the establishment and monthly loan service fee. For more information on the Wealth package, or general information on loans, please contact our London based office on +44 (0) 207 710 3990, Monday – Friday, 9am – 5pm GMT.

Contact Us:

If you would like further information on how to apply for a mortgage in Australia, or would like to make an application, please contact our London office on +44 (0) 20 7710 3990 or complete this enquiry form:

Home Loan FAQs

What do I get for AUD $350.00 per annum under the Wealth Package?

You can save up to 0.70% p.a. on your variable rate home loan/Investment home loan or Line of Credit and up to 0.15% off your fixed rate home loan/Investment home loan depending on your total home lending balance, as well as enjoy fee waivers and savings on other banking, investment and insurance products.

To be eligible for Wealth Package you must have an initial ‘total home lending balance’ of at least AUD $150,000 and pay AUD $350 per year, debited to any Commonwealth Bank transaction account or Commonwealth Bank Credit Card.

Customers with Low Doc home loans where the amount of the loan exceeds 60% of the value of the security property, as determined by us, are not eligible to apply for Wealth Package.

Read more about the Wealth Package

What is Stamp Duty?

Stamp Duty is a State Government tax payable by the purchaser of real estate based upon the purchase price of the property. Depending on individual State legislation this tax is generally paid prior to or at settlement. You may be able to increase your loan to cover these costs and we can release funds prior to settlement, if required (conditions apply).

First time home buyers may be exempt from stamp duty for purchases up to AUD $500,000 or entitled to a rebate or concession under the First Home Owner Grant Scheme. For further information on exemptions please visit your state's Office of State Revenue website.

What is the First Home Owner’s Grant Scheme?

Eligible first home buyers can receive non-means tested government assistance of AUD $14,000. The scheme is administered by the States and Territories. It covers only the purchase of your first home in Australia. If you are married or living in a de facto relationship, you must make a joint application for the grant with your spouse or de facto. Neither of you can have owned a home previously, whether individually, or with any other person.

You will be eligible to apply if you:

• are buying your first home;
• are an Australian citizen or permanent resident;
• intend to make the home your principal residence, and
• start living in the home within a reasonable time. The payment will be the same regardless of your income.

Read more about the First Home Owner’s Grant Scheme