Australian Loans for foreign income applicants

Home mortgages for borrowers with non-Australian dollar income are harder to come by these days, since most lenders stopped lending to these borrowers around mid 2017.

The whole lending industry changed in May 2016, as recognised by prominent business newspaper Australian Financial Review when it wrote an article entitled “Non-bank lenders and brokers told to stop loans to foreign borrowers”.

Reasons for the discrimination appeared to arise from fears relating to fraud and money laundering, originally sourced to hundreds of loan applications with false documents coming from outside Australia. Most banks did not find fraud but only indicated ‘there might be a risk’.

You can read that article here.

Not long after directions came from industry regulator APRA: the number of investor loans and portion originating from outside of Australia need to be reduced, to curb these new risks.

Daniel Shillito

Aussie Finance and Property

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