If you are not a resident of Australia but would still like to buy real estate there you can look forward to having to go through some government red tape. All people who do not live in Australia are subject to a governing body called the Foreign Investment Review Board. This document with approval has to be in place before the settlement of the property.  Applying for this approval is also not a quick process.  Thirty days need to be allowed for guidelines and approval. This means that the first thing that you should do once you have found a property is contact the foreign Investment Review Board. Once that has been signed you can then proceed to a full mortgage application and a gathering of all parties so the deal can be successfully completed.

If you are a foreigner you sometimes need to acquire a vacillator to help you with the finding, purchasing and negotiating for the property. Usually the fees for these are dependent upon what type of acquisition it is and whether or not it is a commercial venture, a personal home or a property that you intend to rent out.

No mortgage in Australia is approved without proof of income.  There are all sorts so of conditions and caveats depending on what you plan to do with the property but of course properties can be acquired for construction purposes.  In general twenty percent of the purchase is required as a deposit and the purchaser in Australia is also liable for the solicitor’s fees.

Australian mortgages are balloon mortgages for the most part. They are Principle and Interest (Repayment) or Interest Only for up to 5 years then Principle and Interest is applied to the amount of the loan. Unlike in America or the U.K. where you can get much longer terms, the maximum term available for a mortgage in Australia is 30 years, but the length can depend on how old the applicant is and other factors. Usually in Australia it is more common to pay higher monthly amounts on a shorter term.

Eligibility for a mortgage can depend on the applicant’s ability to service the loan and receive the potential rental income from the property. You can’t purchase a property in Australia and just expect to rent it out to make the income to pay the mortgage. You will be investigated to see if your own net income can cover the existing outgoings on the overseas mortgage.  If you are self employed then your ability to cover the mortgage is assessed on how much money you have made during the last three years. If you are employed then the total amount of your pay stubs will establish what your income is.

Obtaining an overseas mortgage in Australia is made a little easier by hiring a lawyer there to ease you path for you. There are also many companies online that act directly for people overseas who want to invest in Australian property.