Non-bank lender Firstmac helps expats achieve the Great Australian Dream

Discover how Australian expats are achieving the Great Australian Dream with the help of Firstmac’s expat home loans.

This article was made in partnership with Firstmac.

The Great Australian Dream of owning your own piece of land is a goal for many Australians, but challenges such as housing affordability and sustained economic pressures mean the dream is getting further out of reach. 

The 2021 Census indicated 67 per cent of the population were homeowners (32 per cent owned their home outright, 35 per cent had a mortgage), down slightly from 70 per cent in 2006. 

While the Australian Institute of Health and Welfare said this figure is not too dissimilar to the overall home ownership rate since the 1970s, the ages of homeowners have changed markedly. Significantly fewer younger Australians, aged between 25 and 34, are in the property market now than they were 50 years ago.

And, for the one million Australians living and working abroad, securing a place on home soil in preparation for their eventual return, the challenges related to buying property are further exacerbated. 

Saudi Arabia-based Australian expat Alexander Stead, who has lived abroad since 2017, said buying property in his home country, while still living overseas, was a logical decision.

“Australia will always be home and is still my favourite country. This, combined with the strong property market, made (the decision) a no-brainer,” Mr Stead, a marine biologist and project manager, said.

But circumstances made an already overwhelming experience even more difficult.

“Despite being an Aussie born and bred, I am classified as a foreign investor, which limited my options when I was looking at different home loans,” he said.

 Alexander Stead. Image supplied.

After checking with a few different lenders who provide expat loans, Mr Stead ultimately went with one of Australia’s largest non-bank lenders, Firstmac, and bought a two-bedroom apartment in Blacktown, in Sydney’s west.

“Firstmac’s flexibility (when it comes to) accepting foreign income combined with a reasonable interest rate made this home loan the best option compared to other lenders,” he said.

FirstMac chief commercial officer Marie Mortimer said Australian expats often face significant challenges when trying to secure a home loan through traditional banks. 

“This is primarily due to stricter lending criteria and the perception of higher risk associated with overseas income,” she said. 

As a result, lenders tend to impose higher interest rates or restrict loan amounts for expats and require larger deposits. 

“Additionally, fluctuations in foreign currency and the need for extensive documentation to prove income and financial stability can complicate the process further,” Ms Mortimer said.

“The varying policies among lenders also make it difficult for expats to find favourable terms, often leading them to seek specialised lenders.”

Recognising that there are a range of markets that are being under-serviced by other lenders – including expats, self-managed super fund (SMSF) property investors, and those who require bridging loans – non-bank lenders such as Firstmac are stepping up to cover the gap. 

Firstmac’s Expat Home Loan is similar to its standard home loan, comprising flexible features, such as an offset sub-account with a Visa debit card and full loan redraw facility. The loan puts non-resident Australians on a par with their locally based peers.

“Our loan is designed to accommodate the fact that most expat income is earned overseas where it is subject to foreign currency risk and economic risk that is particular to where they are living. It accommodates this by applying a weighting to that income to reflect their expat status,” Ms Mortimer said.

Mr Stead said securing a home loan from the other side of the world was also made easier by bringing a mortgage broker on board.

“The entire process seemed very intimidating and being paid in a different currency made things more complicated, however my mortgage broker did all the heavy lifting and made the process as easy and stress-free as possible,” Mr Stead said.

Another home loan feature expats often find helpful is being able to manage their accounts at any time of the day or night. Firstmac customers can access their accounts 24/7 via the Firstmac Money website and app.

“(My Firstmac) account is easy to monitor and access through their app anywhere in the world which has made keeping track very easy,” Mr Stead said.

So, despite the common misconception about the challenges expats face in securing a home loan, Ms Mortimer says they shouldn’t give up on the Great Australian Dream.

“Borrowing from overseas to buy an Australian property isn’t as difficult as you may imagine so don’t hesitate to pursue this goal,” she said.

For more information about Firstmac’s Expat Home Loan, click here.