So, you’re an expat thinking of buying a house in Australia? Good news: It’s doable, but there are a few hoops to jump through. This guide breaks it down for you—visa restrictions, buying steps, finance options, and how to use your property overseas to help. Let’s get into it!
Visa Rules & Foreign Investment Laws
If you’re not an Aussie citizen or permanent resident, you’ll likely need approval from the Foreign Investment Review Board (FIRB) before buying. Here are the key points:
FIRB approval is mandatory for non-citizens and temporary visa holders.
You’re generally limited to new properties, off-the-plan homes, or vacant land (to build on).
If you’re on a temporary visa (like a student or work visa), you can buy a house to live in, but you’ll need to sell it when you leave Australia unless you become a permanent resident.
FIRB approval costs a fee (it’s based on property value, so budget for it).
If you’re an Australian citizen living abroad, you’re exempt from FIRB approval. Permanent residents also have fewer restrictions.
How to Buy a House in Australia
Buying a property Down Under works like this:
Research the market
Start looking at properties online (Realestate.com.au or Domain.com.au are your go-to sites).
Get FIRB approval
Before committing (if needed).
Secure financing
(more on that in a minute).
Hire professionals
A conveyancer or solicitor to manage legal paperwork. A buyer’s agent if you’re overwhelmed or unfamiliar with the market.
Make an offer
Depending on the property, you’ll either negotiate a price, bid at auction, or buy off-the-plan.
Exchange contracts & pay a deposit
Typically 5-10% of the property price.
Settlement
This finalizes the deal (usually takes 30-60 days).
Heads up: Auctions are a big deal in Australia. If you’re buying at auction, have a firm max budget and financing pre-approved.
Finance Options for Expats
Getting a mortgage as an expat is possible but trickier. Here’s what to know:
Australian banks may offer mortgages to non-residents, but they usually lend 60-80% of the property value (meaning a 20-40% deposit).
Interest rates and terms might be slightly higher for expats due to perceived risk.
Proof of income is critical, and it must be in a major currency (AUD, USD, GBP, etc.).
If your income is overseas, banks may discount it by 20-30% to account for exchange rate fluctuations.
Tip: Speak to an experienced mortgage broker who specialises in expat lending to find the best deal.
Using Property Overseas to Fund Your Aussie Home
If you own a home overseas, you have two ways to leverage it:
Sell the property
This can free up cash for your Australian deposit or entire purchase. Just ensure settlement timelines align.
Using equity
It’s unlikely you will find a lender in Australia willing to finance or secure against a property in another country.
Rent the property
You can rent out your house in another country to improve cashflow. But you would want to ensure that currency conversions, tax and any other financial implications make sense before using this in your plan to buy a house in Australia.
"Subject to Sale" Conditions
If you’re buying in Australia while selling a property overseas, include a “subject to sale” clause in your contract. This means your purchase is conditional on the successful sale of your other home.
However, Aussie sellers (especially at auction) often prefer unconditional offers, so it might weaken your negotiating position. Timing is everything—sell first if possible.
Costs to Budget For
Beyond the price of the home, budget for these expenses:
FIRB fees (if applicable)
Stamp duty (varies by state, but can be hefty)
Legal fees (for your conveyancer or solicitor)
Loan application fees (if getting a mortgage)
Building inspections (to avoid surprises)
Tips to Smooth the Process
Get pre-approval for a mortgage to show sellers you’re serious.
Hire local experts (conveyancer, broker, buyer’s agent) to guide you.
Understand the tax implications in both Australia and your home country.
Be aware of exchange rates—a big move in currency can affect your deposit or loan repayments.
If you plan to rent the property out, check rental yields and tax rules for foreign landlords.
Buying a house in Australia as an expat involves a few hurdles, know your visa rules, get expert advice, and plan your finances carefully.
