top of page
  • Writer's pictureAlison Wong

Mortgage Methods and Mortgage Ratios for Buying Australian Properties in 2023

Updated: Apr 11

Applying for a mortgage is something that almost everyone who buys a house in Australia has to go through, because few people want to buy a house in full cash (except, of course, the very wealthy). This is mainly because using a mortgage as leverage allows you to borrow future cash flow income to purchase your desired property.

Since investment in real estate in Australia is very stable and considerable, from an economic point of view, buying a property in Australia with a mortgage is also a good deal. Even if the investor's bank deposit is enough to pay most of the house payment or even the full amount, considering taxation, cash flow and other factors, most people usually hope to complete their Australian real estate investment by applying for a mortgage.

Can overseas people take out a mortgage in Australia?

Yes - not only Hong Kong people, but any overseas people can apply for mortgages when buying a property in Australia. At present, there are 3 ways to explain the mortgage when overseas people buy Australian properties:

  • Apply for a mortgage directly from a financial institution in Australia Since 2016, major banks in Australia have successively stopped lending to overseas people, but this does not mean that investors cannot apply for mortgages in Australia. In contrast, there are many regulated lenders in Australia that can provide loans to non-residents (overseas income). Like banks, these institutions are regulated by the Australian government, and investor’s loan applications also need to be evaluated and approved. Some institutions have loan managers to guide them through the entire process until the transaction is completed.

  • You can apply for a mortgage from a local overseas bank in Australia

At present, many overseas banks based in Australia can handle mortgages for overseas people (such as HSBC Hong Kong etc). Moreover, the interest rates of these banks are almost equivalent to those of Australian local banks, but the requirements for customer’s funds will be relatively high. For specific requirements, please consult with the staff of each bank.

  • You can apply for a mortgage in Hong Kong to buy an Australian property

As the future trend of property prices in Hong Kong is not optimistic, there is little chance of upward movement. In order to get more returns, many people will choose to cash out the property they live in and buy property in Australia instead. The rent collected can help supplement the supply. In addition to saving money, you can earn considerable returns when property prices in Australia rise in the future.

What is the mortgage ratio for buying a house in Australia?

The specific Australia mortgage ratio for buying a property here depends on the specific financial products of the lending financial institution or bank chosen by the investor. The highest possible mortgage ratio is 70-80%.

Investors who buy property in Australia with a mortgage can also enjoy various types of repayment methods and interest rates (including: fixed interest rate, floating interest rate, principal, and interest repayment or only interest repayment but not principal repayment, etc). Australia’s unique "interest only repayment not principal" mortgage repayment method has greatly enhanced investor’s cash flow.

In addition, the mortgage products of some institutions in Australia have an offset account function. If you have excess funds, you can directly offset the interest on the loan by depositing it in the offset account, reducing the cost of the loan in disguise.

Simplified process of Australian property mortgage application

1. Select a mortgage product:

Select suitable lending institutions and products according to your own situation and loan purpose.

2. Submit supporting materials:

According to the bank's list of required documents, submit the application form and various supporting materials. Each bank or financial institution requires customers to provide different Australian property mortgage application materials, so customers need to figure out what materials need to be submitted, which can effectively avoid submitting unnecessary materials, thereby improving the efficiency of mortgage approval.

Here are some common Australian property mortgage application materials:

  • A identity document

  • Usually a driver's licence or passport will suffice

  • Overseas customers need to provide ID card

  • B income situation

  • Full-time or part-time employment income: One or two recent pay stubs

  • Rental income: Lease contract or rent statement

  • Self-employed persons: 2 years of tax returns and Notice of Assessment

  • C Assets

  • Bank balance certificate

  • D Liabilities

  • Statements of all recent mortgages

  • All recent credit card statements

  • Recent other loan statements

3. Transfer:

Complete the transfer preparation and complete the Australian property mortgage settlement on the day of real estate delivery.

For more knowledge about buying property loans in Australia, please watch my video:


Alison’s Story

Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.

When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.

So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.

Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.

Alison Australian real estate information platform

The original intention of Miss Alison to establish is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.






bottom of page