Changes for Foreign Income Earners

By Matthew Kenworthy | News

Many lenders have recently announced changes to lending policy for overseas borrowers.

These changes include:

  • Reducing loan to valuation ratios.
  • Not accepting applications with foreign income from temporary residents.
  • Increased documentation requirements.

The announced changes only relate to lending policy. Other statutory requirements such as approval from the Foreign Investment Review Board remain unchanged.

Please note this information general in nature only and is subject to change. If you’re after credit advice specific to your situation please get in contact with us.

ANZ Bank

ANZ will not accept applications where the applicant is solely reliant on foreign income to pay back their loan.

Where foreign income makes up more than 50% of their income ANZ won’t lend more than 70% of the property’s value. There are also restrictions relating to cash out and increased requirements for supporting documentation.

ANZs standard foreign income policy applies when their foreign income component is below 50%. There are now stricter requirements for supporting documentation than previous.

These changes do not apply to Australian Citizens living and working overseas.

Commonwealth Bank

CBA no longer accept applications that rely on foreign currency business income. If borrowers can service the loan via other sources they may still be acceptable to the bank. This may include income from Australian currency, or employment or investments overseas.

CBA has also made changes to their foreign currency income policy. They will no longer accept applications from temporary residents earning in a foreign income. They have also reduced the maximum loan-to-valuation ratio to 70%.

National Australia Bank

NAB have reduced their maximum loan-to-valuation ratio from 80% to 70%. This means they will no longer lend more than 70% of the property’s value to those earning a foreign income.

This change doesn’t affect Australian Citizens or Permanent Residents who live in Australia but earn foreign income. It does affect all borrowers who live overseas.


Westpac have announced they are no longer lending to non-residents as per their policy. Australian Citizens and Permanent Residents are acceptable borrowers to the bank. The changes now exclude holders of temporary visas who do not ordinarily live in Australia.

They have also tighetened their policies relating to foreign income. This includes excluding self employed foreign income. They have also reduced loan-to-valuation ratios to 70% in line with the other lenders.


We understand these changes and how they could affect you can be confusing. That’s why we’re here to help!

If you earn income overseas and are looking to borrow money in Australia we can help. Our service is free of charge, and we ask the banks the questions so you don’t have to!

If you’re interest please get in contact with us and we’ll be happy to assist.

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.