Mortgages in Australia: guide for expats in 2026

Understanding mortgages in Australia: Overview

If you’re thinking of buying Australian real estate it helps to have a basic understanding of Australia’s home loan market.

• 67% of adults in Australia own their own home, of whom around 35% have an outstanding mortgage to pay according to recent census data
• Average live mortgage rates in Australia are around 5.5% for new loans, with some differences depending on tenure and home loan type
• Australian banks offer a range of mortgage types for residential and investment purposes, as well as construction loans
• Generally home loans in Australia are either fixed rate or variable-rate mortgages – fixed rates have the same rate for a defined period before reverting to the standard bank rate, while variable rates change in line with the market
• Expats and new arrivals in Australia can take a mortgage from an Australian bank, but the options may be more limited compared to long term and permanent residents, and Australian citizens
• Some expats need permission from the Foreign Investment Review Boardto buy property in Australia – if you are not a permanent resident and do not have a spouse who is an Australian citizen confirm you can buy a place before beginning the mortgage process

This guide is for information only and does not constitute advice. Seek specific guidance from a licensed mortgage broker or another professional before committing to an Australian mortgage.

Can you get a mortgage in Australia as a foreigner?

Yes. There’s no legal reason why you can’t get a mortgage in Australia as a foreigner.

Not all home loan products may be available to you if you’re not an Australian permanent resident. However, some banks do still offer mortgages to people on temporary visas so if you shop around you’ll usually find a suitable product. You can also apply through a specialist broker which can be an easier route to compare your options as an expat buying a property in Australia.

Bear in mind that there are some restrictions on foreign ownership of property which you’ll have to navigate before you can consider buying a property in Australia as a foreigner.

Financial requirements for a mortgage in Australia

When you apply for a mortgage in Australia you’ll need to check the eligibility requirements thoroughly to see if the product is right for you. Once you’ve found a suitable loan you can look into the documents needed to prove your financial status and credit history makes you a good candidate for the specific product.

Banks set their own rules about eligibility and creditworthiness, but you may find you need to provide documents and information such as the following:

• Proof of your identity – such as your Permanent Resident Visa Grant Notice or passport
• Proof of your income – you might need pay slips or details from the Australian Taxation Office showing your income and tax statements
• Proof of your assets – bank statement are usually needed to check you have enough for a downpayment and to check affordability
• Proof of your outgoings – you may be asked for recent statements of your savings, investments, loans, credit cards and lines of credit

Once you have a home loan approved you’ll need a way to pay your upfront fees, deposit and regular repayments. Using Wise can be a cheap option if you’re paying for your Australian mortgage from a different country. Wise uses the mid-market exchange rate and low, transparent fees for fast secure transfers which are deposited right into your Australian bank account.

Mortgage rates in Australia in 2026

Banks and mortgage providers offer both fixed and adjustable rate home loans which have variable rates depending on the term and other factors. This means that shopping around is still well worthwhile to find the best mortgage deal based on your unique needs.

At the time of research (January 2026), the average new loan mortgage rate in Australia is 5.5%. Rates had been very low but started to rise in 2022, peaking at over 6% towards the end of 2023. Rates seem to be stable and falling slightly, but it’s important to keep an eye on the market if you’re planning on buying soon, so you know what to expect.

How much can you borrow for an Australian mortgage?

Different banks and providers will use slightly different metrics to decide on the value of a loan they may offer you. They’ll usually take into account factors like:

• Deposit size – you’ll need a deposit of 5% – 20% depending on the property and loan details, which dictates the maximum mortgage available based on property price
• Income and outgoings – how affordable your repayments will be based on other commitments and outgoings
• Stress testing – banks may check how affordable your mortgage would be if rates rise by up to 3%
• Your credit score – banks may be more inclined to offer higher loans if you have a solid credit score
• Mortgage type and tenure – loans have their own criteria which can also influence the amount you’re able to borrow

Bear in mind that banks may also take into account personal factors like your employment status, residency and legal right to reside in Australia when calculating the maximum amount of loan you can get.

Australian mortgage calculator

There are several different types of tools out there which can help you figure out what mortgage you may qualify for, and what your costs would then ultimately be:

• Commbank borrowing calculator and repayment calculator – example of a bank’s own mortgage calculator tool, available from all major Australian banks based on their own specific mortgage rates
• MoneySmart calculators – government backed website which offers a calculator you can use to estimate the costs of any mortgage based on the interest rate quoted

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How to apply for a mortgage in Australia in 2026

You can apply for a mortgage in Australia from a bank, or through a broker who is able to connect you to a range of mortgage providers.

Before you apply you’ll want to make sure that the bank you’ve selected supports mortgages for properties of the type you want to buy. You’ll then also have to check eligibility based on your residency, income and available downpayment.

Once you’ve selected a bank a home lending specialist will be assigned to help you navigate the application process. You can then submit your application including your supporting documents, and the bank will complete a credit check if needed. Once your loan is approved you can proceed to closing on your new property.

Through a bank

Different banks have their own rules as to which customers they can support for an Australian mortgage. Here are the mortgage and home loan landing pages for a few major Australian banks to get you started:

• Commbank
• Westpac
• Macquarie

Through a mortgage broker

You can also look for a mortgage through a mortgage broker through ASIC’s Professional Registers Search. Look in the following lists to find the right person for you:

• Credit Representative
• Credit Licensee

Whichever broker you select, make sure they’re properly licensed by ASIC.

Building credit for better mortgage terms

Some banks can use your foreign credit history to check your suitability for a loan. However this is not always an option. If you can’t use your home credit score you may need to build an Australian credit history before applying for a mortgage.

You can use low limit and low rate cards to help increase your credit score – be careful to spend moderately and always repay on time to get the best outcomes. You can also ensure your bills are in your name as this can help to improve your local credit. Check your credit score with a provider like Experian regularly to know how you’re getting on. Improvements to your score can start to show through in around 6 months.

Mortgage fees and costs in Australia

The costs of your mortgage can vary and may include multiple different fees. Here are some to know about:

Types of mortgages in Australia

The key difference between different types of Australian mortgage is the approach to setting interest rates and repayments:

• Fixed rate – rate and therefore repayment amount is fixed for an agreed term
• Variable rate mortgages – rate and repayment rate can change at any time

Within these key mortgage types there are also different repayment policies – either paying back interest only, or interest plus principal.

Fixed rate

A fixed rate mortgage sets the rate you’ll repay for a certain length of time – often from 3 years to 5 years.

Variable rate mortgages

Adjustable rate mortgages do not have a fixed interest rate. Rates can go up or down which means your repayments may also change.

Mortgages for investment properties

Buying a property is a popular way of investing in Australia. Bear in mind that you need permission from the Foreign Investment Review Board to buy a house or land in Australia if you are not a permanent resident or meet another of the eligibility criteria, such as being a New Zealand citizen with a relevant visa or buying a house with an Australian spouse.

Construction mortgages

Construction mortgages are also available for people who intend to build their own property. Loans are paid out in stages to follow the build process and ensure money is released when it’s needed for the construction to proceed.

Help getting a mortgage in Australia

You may be able to get Australian government backed mortgage and loan assistance – although this is not normally available if you’re not already a permanent resident of Australia. Here are a couple of options to look into:

• Australian Government 5% Deposit Scheme – access a home loan with as little as 5% deposit, or even 2% if you’re a single parent or guardian of a child
• First Home Super Saver Scheme – save extra in your super and make a withdrawal to buy your first home, often with preferential tax treatment
• Australian Government Help to Buy Scheme – get 30% – 40% of the home’s value from the government, and share ownership in the property
• First Home Owner Grant (FHOG) – Each state and territory has different grants and conditions

If you’re looking for good ways to manage the costs of your mortgage when paying from abroad, check out Wise. Wise can offer low cost international payments which use the mid-market rate which can help you cut out unnecessary fees and pay less in the end.

Taxes and tax relief on mortgages in Australia

You will need to pay some ongoing costs when you own an Australian property. Property taxes apply which can depend on where you live and the property type.

There’s not usually any tax relief for mortgages in Australia unless you’re renting out your property and therefore paying income tax on the rental you earn. In this case you might find that some costs associated with the property can be tax deductible, such as interest on the mortgage.

At the time of writing there’s a proposal that would allow first home buyers to deduct some of the costs of their mortgage for tax purposes, but this is not yet live.

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Do you need property insurance to get a mortgage in Australia?

You may choose to get insurance in Australia for a number of reasons – and in some cases, certain types of insurance are mandatory.

If you’re buying a property with a low deposit, Lender’s Mortgage Insurance (LMI) is often mandatory. This can apply if you have a mortgage of under 20%. Your bank will let you know what’s needed based on your specific loan agreement.

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How do mortgage repayments work in Australia?

When you arrange your mortgage you’ll choose to either repay interest only or interest and principal on a weekly, fortnightly or monthly basis depending on the loan type and your preferences. If you pay back only interest you must be able to repay the principal borrowed at the end of the mortgage term.

Some banks also let you make overpayments on their mortgage which can help reduce the term of your loan. This can have cost benefits – even a small overpayment can reduce the amount you may pay for your Australian home overall. Bear in mind though that banks often put limits on the amount of overpayment you can make before you pay a penalty fee.

Refinancing a mortgage in Australia

Some Australian banks also offer refinancing options. This can be used if your fixed interest mortgage is ending and you want to open a new fixed product rather than reverting to the bank’s standard rate which may be higher. You might also choose to refinance if a different bank has a better offer available.

Check your specific mortgage before you consider this option, as there are often early repayment fees and penalties which you need to pay to be released from your initial mortgage. This may outweigh some or all of the benefits of refinancing.

Useful resources

• Wise – for international payments including mortgage payments and down payments
• Foreign Investment Review Board – check you’re eligible to buy property if you are not a permanent resident of Australia
• Commbank – mortgage and home loan landing page
• Westpac – mortgage and home loan landing page
• Macquarie – mortgage and home loan landing page
• Commbank – borrowing calculator and repayment calculator
• MoneySmart calculators – government backed website calculator you can use to estimate the costs of any mortgage
• ASIC’s Professional Registers Search – find a mortgage broker licensed in Australia
• Experian – get your credit score in Australia
• Australian Government 5% Deposit Scheme – access a home loan with as little as 5% deposit
• First Home Super Saver Scheme – use your super to make a withdrawal to buy your first home
• Australian Government Help to Buy Scheme – get government help for shared ownership in the you buy property