Tips

Mortgage Guide for First Home Buyers: Everything You Need to Know

Are you looking to buy your first home in Australia? We appreciate that while this is obviously a very exciting journey, you’ll undoubtedly have your fair share of questions. Will you qualify? What grants exist? How do you navigate the jargon? 

We get it. It’s a lot. But hopefully you’ll have a much clearer understanding of what you need to do by the end of this article.

Understanding Your Starting Point

The first thing that you’re probably asking yourself is “Am I eligible for the first home owner grant?” That’s the national scheme funded by state or territory governments and it rewards anyone who’s purchasing a new home.

So from new home builds to substantially renovated homes, you may actually be eligible for this if you meet residence requirements and aren’t buying under a company. And you’ve got to satisfy your own legislation.

For example, if you’re a natural person applying in New South Wales, stamp duty concessions might sweeten the deal for a house and land package or vacant land purchase. First home buyers may be eligible for the first $10,000 or more, depending on where you live.

Grants and Schemes

Australia offers a home guarantee scheme to make deposits a bit easier for newbies. In essence, any eligible first home buyers would be able to secure a home loan with as little as a 5% deposit. And you’d be avoiding costly mortgage insurance. 

In some states, you’d actually be able to dramatically reduce your upfront costs on a purchase price (up to a certain threshold) if you combine your first home owner grant and stamp duty concessions. 

That said, there’s a chance that you might not qualify for some of the incentives that only apply with new builds if you end up choosing a residential property that’s previously occupied. 

So we’d recommend checking this out with your local revenue office to confirm exactly what you can claim.

Choosing the Right Home Loan

You’ve got to do a bit more than just comparing interest rates when you’re trying to secure the right home loan. We’d suggest looking out for features like offset accounts and redraw facilities; these can help you pay off your mortgage faster. 

And keep in mind that when you’re assessing your borrowing potential, lenders will usually factor in features such as:

  • Property value
  • Your income
  • Any existing debts

Furthermore, being a permanent resident or Australian citizen tends to earn a bit more trust from lenders, though not a company status also matters – you’ll borrow as a natural person. 

In addition, lenders will set loan-to-value ratios, which are typically around 80 per cent, unless you have some kind of mortgage insurance. We’d always recommend going down that mortgage insurance route, but just make sure you’re saving a larger deposit if you plan to buy a home without mortgage insurance.

Picking Your Property

Location is always king, from a standalone house to a house and land package. Your choice could be a new home in a greenfield estate or a substantially renovated home in an established suburb. 

But if you fancy a townhouse or apartment, check the minimal owner corporation fees. Whatever you pick, just make sure you’re able to meet the building contract requirements – this is especially crucial for off-the-plan builds. 

And remember that purchase price must sit within your borrowing capacity. Other than that, just do a few due diligence basics like inspecting the site during daylight and asking about future developments nearby. 

Preparing Your Finances

Sorting a few basic finance responsibilities before you apply can end up saving loads of time:

  • Check your credit score and clear any small debts
  • Avoid big purchases like a new car in the months leading up
  • Speak with a mortgage broker if you need guidance on lenders’ eligibility criteria or to compare loan features
  • Show evidence of stable employment
  • Keep your bank statements organised
  • If a family member gifts you part of the deposit, have a formal gift letter ready (so your lender sees a clean funding source and your application moves smoothly)

The Application Journey

Once you decide on a property, your lender or broker will ask for documentation. This is where you’ll provide proof of identity – passport or driver’s licence – and evidence of your deposit. 

After this, it gets a bit more simple and you’ll need to do a formal valuation to confirm the property value. Then your lender will draw up a loan contract. 

Now we’re at the settlement stage. From here, you’ll:

  • Sign a contract of sale
  • Finalise mortgage insurance if needed
  • Pay stamp duty

You’ll also learn about cooling-off periods, which are solid in terms of giving you a safety net. Then once you’ve completed the settlement, you’ll own your home!

Moving In and Beyond

It’d be nice if you could just walk into your house after settlement and resume business as usual, but now you’ve got to deal with things like maintenance schedules and utility bills. 

If you’ve chosen a new home, your builder should hand over a building contract and offer warranties. 

For a previously occupied property, we’d suggest arranging for pest and building inspections before settlement.

Then, you’ll need to: 

  • Organise utilities
  • Get insurance cover
  • Update your address with banks or government agencies

Common Issues and How to Avoid Them

Again, we get that this is an exciting time, but that enthusiasm can easily lead to overspending. Don’t stretch your budget to its limit. Leave some wiggle room for unexpected costs like moving or minor repairs. 

And make sure you read every line of your loan contract. Ask about things like break fees if you refinance later. Lastly, just make sure you’re staying on the ball regarding deadlines – if you break contract terms, you could end up losing your deposit. 

Working with a Mortgage Broker

A mortgage broker can become your best mate when you’re dealing with all the bureaucracy involved with home loans. They’ll tap into a panel of lenders and give you options that align with your deposit size and credit profile. 

Rather than juggling multiple applications on your own, you’ll have a single point of contact. If you’ve got any questions about eligibility criteria or specific lender policies, your broker can clarify whether you – an Australian citizen or permanent resident – meet each bank’s requirements. 

They’ll also explain how a natural person differs from not a company in loan applications, and what exactly that means for your borrowing power.

Understanding Fees and Charges

Aside from the general interest rate, home loan fees are also something that can catch you off guard. Each of these adds to the overall cost of home ownership:

  • Establishment fees
  • Ongoing account-keeping charges
  • Valuation fees
  • Break costs if you refinance later 

So ask your lender for a detailed fee schedule. And remember: a lower interest rate might come with higher fees elsewhere. Balancing these figures against long-term savings can help you avoid surprises.

How Upscore Can Help

Buying your first home is ambitious, and Upscore’s Finance Passport can streamline the journey. Compare multiple lenders and apply online as a permanent resident or Australian citizen – all at no cost to you. 

Sign up today and get home sooner!

How to Buy Property in Greece as a Non-Resident

Have you been dreaming of a villa or a holiday home by the Mediterranean? We certainly don’t blame you. But how to buy property in Greece as a foreigner? The good news is Greece joined the European Union in 1981, so it uses the Euro and familiar laws. 

Greece is not going to blow you away in terms of heat (as it might if you were moving from, say, the United Kingdom), but plenty of Aussies are still drawn here because of Greece’s culture and relaxed lifestyle. You could even be thinking about renting out a Santorini loft from Sydney. 

The Greek property market has had its ups and downs. Prices surged strongly in 2021-2023, but they’re still below their 2010 peak. In practice, this rebound means bargains can be found, especially on holiday islands or in rural towns, but conditions are naturally going to vary depending on where you look. 

For context, prices differ widely: as of 2025, prime Athens averages around €2,200 per square metre, whereas touristy spots like Santorini or Mykonos can be near €4,000/m². You basically breathe in Mykonos and you’ve spent €20. 

But if you’re considering investment rentals, note that Greece will ban new short-term rental licences in central Athens starting 2025 to ease overtourism and housing pressure.

Documents and Local Steps

First off, you’ll need a Greek tax number. Known as a tax registry number (AFM), it’s mandatory for the entire purchase process. You apply for an AFM at the local tax office (DOY). (If you can’t visit Greece, a lawyer or accountant can get one for you by power of attorney.) Put simply, no AFM, no deal. 

Next, open a Greek bank account. You’ll want one to handle:

  • The deposit
  • Purchasing property
  • Taxes
  • Utilities

Along the way, you’ve got to gather a few essential documents: Greek authorities will expect your valid passport, the new AFM, and proof of income or tax returns (like when applying for a mortgage at home). You’ll also need a valid entry visa for Greece. Beyond that, Australians face no extra restrictions compared to EU citizens. As long as you have your paperwork in order, Greek officials treat you like a local.

Local Assistance

It’s also very helpful to engage a local real estate agent and a lawyer who knows about the Greek real estate market. An agent brings market smarts – knowing which neighbourhoods suit retirees versus holiday rentals – and they speak the local language of listings and negotiations. 

A lawyer handles due diligence: checking title at the local land registry (Ktimatologio) to make sure the seller is the legal property owner and that there are no surprises like unpaid taxes or illegal additions. This attention to detail helps avoid problems later.

Searching for Properties

Once you’re ready to search, remember that Greece offers a variety of homes. A Greek property purchase can vary from central Athens flats to hillside villas on Crete. Many Australians look at beach towns or islands for that holiday vibe, but also check up-and-coming regional areas. 

Use international property portals or have your agent set up targeted viewings. If possible, visit in person: seeing the view and testing a village’s vibe just can’t be done online. Also ask your agent to gather the last year of utility bills and title deeds in advance – these can reveal hidden costs or needed repairs.

When you find the right place, the offer-to-contract stage begins. You make a formal offer, and if the seller accepts, it’s common to sign a preliminary contract (a compromis) with about a 10% deposit. This locks in the deal under agreed terms (purchase price, closing date, etc.) for both sides. If you later back out without chuse, you’ll usually forfeit that deposit, so double-check everything before signing.

Signing the Deed (Final Contract)

Within a few weeks of the preliminary agreement, the final contract is signed in front of a Greek notary. Both you as the buyer and the seller (who are the current property owners) need to show up for this, each with valid ID and their AFM. 

At the signing, you then have to pay the remaining balance of the purchase price plus all the associated costs. For a resale home, that includes the property transfer tax – typically around 3% of the property’s assessed volume – plus a small stamp duty. (New builds incur 24% VAT instead.)

After the Sale

The notary or your lawyer then registers the sale with the local land registry. This part’s exciting since it legally finalises your property ownership. The title deed is put in your name; only after registration can you truly say you own the house. So until this actually happens, the property isn’t officially yours, no matter what the contracts say. After registration, you can transfer utilities into your name, and the local tax office will send any future property tax (ENFIA) bills to you.

Make sure you’re ready for a few extra costs too. Besides the deposit and property purchases, budget roughly 8-12% of the price for closing costs. These include notary and registry fees, any agent or lawyer commissions, and the taxes we mentioned above. We’d recommend that you keep some euros in your Greek bank account so you can cover these when the time comes.

Additional Considerations

As touched on earlier, Greece welcomes Australian buyers under the same terms as its own citizens. Still, you’ll need to coordinate between two countries, which means: 

  • Setting up international money transfers
  • Converting currency
  • Timing any travel

One practical tip: Australian banks will ask for paperwork when you transfer large sums overseas. Keep your documents ready and consider locking a good AUD/EUR rate (a specialist transfer service can help). 

Tax-wise, expect to pay Greek levies. For instance, Greece charges about 15% capital gains tax on any profit if you sell within five years, and it imposes a modest annual property tax on owners. You’ll also need to report any rental income or profit in Australia, though a tax treaty usually avoids double-taxation.

If you’re thinking about staying there for a bit longer, consider Greece’s Golden Visa. Buying €250,000+ in property (or €500,000 in hot zones) actually earns a residency permit.  This isn’t required just for buying – it’s really an extra perk. Greek bureaucracy can feel relaxed: the notary signing is formal, but expect it to take time. Your Greek lawyer should be able to handle many of these steps for you if you can’t be there in person.

So, if you’re thinking about buying a permanent home abroad or even just a pure investment, make sure you take it one step at a time. The process is straightforward once each requirement is met. 

How Upscore Can Help

To top it all off, consider a tool like Upscore’s Finance Passport. It helps Aussie buyers by compiling and verifying all your financial documents upfront, completely for free! 

Sign up to Upscore’s Finance Passport now!

The Ultimate Moving Abroad Checklist – Everything You Need

Moving overseas – especially if you’re going to somewhere that doesn’t speak the same language as you – can be pretty anxiety inducing. Even if you’re mostly excited about it, you’d have to agree it’s like stepping into the unknown. 

You’ll quickly see how there’s way more to the whole process than just booking your flight when you’re getting ready to leave your home country. That includes gathering a range of important documents and setting up a new bank account. Literally every part of your move needs attention. It’s not just something you do on a whim.

So we’ve made a moving abroad checklist to cover everything you need in order to settle in properly, wherever you’re planning on moving to. This includes things like:

  • Paperwork
  • Finances
  • Health care
  • And more 

Get Your Important Documents and Visas in Order

First things first: sort out your passport, visas, and all those vital papers. You can’t have your passport expiring for at least six months after you set off. Pretty much any major country, including the one you’re probably thinking about travelling to, needs this kind of buffer to let you in. 

So we’d advise applying for any necessary visas or work permits you need for your destination country as soon as you can since the processing can take a while.

Then after that, get every important personal document that you might need. So this includes:

  • Originals (and copies) of your birth certificate
  • Marriage certificate (if applicable)
  • Academic transcripts
  • Any licenses or certificates relevant to your move
  • School records (if you have kids)

And it’s also a decent idea to get an international driving permit if you plan to drive abroad because one of these IDPs proves your Australian licence is actually valid overseas.

Keep these documents somewhere organised in your carry-on luggage. Just make sure it’s safe because you definitely don’t want to lose them. 

It’s also not a bad idea to leave photocopies or digital scans with a trusted friend or relative back home so you’ve got some kind of backup. We get that this might sound a bit overly cautious or needlessly meticulous, but being this way with paperwork only takes a bit of prep and will save you headaches when setting up your new life.

Sort Out Your Finances and Banking

Money matters a lot when you’re making any big move. Obviously it helps if you’ve got more cash to play with, but it’s not even just that. You’ve now got to decide what to do with your Australian bank accounts – will you keep them open, or close them out? 

Notify your bank that you’ll be abroad so none of your cards get randomly frozen when charges suddenly appear from overseas. People tend to keep an account open so they can handle any remaining bills they’ve got back home, but you’ll also want to open a bank account in your new country that you use on a daily basis. 

Ask your Australian bank about international transfer fees or limits too, as you don’t want to be caught off guard by any restrictions your host country might have on money transfers.

Tax Responsibilities

Let the Australian Taxation Office know about your move if you’re leaving Australia for more than a few months – you must tell the ATO within seven days if you’re going overseas for over 6 months. 

And make sure you know what your tax obligations are in Australia and in your destination country so you don’t end up paying double. Australia only has tax treaties with a handful of countries to prevent double taxation, so otherwise you are probably going to be liable for taxes in two places. 

If that sounds complicated, just get in touch with a financial advisor. They can help you through issues like:

Take Care of Health and Insurance

Don’t forget to look after your health during this move. When you go abroad, you won’t have access to healthcare in your host country, so you’ll need to arrange your own health insurance coverage. 

So that means researching international health insurance plans that suit your needs in the new country. And you’ll want travel insurance to cover the actual move itself but also the first few weeks of your life abroad. 

If you have existing policies (for example, private health or life insurance), check with your insurance provider about whether your coverage will still be valid overseas. There’s a good chance you’ll probably have to update or extend your policy.

See your doctor for a general checkup and ask if you can get some copies of your health documents. For instance, keep a record of immunisations (vaccination records for all family members) and any important medical files or prescriptions you’ll need. 

Bringing these along will help new healthcare providers in your destination country understand your history and ensure continuity of care. Pack a basic travel first-aid kit and enough of any prescription medication to last until you can find a local doctor.

Handling Any Loose Ends Before You Leave

Again, start by deciding what you want to do with your house or apartment back home in advance. If you’re just renting, you need to give notice to your landlord. If you own a home, on the other hand, you could either sell or lease the property out to get some rental income while you’re away. 

Figure out what to do with your vehicle as well – you could sell it or arrange for transport overseas if you plan to drive in your new city.

Don’t forget things like cancelling or even just updating some of your services and subscriptions. Obviously things like a Netflix subscription can stay, but you’ll need to notify your utility companies of your move so you can settle any final bills. 

Set up mail forwarding with Australia Post or a private service so important mail reaches you abroad – or just get it sent to a family member’s address. It’s also a good idea to update your contact info to your new overseas address with institutions like:

  • Your bank
  • The electoral roll
  • The Australian Taxation Office

You also need to take care of any legal and personal matters, which could be just updating your will or giving a trusted person power of attorney to handle some of your affairs while you’re gone. And before you hop on the plane, exchange a bit of Australian currency into your destination country’s cash so you have local money in hand when you land. 

Lastly, it never hurts to prepare for the cultural change. Read up on your host country’s customs, and maybe learn a few key phrases in the local language. These are just small steps but you might find it helps you settle in a bit faster.

How Upscore Can Help

Upscore’s Finance Passport compiles all your income and credit history into a single profile, which makes it way easier to share with banks or lenders in your destination country. It’s completely free, and a great way of comparing different lenders when you’re applying for a mortgage abroad.

Sign up for Upscore’s Finance Passport today!

Moving Abroad From UK – Advice and Tips

Ever dreamt of moving away from the UK? We totally get it. Even the summers here rarely get above 20 something degrees, so we don’t blame you for wanting to go somewhere with nicer weather. On the other hand, you might be looking for new work abroad opportunities. And if nothing else, there’s nothing wrong with just wanting to experience life beyond your home country.

So making the leap to relocate is obviously quite exciting, but it’s definitely not without any kinds of challenges. Sure, moving overseas promises incredible new experiences and a chance to reinvent your daily life, but living abroad also means dealing with practical hurdles – including:

  • Different laws
  • Unfamiliar cultures
  • Being far from friends and family
  • Possible language barriers

From visas and paperwork to banking, we’ve got a bunch of tips throughout this article that can smooth your transition. And if you’re actually determined to turn this dream into a reality, smart planning is key. Here are some essential tips to get you started:

Planning and Preparation

Do your homework. Research your destination’s:

  • Culture
  • Climate
  • Visa requirements before you go (and if British nationals need to do anything extra)

Next, you’ll need to notify the UK authorities. Make sure to tell all the relevant government offices (like your local council, HMRC, pension and benefits providers, and the Student Loans Company) that you’re leaving the country. Do this as early as possible so you can avoid any kinds of issues. And keep in mind that your UK citizenship and voting rights aren’t affected just by moving abroad – you remain a British citizen unless you actively change it.

After this you have to organise a few different documents and get your insurance sorted. Start gathering all key documents well in advance – ensure passports (and any visas) are up-to-date, and make copies of vital records (which could be birth/marriage certificates, etc).

Again, you’ll also need to arrange appropriate insurance for your move. Get comprehensive travel insurance (and health insurance if needed) to protect yourself during the move. Finally, budget for other costs like shipping your belongings or getting some temporary accommodation somewhere so you’re not caught off guard. And always make sure that you have enough money set aside to cover your moving expenses and a few months of living costs for safety.

Visas and the Immigration Process

Getting the right visa is essential. After Brexit, British citizens lost their automatic right to settle in EU member states. Not ideal. So this basically means that if you want to move to an EU country, you’ll need to apply for a visa or residency permit. Don’t be put off by this – it’s still all very achievable, there’s just a few extra forms and fees you need to sort out. And in other European countries outside the EU, you’ll have to meet that nation’s immigration requirements.

Every destination country you’ve been thinking about has its own rules, so research the visa options that fit your situation. There are a few common pathways you can go down here, which include:

  • Work visas
  • Family reunification visas
  • Student visas
  • Retirement visas (if you plan to retire abroad)

You’ll generally need to show proof of funds, insurance, and so on – often a job offer for a work visa or sufficient income for a retirement visa.

Start the visa process early, as it can take months. Check the official embassy or immigration website for your target country to get an up-to-date list of requirements. 

And remember, the immigration process doesn’t end when you land – you are probably still going to have to register with local authorities or apply for a resident ID upon arrival. Under the Common Travel Area, you can still live and work in Ireland visa-free.

Finance and Tax Considerations

Handling your finances across borders naturally needs to be a top priority. So, before moving, it’s well worth opening an international bank account that you can use from anywhere. Wise do some good ones. Many banks offer offshore or expat accounts that make managing money abroad simpler. 

An account like this basically lets you hold money and make payments in multiple currencies without constantly worrying about exchange fees. Ideally, set up your new account before you leave the UK – in some cases you might need a local address or visa first, so check the requirements. 

It’s also a smart move to keep a UK bank account open (or open a new one you can access online). That way you have an account in your home country’s currency (GBP) for paying ongoing UK bills (like a mortgage), which also protects you from currency fluctuations.

Furthermore, it’s a good idea to research the living costs and have a think about how you’ll move money (a specialist transfer service or multi-currency account can save on fees). Check the tax considerations too: double-taxation agreements mean you typically won’t pay tax twice on the same income.

Housing and UK Property

If you own a home in the UK, decide whether you plan on selling or renting it out while you’re abroad. Plenty of British expats do this, since it’s just going to be sitting there if not. Selling gives you capital for the move, whereas renting (via a letting agent) can cover your mortgage and provide income (you’ll still owe UK tax on that rent).

And when it comes to getting a house in your new country, research your options and plan where you’ll live for the first few months. Many people rent initially so they can get a feel for the area before committing to buy. You wouldn’t just want to move to whatever location on a whim permanently before realising you hated it there. 

Check online listings and speak with local estate agents about rental costs and neighbourhoods – rents could be lower than in the UK, or much higher in some cities. Also ask about typical lease terms (in some countries landlords want a larger deposit or several months’ rent upfront). 

If you have children or plan to move with family, factor in proximity to schools and safe residential areas – and check what international schools are available if needed.

If you’re thinking about buying property in your destination, learn about the whole process and get professional advice. Laws on property ownership by foreigners generally differ in each country. 

Always have a local lawyer review contracts and make sure you understand all the fees and taxes before you buy. For most people, renting first and getting to know the market is the safest approach. Once you’re settled and financially ready, you can decide if purchasing a home abroad makes sense for you.

Moving abroad is not easy – you might face culture shock or a language barrier – but give yourself time to settle in and you’ll surely enjoy the experience.

How Upscore Can Help

Ready to take the next step? Upscore’s Finance Passport can make your move abroad smoother by simplifying the finance side. It compiles your UK financial history into a profile so you can apply for mortgages in your destination country and even across multiple countries without the usual hassle – all for free!

Sign up for your free Finance Passport today!

Buying A House Abroad – What You Need to Know

If you’re thinking about purchasing real estate in a foreign country you’re probably either looking to get your dream holiday home or just an investment property that’s got global potential. 

That said, it’s not exactly an easy process. Some countries are worse than others, but depending on where you go it’s not always so simple – buying property overseas comes with unique challenges that don’t apply back home. 

So, we’ve put together a few tips to help you make informed decisions when buying a house abroad.

Why Buy Property Overseas?

For both lifestyle and financial reasons, overseas real estate definitely has its benefits. Owning a house in Bali or a condo in Spain is going to be gorgeous for obvious reasons. And at the same time, international property is a class way of diversifying your portfolio as you’re spreading the risk across countries. 

Even if the Australian market slows or property values dip, an overseas asset might still be going strong. Plus, some overseas markets offer lower entry prices or higher rental yields than expensive Aussie cities which means you’ve got plenty of opportunities for healthy rental income from tourists or expats.

Investing abroad also lets you tap into growth in developing markets. While Australia’s housing is among the world’s priciest, some overseas markets are much more affordable. Just remember, a rock-bottom price doesn’t guarantee a profit – a cheap home in a struggling economy might stay cheap if demand never rises. Needless to say, thorough research is essential before you buy in an unfamiliar market.

Picking Your Location (and Knowing the Rules)

You’ve obviously got to find some kind of balance between where you’d like to live and how practical it actually is to live there – from Portugal to New Zealand. So before you fall in love with a location, check the fine print: can a foreigner even buy there? 

Property laws vary widely. Some countries make it easy – the USA and UK, for example, place few restrictions on foreign buyers. Others do the opposite: Iceland, for instance, only lets citizens or residents buy property, and Canada has recently barred foreign homebuyers. Always verify what foreign investment is permitted (or forbidden) in your country of choice.

New Zealand is a special case. The Kiwis restrict most foreigners from buying homes, but thanks to Trans-Tasman agreements, Australians are treated like locals when purchasing residential property. That makes NZ one of the easiest markets for Aussies to enter. And it’s naturally got a bit of that familiarity. Just don’t assume it’s cheap – New Zealand’s median property price in 2024 was actually higher than Australia’s.

In other parts of the world, don’t be surprised when you see how many unique and bureaucratic rules there are. Bali is a long-time favourite for Australians, but Indonesian law doesn’t allow foreigners to own freehold land. 

Foreigners can only buy Bali property under leasehold or “right-to-use” arrangements – freehold titles are reserved for actual Indonesian citizens. That hasn’t stopped people from flocking in; post-pandemic, Bali’s property market has boomed since foreign buyers bought up loads of the villas in hotspots like Seminyak and Ubud. 

In contrast, foreigners can buy freely throughout much of Europe, although you’ll still navigate a different legal system (often involving notaries and translated documents).

Know the local rules inside out before you commit. It’s wise to get advice from local real estate agents or buyers agents who know the language and process. Having a trusted expert on the ground can save you from costly mistakes in a foreign market.

Financing and Currency Considerations

Financing an overseas property can be trickier than getting a loan at home. Since most Australian banks won’t accept an overseas property as collateral for a mortgage, one common solution is to utilise some of the equity in your Australian home so you can fund the purchase.

On the other hand, some overseas lenders may finance your purchase, but be prepared for stricter terms. That could be larger down payments or higher interest rates for foreign borrowers.

Buying in a foreign currency also means you’ve got to worry about exchange rates. A weaker Aussie dollar can make your purchase pricier or shrink returns when you convert the rent back to AUD. You could definitely soften this impact a bit by borrowing or just keeping the funds in the local currency, but always budget a buffer for currency swings.

Handling Taxes and Legal Hurdles

It’s critical that you understand some of the tax implications and legal processes that are involved when purchasing property abroad. Many countries charge stamp duties or transfer taxes on real estate purchases, plus ongoing property taxes. Some even add surcharges for foreign buyers, so you naturally need to budget for some of these extra costs.

Then consider Australian taxes. If your overseas home is an investment property, the ATO will tax your foreign rental income just like rent from an Australian property (with credits for any tax paid overseas). 

But if the property runs at a loss, you may be able to deduct it under Australia’s negative gearing rules, and any capital gain on sale will be taxed back home. In short, the tax man wants his cut whether your place is in Melbourne or Madrid.

And then on the legal side you also need to be prepared for a different buying process. You might need to:

  • Hire a local lawyer or notary
  • Get documents translated
  • Obtain special ID numbers to buy as a foreigner

Tenant and property laws can also differ quite a lot. For example, some European cities cap rent increases and limit your returns on rental properties. So just stay aware of the local regulations so you don’t get caught off guard.

Managing Your Overseas Property

Finally, owning a home abroad means becoming a long-distance landlord or caretaker. Managing maintenance and tenants from afar is challenging – even a simple leaky pipe can turn into a major hassle when you’re thousands of kilometres away. 

That’s why it’s so common to see people hire a local property manager, especially if you plan to use the home as a rental property. A good manager can handle tenants and repairs, but you’ll need to budget for their fee and trust them with your asset. 

And then even with their help you could still have a bunch of random emergencies from a different time zone that you’d need to deal with.

Try to visit the property (or have someone inspect it) before you fully commit. Then after the purchase, it doesn’t hurt to visit it occasionally to ensure the home is being maintained as expected. 

Stay in regular contact with your property manager or neighbours so you hear about any issues quickly. 

How Upscore Can Help

One way to make your journey easier is to get your finances in order upfront. Upscore’s Finance Passport can streamline the mortgage process when you buy property abroad. It lets you use your Australian financial history to access home loan offers in multiple countries.

You can apply for non-resident mortgages online and compare rates from various lenders – all before you even hop on a plane and for free!

Sign up for Upscore’s Finance Passport today!

How to Buy Property in France as a Non-Resident

Wondering how to buy property in France as a non-resident? Australian citizens (or any other non-residents) don’t actually face any special restrictions – you can purchase French real estate with essentially the same rights as French citizens. 

So foreign buyers can have full property ownership rights and can invest in French real estate just as locals do. That said, being a non EU citizen does mean you have a few extra steps you need to think about, like visa rules for long stays and potential differences in the mortgage process. 

But when it comes to the buying itself, France welcomes international purchasers, and the process is broadly similar for locals and foreigners. Let’s look at this in a bit more detail:

The Process of Purchasing Property in France

There’s a clear property purchase process in France for non-residents, but it will probably feel a bit different from what you’re used to in Australia. Here’s a walk-through of the main stages, from hunting for a home to completing the sale:

Finding The Right Property And Making An Offer

Most people start their search online and look through French property portals and estate agency websites. Once you have a shortlist, you’ll want to get in touch with a local real estate agent (an agent immobilier) early on. 

France’s realtors not only help you locate suitable homes, but also guide you through the buying steps, which is invaluable if you don’t speak French fluently. In fact, because the process will be conducted in French and involves local paperwork, a bilingual agent who’s used to foreign buyers is almost a necessity since it makes your life so much easier. 

Your agent will arrange viewings and, when you’ve found “the one,” help you negotiate the terms and property price with the seller. The negotiation process in France is similar to elsewhere: you and the seller haggle (often via the agents) until you agree on a purchase price that works for both parties. 

And don’t be afraid to offer below the asking price – in a cooling market, sellers may be more flexible. Once a price is agreed, things start moving quickly into the contract stage.

Signing The Initial Contract (Compromis De Vent)

The first major document is the initial contract known as the Compromis de Vente. This is essentially the preliminary sales agreement between buyer and seller. It lays out things like:

  • The agreed price
  • Property details
  • Any conditions (for example, if the sale is contingent on you getting a mortgage)

You’ll usually sign this initial contract with a French notary (notaire) there or sometimes just at the estate agency. French law builds in a 10-day cooling-off period after signing. This is your last chance to withdraw from the contract without any kind of penalty.

So after those 10 days, the contract now becomes binding and you’ll need to pay the deposit, which is usually around 10% of the purchase price. This deposit will be held in escrow (often by the notary or agency) until it’s been completed. 

The Compromis de Vente is one of the main milestones of the whole agreement as it means both parties are committed to the deal (with some escape clauses for things like mortgage denial) and kicks off the due diligence process.

Due Diligence And Paperwork

So there are usually a few months of waiting before final completion after the Compromis. And during this period, various checks and paperwork are completed. As the buyer, you’ll want to ensure the property is in good order and that there are no legal surprises. 

French sellers are required to provide a Dossier de Diagnostic Technique (DDT) – a pack of official property surveys and certificates covering everything from lead paint and asbestos to termites and energy efficiency. This dossier de diagnostic technique is there to inform you about the property’s condition and any issue; it’s often reviewed with the help of your lawyer or agent. 

Your notary will also conduct title searches to verify the seller has clear ownership and to uncover any mortgages or easements on the property. And if any conditions were stipulated (such as obtaining planning permission or a mortgage approval), those also need to be sorted during this phase. 

It’s generally also a good idea to hire your own surveyor if you want a more detailed inspection, especially for older homes – remember, French houses can be centuries old, so an expert look at the structure and roof can do you a favour later. 

This is the time to ask questions and get documents translated if you don’t understand them – French bureaucracy can be paperwork-heavy.

Final Contract And Completion

The last step is signing the Acte de Vente (also called the acte authentique), which is basically just the final deed of sale. This is the moment you actually become the owner of the property. 

Completion usually takes place at the notary’s office. The notary (who is a public official responsible for ensuring the transaction is legally sound) will read through the contract aloud – traditionally in French, but your agent or translator can help if needed – and then both you and the seller sign it.

At this stage, you will pay the remaining balance of the purchase price to the seller, as well as settling all the purchase costs and notary fees. It’s also fairly common for foreign buyers to grant the notary a power of attorney to sign on their behalf if they can’t be present in person, so don’t worry if you’re still in Australia on the day. Then once everything is signed and funds are transferred, you get the keys – congratulations!

Taxes, Fees And Registration

In France, the buyer generally needs to pay the majority of the closing costs. These include the notaire’s fees and associated taxes (roughly 7-8% of the purchase price for an older property), plus any legal fees for your own lawyer (if separate) and maybe even a small estate agency fee if it wasn’t already covered in the price. 

The notary fees you pay actually mostly go toward government duties and taxes so only a small portion of that is the notary’s true fee. Additionally, you’ll pay a one-time land registration tax (it’s usually bundled within that 7-8%) to register the change of ownership. 

The notary handles the land registry formalities on your behalf – after the sale, they will file the deed with the French Land Registry (the cadastre) to record you as the new owner. A few months later, you’ll receive an official title document proving your property ownership has been registered! 

All of these costs are typically rolled into the final closing statement, so be prepared for your final payment to include more than just the agreed house price. We’d generally recommend that you budget for around 10% on top of the purchase price to cover taxes and fees to be on the safe side.

How Upscore Can Help

Upscore’s Finance Passport can help you show your financial history to overseas lenders, which makes it way easier to explore mortgage options as a non-resident. It’s a free service and lets you compare multiple lenders so you know you’re getting the best deal. 

Sign up for Upscore’s Finance Passport today!

Home Buying Costs – Things to Consider

Between making an offer and getting the keys, there are plenty of extra costs along the way outside of just handing over the price on the tag. There’s a lot more involved than just the agreed purchase price. 

From the obvious outlays to the subtle add-ons, every little piece can add up until the total feels much bigger than you initially expected. If you’re preparing to purchase property, you’ll definitely benefit from thinking beyond what that initial price tag you saw was and understanding all the extra expenses that come with the keys.

Hidden costs of buying a home can be especially surprising to first-timers. These are the fees and charges that aren’t always advertised in bold print but will definitely be there by settlement day. We’re talking about things like:

  • Taxes
  • Legal expenses
  • Other home buying closing costs that tend to pop up during the process

So, it’s important to keep this in mind so you can budget properly and avoid any surprises. We’re going to be breaking down some of the major things to consider throughout this article, so keep reading to see what to expect when buying a house.

Upfront Costs of Buying a House

One of the biggest upfront expenses in Australia is the government charge known as stamp duty. Stamp duty (sometimes called transfer duty) is essentially a property transfer tax that you pay to the state or territory government when you buy real estate. It’s not just an Aussie thing, you see it in plenty of other countries.

It can be a hefty addition – sometimes as high as about 7% of the purchase price. That means on an already expensive home, the stamp duty alone can run into tens of thousands of dollars. The exact amount depends on the property’s value and location, but there are often a few concessions if you’re a first-home buyer. 

No matter what, stamp duty is a major part of the costs of buying a house that you need to plan for early on.

Admin Charges

Aside from stamp duty, there are other government and administrative fees to budget for. Whenever property changes hands, you’ll have to pay title transfer and registration fees so the legal ownership can be recorded. 

These fees aren’t huge individually – they tend to be flat charges that are set by your state or territory – but they’re unavoidable and will definitely be due at settlement. 

Legal costs are another upfront item. Most buyers hire a conveyancer or solicitor to handle the paperwork and make sure the sale actually goes through properly. But obviously, these are professionals that charge for their services. 

You might agree on a fixed fee or be billed according to how complex the transaction was. Either way, a good legal expert is well worth it to avoid mistakes in something as important as a home purchase, so remember to include this cost in your budget.

Building and Pest Inspections

It’s not uncommon for people to invest in building or pest inspections before finalising a purchase. It’s not exactly mandatory, but we’d highly recommend you do one for obvious reasons. 

It’s a hidden extra that’s definitely worth including in your budget. A qualified inspector will check the property for structural issues or pest damage so you’re not lumbered with any major problems after you’ve already moved in. The inspection might cost a few hundred dollars, but it offers peace of mind – way better to pay that than to discover serious issues when it’s too late.

Financing and Mortgage-Related Fees

The lender you’ve went to is usually going to charge various different fees to set your home loan up. For example, many lenders charge a loan application or approval fee to cover things like:

Some of them will waive this, but definitely still be prepared in case it applies.

If you’re borrowing most of the property price and your deposit is relatively small, you’ve now got Lender’s Mortgage Insurance (LMI) to deal with. What is this? Generally, if you have less than a 20% deposit, the lender will require this insurance. 

LMI protects the lender (not you) in case you can’t repay the loan, and its premium is usually added to your upfront costs. This premium can be fairly significant and can get up to thousands of dollars. So it’s crucial to factor it in if it applies to you. 

The exact amount varies with your loan size and ratio, but it unquestionably adds to the costs of buying a home when your deposit is low, so do try to make a deposit of over 20% if you can.

Prepaid Costs When Buying a Home

Some costs in the home-buying process are actually just prepayments for future bills. So what are prepaid costs when buying a home? Essentially, they’re items like property taxes or insurance that you pay in advance. 

In Australia, this often means the seller has paid council rates (property taxes) past the settlement date, and you’ll reimburse them for the portion covering the period after you take ownership. It’s a cost that’s easy to overlook during budgeting, but again, it will definitely be on the final statement.

Home Insurance

Home insurance is another prepaid cost. Lenders usually make you get building insurance in place from the moment you settle – they want the house (their loan security) protected from day one. 

So you often pay a year’s home insurance premium upfront before or at settlement. That insurance payment is money you’d spend eventually anyway, but paying it earlier than expected mkps it a purchase expense you naturally need to plan for. 

You might also prepay some utility bills or body corporate fees to settle up with the seller at closing. If you’re wondering which are prepaid costs when buying a home specifically, tahink of basically anything where you’re paying now for a service or coverage you’ll luse later – like insurance, council rates or interest for the rest of the month.

All these prepaid items hit at the same time as your other fees, but they’re designated for future needs. It helps to set aside some budget for them so you’re not caught off guard. The bottom line here is that prepaids are part of the package, so just plan for them like you would with any other purchase cost.

Final Thoughts

Even after settlement, you might face extra expenses like:

  • Moving your furniture
  • Setting up utilities
  • Buying a few essentials for the new house

So, it’s wise to have a small financial buffer for those. The good news is that with careful preparation, none of these costs really have to derail your dream. Just take the time to research and list out everything – upfront costs of buying a house, prepaid expenses, etc. – so you know exactly what to expect. 

When you plan for the full picture, you can go about the whole purchase confidently and don’t have to worry about the financial side of things.

How Upscore Can Help

Ready to take control of your home buying journey? Consider signing up for Upscore’s Finance Passport – it’s free, and a smart way to use your financial history to get your mortgage process started and get expert support.

Get your Finance Passport today!

Moving Abroad: Expectations vs. Reality

There are plenty of people who move to Australia from overseas, but have you ever thought about leaving Australia to live somewhere else in the world? You definitely wouldn’t be alone – over half a million Australians now live abroad. 

But how exactly does that dream of moving abroad compare with reality? Let’s unpack some of the more common assumptions Aussies have about expat life and see what really happens once the plane lands and you’re left to your own devices.

Cost of Living: Expecting Cheap, Meeting Reality

Expectation: Life will be cheaper overseas – no more “Australia tax” on everything.

Reality: It’s a bit mixed and definitely isn’t always the case. Australia is indeed expensive, no one is denying that. But we also have high wages to match. 

Move to a place with lower salaries and, even if groceries or rent are cheaper, you might feel a pinch in a few other ways. For instance, Australia’s overall cost of living is about 10% lower than London’s, so an Aussie arriving in the UK may be shocked when a pub meal or flat rental costs more than it did back home. 

Needless to say, things definitely get a bit more affordable when you go further up north, but even cities like Manchester have incredibly high costs of living. Obviously, this is assuming that you’re planning to emigrate to an English speaking country, which is why we’re focusing on England at the moment.

On the other hand, some things definitely are a bit cheaper abroad – Brits usually get lower supermarket prices than Australians (thanks to the shorter distance for imports around Europe, for example), and many Asian countries have bargains when it comes to street food and transport. 

But in short, “cheap” and “expensive” will flip around depending on where you go. As a result, you’re just going to have to learn how to adjust your budgets.

Cultural Adjustment: More Than a Holiday

Expectation: Moving abroad will feel like a permanent vacation. Same language and similar culture means an easy transition.

Reality: Once the honeymoon phase passes, daily life overseas has the same chores and challenges as life at home – just in a different setting. Obviously, it’s still a fairly exciting prospect to move abroad, but you’re not going to be able to run from your problems entirely. You’ll still have to commute to work and pay your bills, only now you’re figuring it all out in unfamiliar surroundings. 

Even in another English-speaking country, you’ll stumble over little differences. Australians are famously informal, which could definitely raise a few eyebrows in more emotionally reserved cultures like in England. 

Adapting basically just means letting go of the “holiday” mindset and trying to embrace a new normal. It’s not our goal to sound too pessimistic and cynical about this whole journey. The good news is you’ll also discover new delights – perhaps a local bakery you love or a new sport you take up – that become part of your routine. You just need to appreciate that it’s not a holiday; it’s just everyday life, but with different buildings and weather.

Housing & Space: A Reality Check

Expectation: Housing will be easier or cheaper overseas. Maybe you’ll get a bigger place for less than you paid in Sydney.

Reality: Think again. Australian homes are actually among some of the world’s largest – on average about three times the size of UK homes – so moving into a London flat or Tokyo studio can be a fairly big shock to your system. 

You might swap a backyard and garage for a tiny balcony (or no outdoor space at all, which is fairly common in England). Even if property prices abroad seem lower on paper, exploring the market as an outsider isn’t exactly simple – especially if you’re going to a non-English speaking country. 

Renting can come with unfamiliar rules (like needing a local guarantor or extra deposits), and buying property is notoriously a frustratingly bureaucratic process. Be prepared for plenty of paperwork – translating documents and proving your financial credentials in a new system – to get a mortgage approved overseas. 

It’s all doable, but it certainly isn’t the effortless process you might expect. You’re definitely going to have to be a bit patient while you’re hunting for that new home away from home.

Community & Friends: Starting from Scratch

Expectation: You’ll instantly make friends and feel at home, and locals will love your Aussie charm.

Reality: Building a social circle from scratch is harder than it looks. In the first weeks abroad you might feel like the odd one out – your lifelong mates and family are thousands of kilometres away, and you might be friendly with co-workers or neighbours but probably aren’t going to feel immediately close. 

The Australian accent, for better or for worse, is definitely somewhat of an ice-breaker, but turning small talk into real friendship is something that takes time. We all take for granted how easy it was to make friends when we were back in school; it isn’t always as easy when you’re an adult.

Many expats find themselves seeking out other Australians or at least English speakers for a bit of familiarity. There’s no shame in that – joining an expat meetup or social group can quickly connect you with people who understand what you’re going through. 

Over time, you will break into the local scene too, especially as you learn the culture (and perhaps the language if you’re moving somewhere nearby in Asia, for example). Again, the key is just putting yourself out there and being patient. 

Bureaucracy & Healthcare

Expectation: Paperwork will be straightforward, and my health needs will be covered just like in Australia.

Reality: Every country has its own heap of rules and admin, and you often don’t realise how smooth things are at home until you’re dealing with a foreign bureaucracy. Setting up bank accounts or driver’s licences can turn out to be a whole ordeal. 

Some places are infamous for red tape – and often for good reason. Even in efficient countries, you’ll likely come across forms and processes you’ve never heard of. And when it comes to healthcare, don’t assume you’re automatically covered. Australia’s Medicare safety net doesn’t travel with you. 

While countries like the UK have public health systems with the NHS, the reciprocal healthcare agreement we have only covers basic emergency treatment and leaves out a lot. In many destinations (especially those without universal healthcare, like the United States), private health insurance is a must to avoid huge bills. 

So, make sure you do your homework on local requirements and get proper coverage. You wouldn’t want to be massively out of pocket from some random illness or from a bit of paperwork.

How Upscore Can Help

If you’re an Australian planning an international move, one way to ease the transition is to get your finances sorted early. Upscore’s Finance Passport can help by using your Australian financial history to let you compare and even apply for mortgages in multiple countries online. It simplifies remote property financing across borders, so you can explore your options with far less hassle. 

Sign up for Upscore’s Finance Passport today!

Property Investing 101: Your Guide to Buying New Land

Buying an empty block of land was probably not the first idea that came to your mind when you decided you wanted a property investment. For many Australians, property investments usually involve a house with tenants or a shiny apartment in the city. But there’s another side of the properties investment that you should think about: land. 

If you’ve ever looked at a patch of earth and imagined what could be built there, you already understand the appeal of property as investment in its rawest form. Obviously, it’s basically just dirt right now – no house, no rent coming in – but that’s exactly what makes it a blank canvas. 

With a bit of patience and vision, purchasing new land can be a fantastic investment. You’re looking at a piece that is essentially a property to invest on your own terms down the track. 

Learn more about how you can go about doing this in this article.

Why Invest in Land?

Let’s take a look at some of the major benefits and a few of the drawbacks:

Pros

Low Maintenance

One big plus with land is how low-maintenance it is. With no building on it, there aren’t going to be any leaky taps or repair bills – you pretty much just let it sit and (hopefully) appreciate over time. 

Low Holding Costs

The holding costs are low too: you’re not paying much in property taxes or insurance on an empty lot. And because vacant land usually costs less than a house, it gives a much lower entry point if you’re on a tight budget. 

Many people buy a block now and build later so they aren’t getting priced out of the property market when prices end up rising.

In fact, well-located land is a finite resource – as areas develop, an empty plot tends to become more desirable (they’re not making any more of it, as the saying goes). Unlike a house that gets old and needs repairs, the land itself won’t deteriorate – if anything, its value usually grows as the surrounding community expands. 

And if you decide to build in the future, you have the freedom to design exactly what you want on your land rather than being stuck with someone else’s layout. We’ve seen how limited supply can drive up land prices in some regions; for example, in Victoria a slow release of new lots over recent years has pushed prices higher due to pent-up demand.

Cons

Now for the slightly less exciting side of buying land:

Not Always Predictable 

It shouldn’t exactly be a surprise to learn that land investment usually requires a bit of patience. Values often inch up slowly year by year. But sometimes all it takes is one change – say a rezoning or new highway – for a quiet paddock to jump in value. 

Some investors deliberately buy on the fringes (a strategy known as land banking) hoping for that kind of development boom down the line.

The downside is that an empty block won’t pay you any rent in the meantime. You still have to cover expenses like council rates, maybe land tax, and loan interest out of your own pocket. 

That can add up, so make sure you can afford to hold the property long-term (smart investors even use negative gearing tax benefits to offset these costs). On the plus side, you might find creative ways to get a bit of cash flow from the land while you wait – for instance, leasing it out for parking or farming can help offset some costs. 

Banks also tend to be stricter with loans for vacant land – they consider it a speculative purchase and might require a larger deposit or stronger finances before approving a loan.

What to Consider Before You Buy

Doing your homework on the land is crucial. Location still matters a lot. A block way out in the sticks might be cheap and tempting at first glance, but land closer to towns or growing suburbs is more likely to gain value and is easier to sell or finance later – common sense.

If you’re planning to build a home or start a business on it eventually, make sure the area suits that – for example, a family home will benefit from schools and shops nearby.

Local Regulations

Always check the zoning and local regulations next. Verify that you’re allowed to build what you intend on the property. Some land is zoned only for farming or commercial use and not for residences, and some neighbourhoods allow only single-family houses (no apartment blocks). You don’t want to buy land thinking you can put, say, a workshop or a second house on it, only to find the council rules won’t allow it.

Future Prospects in the Neighbourhood

Also look into any future plans for the area. Is a major road extension or new subdivision planned that could affect your block? Those kinds of projects can either boost land value or give you massive headaches, depending on what they are. 

Local councils can tell you if any new highways or shopping centres are slated nearby, so you know what’s coming down the track.

Accessibility

Banks and buyers also care about access and services. Make sure the land has a proper road entrance – otherwise you might need to negotiate access via a neighbour’s property. Ideally it should have basic utilities available or at least nearby. 

If the block is off-grid with no power or town water, find out what it takes to get those set up. You might have to pay for electricity poles or install a septic system for sewage – costs that can add up quickly. Not always what you’ve got in mind when you’re thinking “I might get into property investment”. This is a big commitment you’ve got to be ready for.

The Land Itself

Consider the land’s terrain and condition too. A steep or oddly shaped lot might be hard to build on or subdivide later. And if a property’s price seems too good to be true, there could be a reason. 

For instance, it might have been an old landfill or industrial site, which could mean contamination issues. Be sure to read any covenants or other restrictions on the title as well, since they could limit your plans (for example, some estates require you to build within a certain time or to a particular design standard). 

Do your due diligence – talk to the council, maybe get a soil test – so you’re not caught off guard by any surprises.

Final Thoughts

In the end, buying undeveloped land in Australia is about seeing potential where others might not. Again, it’s more of a long-term play rather than a quick flip, but it can be really rewarding to watch your patch of earth increase steadily in value as the years go by. 

How Upscore Can Help

When you’re ready to make your move, having your finances lined up can make all the difference. Upscore’s Finance Passport helps you organise your finances for lenders, so you can get the best loan options without needless delay. Our service is free to use, and it’s designed to make borrowing overseas (or across state lines) feel as smooth as local finance.

Get started with Upscore’s Finance Passport today!

How Much Can I Borrow for Investment Property?

Thinking of buying property in Sydney or a holiday home abroad but don’t know how much you can actually borrow? Your borrowing capacity – essentially the amount a lender might lend you – is made up of a mix of factors. 

Lenders assess your whole financial picture, which includes:

  • Your income
  • Existing debts
  • Any expected rental income
  • Your deposit size (which affects the loan-to-value ratio, or LVR)

You’ll have a much clearer idea of what a bank is realistically going to offer you if you know how these pieces overlap. While the same basic principles apply for a property in Australia as they would overseas, buying internationally can introduce a few extra considerations (which we’ll touch on below).

Income and Ongoing Commitments

Income is naturally one of the main things that make up your borrowing power. Australian lenders are going to look over your salary and other earnings (like overtime or bonuses) to gauge how much money you actually have coming in. 

So generally, the steadier and more regular your income, the more comfortable the bank is going to be with lending you money. If you’re self-employed or juggling multiple jobs, they might look a bit closer or use an average, but they will definitely still count various income streams in your favour.

Outgoing Expenses

They also check what you’re already paying out each month. All existing loans and other debts you’ve got are going to chip away at the portion of your income you could be using for a new mortgage. For example, even if you pay off your credit card every month, the card’s limit (say $10,000) is treated as potential debt – the bank is going to factor in a monthly repayment on that limit when calculating your expenses. 

But then you’ve got everyday living costs that they factor in on top of your debts – everything from groceries to utilities – and even how many dependents you support. The more expenses and obligations you have, the less wiggle room in your budget for additional loan repayments. 

So to put all this simply, every dollar you’ve already got committed somewhere else is a dollar less available for a new property loan, which is why paying down debt can boost your borrowing capacity (it frees up cash flow that lenders can then take advantage of for your next loan). 

And remember, borrowing power is not identical across all banks – each lender has its own formula and criteria, so your maximum loan can differ significantly from one to another.

Rental Income from the Investment

Naturally, one of the main perks of an investment property is that it can produce rental income – and lenders will include that in your assessable income (but not at 100%).

As a general rule, about 75-80% of the gross rent is counted. So if you plan to charge $500 a week in rent, the bank might only factor in roughly $400 of it for your borrowing capacity. The rest is left out as a buffer for things like agent fees or periods when the property might be vacant, which is obviously still a possibility.

Rental income does improve your borrowing power, just not dollar-for-dollar. And if you already own other investment properties, their rental income (minus that same buffer) and their loan repayments will also be considered. 

In short, lenders add up all your income sources – including rent – and weigh them against your outgoings to decide what you can comfortably afford to borrow.

Deposit Size and Loan-to-Value Ratio (LVR)

How much you can borrow also hinges on your deposit. If you’re reading this article from an investor’s perspective, remember that you will generally need at least a 10% deposit for a home loan. The bigger your deposit, the lower your loan-to-value ratio. And the more comfortable lenders will be. 

If you have less than 20%, it’s often still doable, but you are probably going to have to pay Lender’s Mortgage Insurance (LMI). LMI is a one-off insurance fee that covers the lender if you default, and it usually applies when you borrow more than 80% of the property’s value. Staying at or below an 80% LVR (i.e. 20% deposit or more) lets you avoid that extra cost and can make your loan application stronger. 

For example, on a $500,000 purchase, a 10% deposit (around $50,000) might come with a hefty additional LMI premium, whereas a 20% deposit ($100,000) avoids LMI entirely and puts you in a stronger position with the lender.

Your deposit can come from savings or even equity in an existing property. You’ll see loads of investors using equity from their current home as the deposit for their next purchase. It’s essentially borrowing against the home they already own to help buy the new property. 

This can be a smart way to get into another investment sooner, but remember it effectively increases the loans you have (your first home loan grows), which the bank will factor into your overall borrowing capacity.

Local Investments vs Overseas Properties

If you plan on investing abroad, the lending game changes a bit. Australian banks usually won’t accept an overseas property as collateral because they cannot easily manage a foreign asset if you somehow default. You could, however, use any of the property you own here to finance a purchase over there as a bit of a workaround.

For example, you might refinance or get a home equity loan on your Australian house, then use those funds to buy the overseas property. If you do this, your borrowing capacity is still determined by your Aussie financials, since it’s your local property and income securing the debt.

Overseas Properties

Alternatively, you might seek a mortgage from a lender in the country where you’re buying, or use an international bank that caters to cross-border buyers. Some global banks (like HSBC) operate in multiple countries and may lend to Australians for overseas purchases. 

These foreign loans will still examine your income and debts, much like an Australian loan, but just keep in mind that you might face different terms. Often non-resident buyers need a larger deposit when buying abroad (sometimes more than 20%), and local rules can affect how much you can borrow. 

No matter where you buy, you’ll need to show that you can comfortably service the loan with your income and assets. The reality is that it’s going to take a bit more effort to finance an overseas property, but plenty of Australians do it successfully with the right planning and lender support.

How Upscore Can Help

Upscore’s Finance Passport lets you get in contact with local lenders when you’re buying property overseas. You’ll also be able to compare different loan offers and don’t have to pay a thing – we earn our fees from lenders, so it’s at no cost to you.

Sign up for Upscore’s Finance Passport today!

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