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How to Choose & Apply for a New Immigrant Mortgage 2025

From working out residency status to juggling loan terms, it helps to know what comes next when you’re searching for a mortgage. If you’re a new immigrant mortgage seeker, this guide explains each step of the journey. 

By the time you finish, you’ll have a clear path toward a home purchase – even if you’re still sorting visa type details.

Know Your Residency Status

First, check your visa status. Visa holders face different lending criteria than permanent resident applicants – as you might expect. Temporary residents often need to demonstrate a higher deposit because many lenders treat them as higher risk. 

And again, anyone who holds permanent residency or already carries Australian citizenship usually finds it way easier to access competitive rates. In fact, most lenders will ask for proof of residency status before approving home loan finance.

Compare Lenders and Rates

It obviously gets a bit overwhelming to pick the right lender given how many of them there are and how they all claim to have the best deals. Some home buyers turn first to big banks, but non bank lenders may offer more flexible options if you have a limited credit history. 

So that’s why shopping around will give you a better insight into which financial institution actually suits your needs. And when you do compare, look beyond advertised interest rates on an investment property or owner-occupied home. Check:

• Fees
• Minimum loan amounts
• Loan terms

All of these details will impact what your monthly repayments and overall costs look like more than a few basis points on your mortgage rate.

Work Out Your Budget

Determine a realistic purchase price before you start hunting properties. Your home loan commitment naturally hinges on your financial situation. So that’s your: 

• Income
• Outgoings
• Savings

And then there’s additional costs like stamp duty and potential lender’s mortgage insurance if you borrow more than 80%. If this is your first home, see if you qualify for a home owner grant. 

Many states and territories offer first-home buyer incentives that reduce upfront expenses. Once you’ve tallied everything, you’ll understand how much deposit you need and what loan size you can afford.

Seek Professional Advice

A qualified broker:

• Handles all the complex loan approval paperwork
• Highlights loan options you might miss
• Helps negotiate with lenders
• Has insider knowledge on exclusive offers and can speed up your application

And your broker can also guide you through the FIRB approval process if you want to purchase property as a foreign citizen. That’s the Foreign Investment Review Board check that temporary residents and foreign citizens must pass before buying. Skipping this step leads straight to delays, or worse, rejected applications.

Understand FIRB Approval

When non-citizens look to buy a house or investment property, FIRB approval becomes mandatory. The foreign investment review board examines applications based on your visa type and intended property use. 

If you’re an Australian citizen or permanent resident, this doesn’t apply – your path is naturally simpler. But foreign citizens must secure FIRB approval to avoid breaking the law. So that means having documents like your passport and proof of income ready early on. 

We’d definitely recommend starting this process alongside your home loan finance application so you avoid missing out on the right property – FIRB decisions can take weeks.

Check Your Credit History

Limited credit history can slow down loan approval. If you’re new to Australia, your bank statements and credit file might not carry enough data. That doesn’t outright wreck your chances, but it does mean you’ll need extra proof:

• Payslips
• Employment contracts
• Savings records

Some non bank lenders accept alternative evidence of good financial behaviour, like rent payment history. 

Plan for Additional Costs

You’ve got more than just your monthly repayment to pay so factor in costs like maintenance and rates. An investment property, for instance, is great for rental income, but there are always unexpected repair costs.

And remember that an increased deposit may influence cash flow if you buy a property to rent. 

You’ve also got to think about homeowner insurance and strata fees (if you’re in an apartment) if you’re planning on living there yourself since these form part of your ongoing expenses. 

We get that this is a lot to think about, but it definitely helps you avoid nasty surprises down the line if you’re diligent about it now.

Decide on Loan Features

Shorter loans generally give you lower interest rates in exchange for higher monthly repayments. So it might be better to choose a 20-year term to pay the mortgage off sooner if you have a stable income. 

Variable rates are good if you want more flexibility since they let you make extra repayments without any penalties. 

Fixed rates are a bit better if you want more peace of mind for a set period, though you still face break costs if you refinance early. 

Gather Required Documents

When you’re finally ready to apply, compile everything:

• Proof of identity
• Visa documentation
• Employment evidence
• Bank statements
• Details of existing debts
• FIRB approval confirmation

Getting all your paperwork together nice and neat like this is definitely worth it as it shows that you’re serious about the home purchase.

Partner with the Right Professionals

A good mortgage broker helps you filter through dozens of loan products to find competitive rates that match your circumstances. 

And for foreign citizens, they coordinate FIRB approval and lodging. If you’re an Australian citizen with limited credit history, they’ll flag suitable non bank lenders. And even if you hold permanent residency, their relationships with lenders often get you offers that aren’t on the shelf. 

Apply and Secure Loan Approval

When you submit your application, expect to hear back within one to two weeks. Loan approval depends on more than your income; the underwriter reviews:

• Your credit
• Deposit size
• The property itself

They check the purchase price against a valuation to ensure it’s consistent with market levels. They also consider rental income projections and vacancy rates if you’re buying an investment property. 

Once you get formal approval, you’ll receive a home loan approval letter. This document sets out all the important stuff – loan amount, interest rate, loan terms. Then after you sign this, you’ll move to the settlement and finally collect the keys!

Final Thoughts on Your Home Purchase

That journey – from sorting your visa status to finalising stamp duty – is unique for everyone. But by staying organised and working with an expert who knows what they’re doing, you’ll find it’s really not that bad. 

How Upscore Can Help

Ready to make your move? Sign up for Upscore’s Finance Passport today where you can:

• Compare options across multiple lenders
• Lock in competitive rates
• Get personalised support for your new mortgage journey

It’s completely free – no upfront costs because we earn a fee from the lenders if you get a loan – so take it as your risk-free first step toward home loan finance!

Sign Up For Your Finance Passport Now!

Can Expats Buy Property in Australia?

The answer is yes – but it comes with conditions. Australia’s government welcomes foreign investment in property, but it regulates it carefully. Expats (meaning foreign nationals who aren’t Australian citizens or permanent residents) can purchase Australian property, but they face extra:

• Rules
• Approval steps
• Taxes (like capital gains tax and income tax)

Who Is a Foreign Buyer in Australia?

In Australia, the law uses the term “foreign person” to classify who needs special approval to buy property. If you are an Australian citizen or hold permanent residency, you’re not considered a foreign buyer – even if you’re an Aussie expat living abroad. 

As you might expect, citizens and permanent residents (as well as most New Zealand citizens living in Australia) can buy any property without prior government approval. However, anyone else – including temporary residents on visas and overseas investors – is deemed a foreign person so you have to follow the foreign investment rules. 

And being labeled a foreign person isn’t a judgment on character; it’s literally just a legal definition. The idea is to ensure that foreigners buying property do so in a way that benefits Australia. 

The Role of the Foreign Investment Review Board (FIRB)

Any foreign person purchasing property needs to get approval from the Foreign Investment Review Board (FIRB). FIRB is the government body that reviews foreign purchases to make sure they align with national interests, like we mentioned before. 

So before you buy, you apply for FIRB approval and pay an application fee. The fee isn’t trivial; it scales with the property value. For example, buying a house under AUD 1 million incurs a AUD 14,100 FIRB fee, which only gets higher the more expensive your home is. 

Luxury real estate deals can see fees well over AUD 100,000. This is, of course, on top of the purchase price of the property itself. And failing to get approval when required can lead to steep fines or even forced sale of the property, so it’s not something you can skip as an expat.

Most applications by expats are approved, especially if you’re buying a new investment property or building on vacant land (more on those options below). The government mainly wants to ensure the investment adds to Australia’s housing stock. 

What Can Foreign Investors Buy?

Australia sets clear limits on what types of residential property foreign buyers can purchase. The general rule is that expats should invest in new or additional housing rather than competing with locals for what’s already a limited supply of existing homes. 

Established dwellings (i.e. second-hand houses or apartments that have been previously owned or occupied) are heavily restricted for foreign buyers. In fact, from 1 April 2025, the government has temporarily banned foreign persons from buying any established dwelling at all. (This two-year ban, which is in effect until 31 March 2027, was introduced to ease housing affordability pressures.) 

So under the current rules, even expats on temporary visas can no longer purchase an existing house as a home. 

That said, you can see on that link from the Australian Taxation Office (ATO) website that limited exceptions do still exist – for example, if a foreign investor plans to redevelop an old property into multiple new units, that may be considered, since it adds to the housing supply.

By and large, though, established dwellings are off the table for foreign buyers right now. So, what can you buy? 

New Dwellings

New constructions are your main target. New dwellings – like brand-new apartments or houses that have never been occupied – are fair game for expats. Buying off-the-plan from a developer or a newly built home gets easier approval because it’s creating new housing stock. 

Vacant Land

Vacant land is another option for foreign buyers, provided you intend to build a residence on the land within a certain timeframe. The government doesn’t want speculators just land-banking, so if you buy vacant land, you’ll be required to start construction (usually within 2-4 years as a rule of thumb). 

There’s an emphasis on use: if you buy land or a new property, you’re expected to put it to residential use (living in it or renting it out). In fact, there’s even an annual vacancy fee to discourage foreign owners from leaving properties empty  – if your property is unused for over 6 months a year, you may incur a fee equal to your FIRB application fee. 

That makes holding a vacant investment quite costly and is a big incentive to either occupy the home or have tenants.

Other Land

Lastly, note that commercial properties (like offices or shops) and agricultural land have their own separate rules and are not as restricted as residential homes. But for most expats, the interest is in home – from investment property that generates rental income for you to places to live while in Australia. 

Navigating the Australian Property Market as an Expat

It helps to do your homework on the property market and local buying process. Start by researching areas and prices through online property portals like Domain or Realestate.com.au.

These websites list most properties for sale and can give you a feel for what’s available within your budget. And consider how the location of a property might affect its long-term value and rental appeal. Are you looking in a capital city like Sydney or Melbourne, where prices are higher but rental demand is strong? 

Or perhaps you’re eyeing Brisbane, Perth, or the Australian Capital Territory (ACT) (home to Canberra) for more affordable options. 

Once you have a target property, now’s the time to speak with local professionals. A reputable real estate agent can guide you through making an offer or bidding at auction (auctions are a common way to buy homes in Australia). 

Since you’re an expat, you might also consider hiring a buyer’s agent, who are licensed professionals that work on your behalf to find and negotiate a property purchase. They can be especially useful if you’re overseas and can’t attend inspections in person. 

Speaking of inspections, when you find a property you like, try to view it yourself or have someone you trust do so. Pictures online can definitely be deceiving. Then if the property checks out, proceed with those building and pest inspections so you know the home is in good shape.

Legal Conveyancing 

Your solicitor will:

• Review the contract of sale (which in Australia can be quite detailed)
• Ensure the title is clear of issues
• Coordinate the closing (known as “settlement”)

The process and timeline can vary by state – for example, some states have a cooling-off period after signing a contract, but others (like buying at auction in most states) do not. Your lawyer will guide you on this. They’ll also make sure the Foreign Investment Review Board conditions are met and that your purchase is registered appropriately. 

There’s now a requirement for foreign owners to register their property on the national Register of Foreign Ownership, and your conveyancer can help with that too.

How Upscore Can Help

If you’re an expat serious about investing in Australian property, consider getting your finances in order early with Upscore’s Finance Passport! It can help you organize your financial profile and present yourself as a credible buyer to lenders and sellers alike. 

Get your free Upscore Finance Passport today!

Spain Expat Property Tax: Everything You Need to Know

You’ve undoubtedly got this idyllic image of Spain in your head that’s led you to wanting to get a property there in the first place. 

It’s not fun to talk about, but unfortunately there are a bunch of Spanish tax rules and bureaucracy to handle before you get there. Any expat needs to understand these before committing and moving abroad. 

From property tax in Spain to wealth tax and capital gains, there’s quite a lot to unpack here. But we’re going to break down some of your core responsibilities throughout this article so you can start purchasing property in Spain without getting lost in jargon.

Understanding Your Status and Tax Liabilities

Before you start comparing regions along the Costa or scouting city apartments, clarify your non-resident status. Australia and Spain share a tax treaty, but if you spend fewer than 183 days a year there, you generally face non resident income tax rather than full Spanish income tax. 

That’s basically just so the Spanish tax authorities know how to treat your earnings and your annual taxes on any foreign income. Yeah, unfortunately, even if you never set foot in an office, owning a holiday home triggers tax liabilities that you’ve got to face. 

What you can do, however, is prepare for this early on. That will save you a bunch of headaches when the Spanish government mails your tax bill.

The Basics of Purchasing Property

Right, so once you’ve settled where you want to live (or rent out) you’ll need to negotiate a purchase price and perhaps sign a promissory contract. 

At this point, you’ll pay a deposit while awaiting the final contract. The property’s cadastral value (which is maintained by municipal registries) may differ from your purchase price, but both of these figures can actually sway your transfer tax and annual real estate tax bills. 

That said, the transfer tax you’ll end up paying usually varies by region. But expect rates somewhere between 6% and 11% of the declared price. It goes without saying that that tax rate alone can add tens of thousands to your outlay, so definitely factor it in before making an offer.

Annual Real Estate Tax and Municipal Charges

As to be expected, you’ll have regular bills that you’d get anywhere once you own some Spanish property. The annual real estate tax, known locally as IBI, depends largely on the property’s cadastral value. 

Each municipality sets its own municipal tax rates, so your seaside villa might draw a higher bill than an inland apartment. 

On top of that, some towns levy a council tax-style charge for services like rubbish collection or street lighting. These levies run year to year – just make sure you don’t miss a payment as it can lead to penalties or liens against your property ownership.

Wealth Tax: A Different Angle

You’ll end up facing wealth tax if your Spanish assets and global net worth surpass a certain threshold. Naturally, we get that not every owner is going to fall under this bracket, but in regions like Catalonia or Madrid, it kicks in for net assets above around €700,000. 

That includes:

• The value of your Spanish home
• Other real estate
• Financial investments

The Spanish government actually changes these rates every so often, so double-check the current band before assuming you’re safe. Of course, not everyone is going to see a bill, but it’s one of those things that catch many buyers out who thought they only had to worry about once-off purchase costs.

Capital Gains Tax When Selling Property

Should you decide to exit the property market, you’ll need to pay capital gains tax on any profit. To calculate your gains, you basically just compare your purchase price plus documented renovation expenses against the sale price. Then apply the current tax scale, which ranges from 19% for smaller gains up to 26% on anything substantial. 

Non-residents face a flat withholding of 3% at sale closing, but that’s a down payment on the full obligation. 

Lanter, you file a return to reconcile the withholding with your actual liability. Yeah, it’s a lot to think about, but it’s one of those things you’ll want to know about to avoid any sort of surprise down the line.

Renting Out Your Spanish Property

Turning your home into a holiday let brings in rental income, but it also means a few extra forms. Non-residents report gross rental receipts and can deduct certain expenses like interest or community fees before facing the 19% flat rate.

For residents, the rate actually links to your overall earnings under Spanish income tax. But either way, keeping tidy records of rent and insurance is definitely key here because failure to declare rental income can trigger audits by Spanish tax authorities. And they’re swift to chase unpaid sums.

Navigating Non-Resident Income Tax

If your Spanish earnings stretch beyond rent (say dividends from a local company) you’ll deal with non resident income tax on that too. Again, that same 19% flat rate applies to most passive income streams. But you must file a Form 210 quarterly if you earn anything in Spain outside wage income. 

Even minimal yield from Spanish investments or a summer-long rental calls for this form, so set aside a moment each quarter to pay tax and file online.

Other Common Tax Implications

Beyond some of the bigger categories we’ve already touched on, there are a handful of other smaller charges worth considering. 

For example, a stamp duty can apply to mortgage deeds, while some communities tax second-home vacancy. 

And if you plan on renovating, an IVA (value-added tax) may attach to contractor invoices. Then you’ve got wealth tax and inheritance duties to think about if your estate plans include passing the place to your heirs. 

Working with the Spanish Tax Authorities

If you’re used to using local online portals or you don’t even speak Spanish, you’re probably going to struggle a bit when you need to interact with Spanish tax authorities. 

So that’s why most expats appoint a gestor or tax lawyer to:

• File returns
• Secure certificates
• Negotiate payment plans
• Handle the bureaucracy
• Translate notices
• Ensure deadlines aren’t missed

From simple IBI payments to sorting out the whole new property tax proposal, you definitely want a local contact in your corner at this stage.

The Big Picture for Australian Buyers

In essence, you’ve got to think of buying this property not only as a lifestyle investment but as a financial commitment that comes with ongoing costs. Each step – from purchasing property to selling property years later – has a range of tax liabilities that you need to think about. 

So planning for annual taxes and understanding your status for non resident income tax, even just keeping tabs on Spanish tax rules, is something that makes the whole process less overwhelming. 

How Upscore Can Help 

Ready to make your next move with confidence? Sign up for Upscore’s Finance Passport today and get personalized guidance on mortgages across multiple countries – completely free. 

Get your Spanish Finance Passport today!

What Is a Good Capital Rate for Investment Property?

When you first dive into real estate investment, you’ll hear about the capitalization rate again and again. It’s a simple concept on the surface, but it’s one of those things that encompasses a bunch of different factors, like:

• Property value
• Risk tolerance
• Market conditions

So you’re not exactly alone if you’ve ever asked yourself “what is a good capital rate for investment property.” Let’s break it down now:

Grasping the Capitalization Rate

At its core, the capitalization rate – or cap rate – is just the ratio of a property’s net operating income to its purchase price or current market value. 

It’s that single figure that tells you how your initial investment might perform over time. So that’s basically your yardstick. When you calculate cap rate, you take the annual net operating income and divide it by the purchase price. That above formula lays out a straightforward path:

• Cap Rate = Annual Net Operating Income/Purchase Price

So from apartments down the road to commercial real estate projects overseas, the cap rate formula is your go to ratio. It combines your annual rental income with operating expenses, so you can compare apples with oranges without any kind of hassle.

How to Calculate Cap Rate

You genuinely don’t need a finance degree to calculate cap rate. First, you tally the revenue – usually the annual rental income. Next, subtract operating expenses. That covers everything from property management fees to maintenance costs and property taxes. 

The result is your net operating income (NOI). Now, divide that net operating income NOI by either the property’s purchase price or its asset value based on current market value.

Imagine a small block of flats in Sydney. If the annual net operating income is AUD 120,000 and you paid AUD 2 million, you’d calculate cap rate like this:

• 120,000 ÷ 2,000,000 = 0.06

A 6% capitalization rate. Plain and simple.

What Drives a “Good” Capital Rate?

Labels like “good” or “bad” cap rate are just going to shift with location and timing. In a tiny little suburb where property prices barely budge, lower cap rates can still yield steady returns. 

Meanwhile, in a busy district with booming development, you’ll find higher rates – or at least the promise of them. Things like the interest rates and even the temper of the broader real estate market can turn a so-called “good” cap rate on its head overnight.

Your risk tolerance plays a major role here, too. If you prefer a stable, hands-off asset, you might settle for lower cap rates in return for a dependable tenant mix and minimal vacancies. 

On the other hand, anyone looking for a bargain wanting a spike in property prices might target higher rates that are a bit less certain.

Rental Properties vs Commercial Real Estate

Rental properties have always been one of the main incentives of real estate because of the stable monthly cash flow. The cap rate here leans heavily on steady tenants and manageable operating expenses. 

You’ll need to juggle:

• Property management fees
• Routine repairs
• Tenant turnover

All those add up and chip away at your net operating income if you’re not careful. On the other hand, commercial real estate usually needs a deeper dive. You’ll balance:

• Complex leases
• Multiple tenants
• Varied property types – everything from office space to warehouses

The stakes are obviously higher, so cap rate calculations get weighed down by extra considerations.

Tailoring Cap Rates to Market Conditions

Cap rates tend to compress when property prices soar in a local market. You end up paying a premium because every investor chases the next big opportunity. Alternatively, the cap rates widen in markets that trail behind, which nudges the yields upward to attract buyer interest.

And don’t overlook some of the wider economic signals. Interest rates set by the Reserve Bank can end up having an impact on your projections. When borrowing costs climb, investors often calibrate what they’ll accept as a good capitalization rate. 

Then on the other hand, when interest rates drop, more buyers chase the same properties, nudging cap rates down further.

Balancing Risk Tolerance and Return

Your appetite for risk shapes what cap rate you’ll probably end up targeting. So a conservative real estate investor is usually going to look for lower yields if they know their asset will weather storms – think properties leased to government agencies or long-term retail tenants. 

But higher cap rates signal a lot more risk. For example, you might want to bet on an emerging neighbourhood, knowing that if the gamble pays off, you’ll enjoy capital gains as well as rental yield.

Obviously this is quite a fine balance that you need to find. You measure the asset value today against potential twists and turns tomorrow. 

So, will that cap rate still make sense if interest rates shift by a point or if operating expenses rise? You’re not just chasing a static figure. You’re testing your assumptions and ultimately landing on a cap rate that sits comfortably within your own strategy.

Comparing Cap Rates Across Properties

If you plan to compare cap rates, you’ve got to benchmark wisely. You don’t want to compare a prime CBD office block with a suburban duplex. Even within multifamily investment, every property type carries its own risk profile. 

So when you go to compare cap rates, we’d suggest picking a narrow peer group and staying focused. That’s just one of the ways you can avoid having skewed data, which is a big issue.

You might also want to layer in a quick check of market conditions. Are vacancy rates ticking up? Are property taxes on the rise? How do maintenance costs stack up against those of similar assets? 

Combining cap rate analysis with these insights gives you a way sharper read on whether you’re truly scoring a deal or just stepping into a riskier game that you didn’t expect.

Real-World Cap Rate Calculations

Let’s look at a scenario you could face when you’re evaluating two properties:

A three-bedroom house listing for AUD 800,000. It throws off AUD 40,000 in annual rental income. Operating expenses total AUD 10,000.

A small retail suite in a shopping centre for AUD 1.5 million. It nets AUD 120,000 after you account for property management fees, maintenance costs, and property taxes.

So, how do you calculate cap rate for each:

• House: (40,000 – 10,000) / 800,000 = 0.0375 or 3.75 percent

• Retail Suite: 120,000 / 1,500,000 = 0.08 or 8 percent

On paper, we get that it looks like the retail suite’s cap rate is far more attractive. But keep in mind you’d also need to vet: 

• Tenant stability
• Local foot traffic
• Potential for rent reviews

The house might look a bit tame with its lower cap rate, but what you are getting is peace of mind. Especially if it sits in a strong school zone and has a reliable local market.

How Upscore Can Help

Feeling ready to refine your numbers and simplify your search? Try Upscore’s Finance Passport. It’s free to use and helps you compare multiple lenders across several countries.

Sign up today to take the guesswork out of real estate investment!

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. 

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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!

Big Bank vs Small Lender Mortgage: Everything You Need To Know

Are you struggling to decide whether you want to go to a big bank or a small lender to get your mortgage? We’d totally get why you’d think about just going to a big bank. There’s familiarity and some level of reliability that you might not be sure you’re getting with a small lender. 

That said, this process is more about finding someone who’s going to match your priorities – that could be:

• Getting a quality deal on interest rates
• Face-to-face service at a local branch
• Accessing more flexible lending criteria if your situation isn’t straightforward. 

Fortunately, both the traditional giants and fairly new small lenders have their place in the home loan market, so you’ve got good options either way. Here’s how to weigh them up and decide what works best for you:

An Overview of Australian Mortgage Lenders

Australia’s financial system relies on a mix of some of the major players you’ve undoubtedly heard of and a few smaller outfits. The “big four” banks dominate this scene, which includes:

• Commonwealth Bank
• ANZ
• Westpac
• NAB

These banks are overseen by the Australian Prudential Regulation Authority, and they hold the lion’s share of mortgages. As you might expect, they each have huge branch networks and polished digital platforms that are easy to use.

On the other hand, many non bank lenders tend to solely be home loan providers, whether they operate solely online or through a handful of branches. So not including personal loans. And then alongside them sit credit unions, building societies and challenger banks. 

These smaller financial institutions want to compete against those big banks generally speaking, and they do this through sharp rates and personal service as they hope to chip away at the big banks’ market share.

Why Borrowers Flock to Big Banks

Familiarity and Trust

As mentioned before, walking into a branch of a big bank brings instant recognition. You know the logo and the staff in branded uniforms. For a lot of people, that translates into peace of mind when dealing with substantial financial products like a mortgage. Crucially, you can rely on them.

Breadth of Services

Major banks often offer a full wheel of banking services that can be bundled with your loan (unlike with non bank loans), such as:

• Everyday bank accounts
• Offset accounts
• Credit cards
• Insurance

One login and one relationship can feel convenient if you prefer everything under one roof.

Regulatory Oversight and Stability

Under APRA’s watch, big banks must maintain strong capital buffers and strict lending practices in order to safeguard financial stability. That rigorous supervision is naturally going to reassure you as a customer that your lender is solid – even when markets wobble.

The Rise of Small Lenders

Competitive Interest Rates and Fees

Smaller lenders generally operate without massive branch networks, and they can pass on savings in the form of competitive interest rates. They often advertise lower ongoing fees and package costs. Over a 25-year loan, shaving just 0.3% off the rate can mean thousands of dollars in savings.

Personalised Service

With fewer customers per staff member, a boutique lender or local credit union may deliver a more tailored experience. You’re more likely to deal with the same contact throughout the application and settlement process – and they can sometimes approve applications faster.

More Flexible Lending Criteria

Traditional banks stick to strict checklists:

• Stable employment history
• Substantial deposit
• Spotless credit

Smaller lenders, on the other hand, often offer more flexible lending criteria. Self-employed borrowers, those with irregular income or minor past credit hiccups might find that they’re more likely to get a loan approved with a non-bank mortgage lender.

Comparing Interest Rates and Fees

Understanding the True Cost

It’s tempting to chase the lowest advertised rate, but you also need to factor in interest rates and fees, such as:

• Application fees
• Ongoing account fees
• Early repayment penalties
• Redraw charges
• General home buying costs

These can erode the benefit of a low headline rate, so you always want to compare the total cost over time.

Fixed vs Variable Options

Both big banks and small lenders provide a mix of fixed and variable rate options. Fixed-rate deals lock in your repayments for a set term, which offers some certainty if you prefer a stable budget. Variable rates, on the other hand, can adjust, giving you flexibility to make extra repayments or tap into an offset account linked to your home loan.

Loan Features That Matter

Offset and Redraw Facilities

An offset account effectively uses your savings to reduce interest on your home loan. Some big banks bundle this into premium packages, often with higher annual fees. Smaller lenders may offer standalone offset facilities without tying you to a broader banking relationship.

Refinancing and Switching

The general state of mortgage lenders changes quite quickly. Refinancing can be a powerful tool to capitalise on shifting interest rates. Smaller lenders sometimes run promotional offers exclusively for switchers, where they waive certain fees or offer cashback. Before you refinance, double-check any exit or application fees to ensure the switch genuinely saves you money.

Safety, Regulation, and Deposit Guarantees

Authorised Deposit-taking Institutions

Banks, credit unions and building societies are all grouped as ADIs. They all meet rigorous capital and liquidity requirements under the supervision of the Australian Prudential Regulation Authority (including an Australian credit licence). 

Government Deposit Guarantee

The federal government guarantees customer deposits up to $250,000 per person per ADI. This is a safety net that covers savings accounts but not mortgages – though as a borrower, your repayment obligations don’t just vanish if a small lender fails. Instead, your loan is typically sold to another institution, meaning you continue to repay under the same terms.

Tech and Transparency

Online Tools and Comparison Platforms

Nowadays, it’s fairly common for both big banks and smaller lenders to provide nice online portals where you can check your borrowing power in minutes. Some platforms even integrate third-party data, which lets you pre-fill forms with details from your savings accounts or credit files. 

Open Banking and Data Sharing

Under new regulations, consumers can authorise banks to share data with authorised third parties, including non-bank lenders. This means you could submit your transaction history directly to a smaller lender, which would massively speed up the assessment process and reduce all the issues you might face when it comes to documentation.

Finding the Right Balance

Your Personal Priorities

• If you crave one-stop banking, branch access and a full suite of financial products, a big bank might suit you best.
• Exploring smaller mortgage lenders can pay off if you’re hunting for the lowest possible interest rates and more of a personal touch.

Shopping Around Matters

Even if you lean toward a big bank, get a quote from a non-bank lender. Many customers report saving money and enjoying more responsive service by simply comparing offers side by side.

How Upscore Can Help

No matter which lender you choose, having your finances sorted makes the process smoother. Upscore’s Finance Passport gathers your verified financial details – income, expenses, assets and liabilities – into one secure profile. And it’s completely free!

Sign up for Upscore’s Finance Passport today!

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:

• Superannuation
• Investments
• Currency exchange

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!

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!