British expats and investors can buy property in Australia — here is how.
Getting an Australian home loan as a UK resident is absolutely possible. Australian real estate has long attracted British buyers, whether they are relocating permanently, moving for work or investing from overseas. The process differs from what you may be used to in the UK, so knowing the rules before you start will save you time and avoid surprises.
As a UK citizen or permanent UK resident, Australian lenders treat you as a foreign national unless you are the spouse or partner of an Australian citizen or permanent resident and you are buying property together as joint tenants. This guide covers the key steps, from government approval to borrowing limits and loan types. You can also check your borrowing power to get a sense of what you could afford in the Australian market.
FIRB approval
Before you can purchase residential or investment property in Australia, you need approval from the Foreign Investment Review Board (FIRB). This is an Australian Government body that oversees the level of foreign ownership of property and other assets in Australia.
FIRB approval is required for UK citizens regardless of whether you are buying to live in or as an investment. The process involves lodging an application and paying a fee based on the property value. Most straightforward applications are approved, but there are restrictions on the types of property foreigners can buy — particularly around established dwellings versus new builds.
If you are buying an investment property from within the UK and have no Australian visa, you still need FIRB approval, but you do not need a visa to qualify for the mortgage itself.
Visas and eligibility
If you are living in Australia on a visa, your visa type can affect which lenders will consider your application and on what terms. The most commonly accepted visas include the 457 Temporary Business (Long Stay) visa and various partner and spouse visa subclasses.
As a temporary resident or foreign citizen, you are generally not eligible for the First Home Owner Grant (FHOG). However, if your partner or spouse is an Australian citizen or permanent resident and you are purchasing the property together as joint tenants, you may qualify for the FHOG in some states.
In the UK there is no equivalent cash grant for first home buyers. The HomeBuy scheme (called FirstBuy for first-time buyers) provides a shared equity arrangement rather than a direct grant, and it applies only to selected new-build properties. The Australian FHOG is a straightforward cash payment, though the amount varies by state.
How much can you borrow
The amount you can borrow depends on your residency status, income and the lender you apply through. Under certain conditions, UK residents can borrow up to 95% of the property value — known as the loan-to-value ratio, or LVR (called LTV in the UK). However, most applications from UK residents are approved at a maximum of 80% or 90% LVR.
For investment property purchases, foreign investors are typically limited to 80% LVR. If you borrow above 80% LVR, Lenders Mortgage Insurance (LMI) will usually apply. LMI protects the lender if you default, and it is an additional upfront cost paid by the borrower.
The Australian home loan guide covers LVR rules and key features in more detail for anyone new to how Australian mortgages work.
Rates and loan types
With the right lender, you can access the same discounted interest rates available to Australian citizens. The key is applying through a lender that is comfortable with non-resident applications. Many mainstream banks impose restrictions or higher rates for foreign applicants, which is why using a mortgage broker who specialises in this area makes a real difference.
In Australia, an investment loan (sometimes called a buy-to-let mortgage in the UK context) works similarly to a standard home loan, with the property securing the debt. Foreign investors from the UK can usually borrow up to 80% of the property value for an investment purchase.
Fixed rates are available in Australia for up to five years with most lenders, and up to 15 years with some. This is comparable to the UK, where fixed periods typically run from two to ten years. Unlike the US market, variable rates are more popular than fixed rates in both Australia and the UK.
Refinancing your Australian property works the same way as refinancing any home loan — it is called refinancing rather than remortgaging in Australia, but the outcome is the same. You can switch to a better rate, access equity or consolidate debt.
For a detailed look at what your purchase costs would look like including stamp duty (called Stamp Duty Land Tax in the UK), use our Australian stamp duty calculator.
What trips up UK investors
Several common issues catch UK investors off guard when applying for an Australian home loan. Being aware of these in advance can save you significant time.
If you are also interested in how the process compares for buyers from other countries, see our guide for US citizens buying property in Australia.
Common questions
Q: Do UK citizens need FIRB approval to buy property in Australia?
Yes. UK citizens must apply for approval from the Foreign Investment Review Board before purchasing property in Australia. This applies whether you are buying to live in, buying as an investment or purchasing from overseas without a visa. The approval process involves an application and a fee based on the property value.
Q: Can a UK resident get an Australian home loan without visiting Australia?
Yes, in many cases. Some lenders and brokers can manage the entire application process remotely. You will still need to provide identity documents, proof of income and evidence of your deposit. Applying through a mortgage broker who specialises in non-resident loans gives you access to lenders set up for overseas applications.
Q: What LVR can a UK resident borrow at in Australia?
Most UK residents are approved at up to 80% or 90% LVR. In some circumstances, 95% LVR is possible. Foreign investors buying for rental purposes are typically limited to 80% LVR. If you borrow above 80%, Lenders Mortgage Insurance will generally apply, adding to your upfront costs.