Are There Any Banks That Will Give You an Investment Property Loan if You Earn Foreign Income?

tulip99 on 30/01/2024 - 16:31

I've just been knocked back for a small $81k loan from Bendigo Express Home Loans for my investment property. It should be worth at least $450k and I've had it for years and it's currently tenanted. I'm paying 9.24% with ANZ and every time I ring the retention dept they won't budge on the interest rate unless I agree to a fixed mortgage.

Bendigo said it was because of my foreign income from Amazon. I've been earning foreign income for several years and also have excellent savings.

Does anyone know if there are any banks/mortgage brokers who accept foreign income as the main income source? I'm tired of paying such a high interest rate. I realise it's a small home loan but you'd think it would be a good risk with how much the unit is worth compared to the mortgage left on it.

Financial

Comments

  • JimmyF on 30/01/2024 - 16:57
    +2

    I've just been knocked back for a small $81k loan
    I'm paying 9.24% with ANZ
    and also have excellent savings.
    I'm tired of paying such a high interest rate

    Then use your savings to pay down the loan, the smaller the amount, the less of a concern the % rate is. You're paying ~$7500 interest a year at the moment, pay $40 off it, and you'll only be paying half that.

    they won't budge on the interest rate unless I agree to a fixed mortgage.

    Then do that….

    • tulip99 on 30/01/2024 - 17:09
      -3

      But then I won't earn interest on my savings plus I like having savings in the bank. EG, I had to pay $16k to get my own roof fixed last year.

      • Drakesy on 30/01/2024 - 17:50
        +9

        But then I won't earn interest on my savings plus I like having savings in the bank

        Oh dear
        An offset account is the single biggest way to dodge tax.

        The interest that you earn will need to be 30% more than the interest (incorporating tax) that you're getting charged by the bank just to break even. So basically if your savings aren't earning 11-12% you're going backwards.

        No wonder the banks don't really want to loan you money.

      • hasher22 on 30/01/2024 - 18:23

        Put it in the offset, you can still withdraw for emergencies.

        An offset saves you more in the long run.

        There are online calculators that will calculate the savings for you

      • JimmyF on 30/01/2024 - 19:04

        But then I won't earn interest on my savings

        But you're paying at least 30% tax on that interest, so whatever you think you're getting, take 1/3 of the rate.

        plus I like having savings in the bank. EG, I had to pay $16k to get my own roof fixed last year.

        Offset account. Best of both words.

      • Brick50 on 30/01/2024 - 19:24

        Gobsmacked that OP has a savings account whilst having the loan, does your current loan not have a redraw or offset account?

        OP, I don't have a single dollar in a savings account, every week I get paid I transfer my salary directly onto my home loan. You can get an offset account and use a debit card to use this money, I have a redraw account and use credit cards.

        Each month, I pay the credit card bill with funds from the redraw facility. If I ever need cash it's available instantly via OSKO from my loan.

        I can't believe how much money you are throwing down the drain yet obviously seem frugal enough you are making a post about it, did you not know redraw and offsets were an option?

        You can effectively fully offset the loan now with your savings and pay no interest and leave any other savings you have in your HISA

          • hasher22 on 30/01/2024 - 21:36
            +2

            @tulip99: I suggest you get someone to do your finances and calculations.

            I get this short term vibe from you and I feel you have no interest in the long run savings and goals.

            For example with my offset vs a savings account, I am saving over 80k in interest over the term of the loan with the money I have in the offset now plus paying off the loan sooner, there is no way I'm going to get 80k worth of interest payments from the bank in a savings account with the money in my offset.

    • randomusername2017 on 30/01/2024 - 18:24
      +1

      pay $40 off it,

      To save 3k
      Post as a deal👍

  • Mechz on 30/01/2024 - 16:58
    +7

    Get a broker.

    • sachz on 30/01/2024 - 17:51

      ditto, broker. thats why they exist

    • Dyl on 31/01/2024 - 00:42

      OzBroker

    • tonka on 31/01/2024 - 01:15

      I have a rotten home loan because I trusted my long term (mainstream) broker. Signed me up for a new product , assured me it would stay competitive and I would have no penalty for it being an investment loan when I moved in in 12 months. Nope not long after interest rates stopped being competitive, maybe an extra 1%, I also pay a higher rate as it's an investment loan even though I live in it. And when I questioned the lender I was told it was a low doc loan and that's how it is. I had no need of a low doc loan, I had 70% deposit and permanent employment. Now with interest rate higher the only way I can get out is sell. The ahole broker will prob cost me close to $100K when I take into account stamp duty, agent fees and the higher interest.
      But yes a broker will prob get the dude a shady loan and tell the right BS to get it approved.
      But brokers are worse than insurance salesmen and real estate agents.

      • Mechz on 31/01/2024 - 08:59
        +1

        Can you not take them to the financial services ombudsman?

        • tonka on 31/01/2024 - 13:02

          Dunno, do we even have any comeback with how lenders set their variable rates?

      • tulip99 on 31/01/2024 - 10:39
        +1

        I'm sorry about your home loan :-(

        • tonka on 31/01/2024 - 13:07

          Cheers. My sister is having difficulty as well because this guy (Mortgage Choice broker) convinced her to overstate her means and borrow the max (she has no financial savvy at all). When I confronted him he just said, when she runs out of money in a few years she can sell.

  • pharkurnell on 30/01/2024 - 17:02

    Myself went to refinance my small loan, nobody was interested.. Im currently with ING..

    spoke to a mate in sydney who tried the same, with similar small loan, nobody was interested either.Not sure who he is with..

    I think it has more to do with the loan amount than income etc.

  • deme on 30/01/2024 - 17:02
    +6

    9.24% with ANZ

    🤣🤣🤣🤣🤣 I should buy ANZ shares

    • payless69 on 30/01/2024 - 17:20

      ANZ would not trust Bezos with a 9 foot pole!

  • MS Paint on 30/01/2024 - 17:56
    +1

    small $81k loan

    Didn't Donald trump start off with a small loan?

    • markathome on 30/01/2024 - 18:38
      +1

      Was he paying 9% on it though?

    • JimmyF on 30/01/2024 - 19:05

      Didn't Donald trump start off with a small loan?

      yeah, but it had a m at the end, not a k!

    • BoltThrower on 30/01/2024 - 21:42
      +1

      Yeah, loan from father. Trump says 1 million, a newspaper says it was $60mil, but he did turn it into billions.

  • miwahni on 30/01/2024 - 22:47
    +2

    Are you an Australian citizen living in Australia but earning foreign income? Or an Australian citizen living overseas and earning foreign income? As long as you're a citizen loans.com.au may be able to assist with a straight refinance for investment property. https://www.loans.com.au/home-loans/expat-home-loan
    I stress though that you need to be a citizen, not PR.

    Full disclosure - LCA is owned by Firstmac (my employer). I'm no longer involved in the credit assessment process but you can call or apply online for LCA. Or if you want to go through a broker, they will direct your application through Firstmac although the rates are slightly dearer.

    • tulip99 on 31/01/2024 - 10:39

      I'm a citizen living in Australia. Thanks for the link - I'll check it out.

  • tonka on 31/01/2024 - 01:25

    Sometimes these are not being evaluated with any brainpower. I got knocked back for a credit card by some overseas processing center because my bank statement didn't label the income types. ie Tenant didn't put the word 'rent' in description when transferring. They did however badly want to use an item on my statement that said 'rent' which was a one off payment from a mate, which wasn't even on my application.

  • tulip99 on 05/03/2024 - 18:25
    +1

    UPDATE: Since it said editing was locked when I tried to edit my original post, I'll put it here.

    Loans.com.au approved me for an $82k loan with an interest rate of 6.34% with an offset, no monthly fees, a valuation fee of $230. Compared to ANZ's 9.24% and $10 monthly fee. The refinancing happened today.

    Thanks, Miwahni, for suggesting them.

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