If you’re an Australian expat living abroad and dreaming of investing back home, you’re not alone. Many expats want to take advantage of Australia’s robust property market—particularly in high-demand cities like Melbourne. But navigating financing options from overseas can be complex, especially with changing lender policies and fluctuating borrowing capacities.
We recently helped an Australian expat family living in Saudi Arabia explore their options for purchasing a second investment property in Melbourne. Here’s a detailed look into their scenario and how we identified the right financing strategy.
Client Profile
Location: Saudi Arabia
Monthly Income: 60,000 SAR (~AUD 295,000 annually)
Current Assets:
Sydney investment property valued at AUD 1,000,000
Rental income: AUD 800/week (~AUD 3,467/month)
Existing Loan:
With Commonwealth Bank
Loan amount: AUD 700,000
Interest rate: 6.5%
25 years remaining
Monthly Living Expenses:
Living: 10,000 SAR
Rent: 15,000 SAR
Objective: Purchase a second investment property in Melbourne
Equity Position Breakdown
Current Property Value: AUD 1,000,000
Loan Balance: AUD 700,000
Available Equity (capped at 80% LVR): AUD 100,000
Lender Comparison: What Each Bank Offers to Expats
| Feature | CBA | Heritage Bank | Bankwest | MA Money |
|---|---|---|---|---|
| Product | Standard Variable | Discount Variable | Complete Variable | Basic Variable |
| Interest Rate | 6.22% | 6.15% | 6.24% | 7.49% |
| Offset Account | ✅ | ✅ | ✅ | ✅ |
| Redraw Facility | ✅ | ✅ | ✅ | ✅ |
| Risk Fee | 0% | 0% | 0% | 0.75% |
| Max LVR (Expat) | 80% | 70% | 80% | 80% |
| Borrowing Capacity | $0 | $500,000 | $850,000 | $1,600,000 |
| Cashout Allowed (Any Purpose) | ✅ | ❌ | ✅ | ✅ |
| Construction Loans Allowed | ✅ | ❌ | ✅ | ❌ |
Key Takeaways
CBA: No borrowing capacity based on income, but permits cashout and construction lending.
Heritage Bank: Offers up to $500,000, though with less flexibility.
Bankwest: Allows $850,000 borrowing, with competitive rates and flexible expat policies.
MA Money: Tops the list with $1.6M borrowing capacity, but comes with a higher interest rate and fees.
Strategic Recommendation
After a thorough analysis, Bankwest stands out as the most balanced option for this client. It offers:
Strong borrowing capacity
Competitive interest rates
Flexible expat-friendly policies
While MA Money could be considered for maximizing borrowing power, it carries higher costs which may not justify the added risk for this particular client.
Next Steps
Refinance the Sydney investment property to unlock the available $100,000 in equity.
Secure pre-approval through Bankwest.
Begin property searches in Melbourne within the $700,000–$850,000 range.
Thinking of Buying While Overseas?
If you’re an Australian expat considering property investment back home, getting the right lender is crucial. Not all banks evaluate overseas income the same way—and that can make or break your borrowing potential. Want a full breakdown of this case? Watch our Director Jeremy Harper explain the strategy in detail on our Youtube Channel: