For many Australians living overseas, one of the biggest misconceptions is that you need a 20% deposit to purchase property back home. While a larger deposit can certainly provide more options, it isn’t always necessary.
In 2026, a number of Australian lenders continue to offer home loans to eligible Australian expats with deposits of less than 20%. The key is understanding which lenders are expat-friendly, how your overseas income is assessed, and what strategies can help strengthen your application.
Can Australian Expats Buy Property with Less Than a 20% Deposit?
The short answer is yes.
Depending on your country of residence, income source and overall financial position, many Australian citizens living overseas may be able to purchase a property with as little as a 10% deposit. Some lenders may consider higher loan-to-value ratios (LVRs), while others require a larger deposit depending on the currency you’re paid in or the country where you work.
Every lender has different policies, so speaking with a mortgage broker who specialises in expat lending can make a significant difference to your borrowing options.
Why Do Some Lenders Require Larger Deposits?
Australian banks assess expat borrowers differently from applicants living in Australia. This is because lending to someone earning overseas income can involve additional considerations such as:
- Currency fluctuations.
- Different employment laws and income verification.
- Overseas tax systems.
- Country-specific lending policies.
- The ease of verifying employment and financial documents.
As a result, one lender may require a 20% deposit while another could be comfortable lending with only 10%.
What Deposit Might You Need?
While every application is assessed individually, a general guide is:
| Deposit | Typical Scenario |
| 10% | Strong application with stable overseas employment, acceptable currency and lender policy. |
| 15% | Available with many lenders where additional risk factors exist. |
| 20% or more | Provides access to a broader range of lenders and may reduce overall borrowing costs. |
The right option will depend on your personal circumstances rather than a one-size-fits-all rule.
Can You Use Equity Instead of Cash?
Absolutely.
If you already own property in Australia, the equity you’ve built may be used instead of contributing a full cash deposit.
For example:
- Your existing Australian property has increased in value.
- You refinance to access available equity.
- The equity contributes towards the deposit and purchasing costs for your next property.
This strategy can help expats enter the market sooner without needing to save a large cash deposit while living overseas.
What About Lenders Mortgage Insurance (LMI)?
If you’re borrowing more than 80% of the property’s value, Lenders Mortgage Insurance (LMI) may apply.
LMI protects the lender—not the borrower—and is generally payable when the loan exceeds an 80% LVR.
The cost varies depending on:
- Property value.
- Loan amount.
- Deposit size.
- Individual lender policy.
Some lenders allow the LMI premium to be added to the loan, reducing the amount of upfront cash required.
How Is Overseas Income Assessed?
Not all overseas income is treated equally.
Lenders may consider:
- The country where you’re employed.
- Your currency of income.
- Employment type (PAYG or self-employed).
- Length of employment.
- Bonuses, commissions and allowances.
- Tax arrangements.
Some lenders also apply a “shading” to foreign income, meaning they assess only a percentage of your earnings to account for exchange rate fluctuations.
Choosing the right lender can significantly improve your borrowing capacity.
Ways to Improve Your Chances of Approval
If you’re planning to purchase Australian property while living overseas, consider the following:
- Save the largest deposit you comfortably can.
- Maintain a strong repayment history on existing debts.
- Avoid taking on unnecessary personal loans or credit card debt before applying.
- Keep employment stable where possible.
- Have your overseas financial documents organised and up to date.
- Speak with an expat mortgage broker before signing a contract.
Preparation can often make the approval process faster and less stressful.
Common Mistakes Australian Expats Make
Some of the most common issues we see include:
- Assuming every bank has the same lending policy.
- Waiting until after signing a contract to seek finance advice.
- Underestimating the documentation required for overseas income.
- Believing a 20% deposit is the only option.
- Applying directly with a lender that doesn’t specialise in expat lending.
A little planning upfront can save time, money and disappointment.
The Bottom Line
Buying property in Australia while living overseas is entirely achievable—and in many cases, you don’t need a 20% deposit to make it happen.
Every lender has different policies, and the right lending strategy will depend on your income, country of residence, deposit and long-term property goals. By obtaining advice early, you can understand your borrowing capacity, identify lenders that suit your circumstances, and move forward with confidence.
Need Help with an Australian Expat Home Loan?
Whether you’re based in London, Singapore, Dubai, New York or anywhere else in the world, we specialise in helping Australian expats secure competitive home loans.
If you’re wondering how much you could borrow, how much deposit you’ll need, or which lenders are available to you, get in touch today for an obligation-free assessment. We’ll help you explore your options and guide you through the process from application to settlement.