Which Australian Lenders Still Accept Expat Home Loan Applications in 2026?

TL;DR: The expat lending landscape has thinned out considerably in 2026. Macquarie has stopped lending to expats altogether. Several other lenders have reduced maximum LVRs or tightened eligibility. A smaller group of lenders — including HSBC Australia and specialist non-bank lenders — remain open. Knowing who's actually willing to lend to you before you apply matters a lot more than it used to.

The market has changed — and not in expats' favour

A few years ago, you had a reasonable number of mainstream lenders willing to write Australian home loans for expats. The process wasn't simple, but the options were there. That's changed in 2026.

Macquarie Bank — which had been one of the more expat-friendly major lenders — has ceased expat lending entirely. Bank Australia and Virgin Money have also pulled out of the space. Heritage Bank dropped its maximum LVR for expats from 80% to 70%. BankWest cut from 80% to 60%.

That's a meaningful reduction in the available pool. And it's not because Australian expats are worse borrowers — the default rates aren't showing that. It's a combination of regulatory pressure from APRA's new DTI cap, increased compliance complexity around foreign income verification, and lenders choosing to simplify their risk profiles.

The practical result: if you're approaching this the way you might have in 2023 — going to your usual bank, putting in an application, seeing what comes back — you're likely to get stuck. Not because you don't qualify, but because the lender you went to may have quietly stopped lending to your profile.

Who's still open?

HSBC Australia has maintained its expat lending program and remains one of the more actively competitive options for internationally mobile borrowers — which makes sense given its global footprint. A number of specialist non-bank lenders are also active, and several second-tier banks that weren't well-known for expat lending a few years ago have become more relevant as the major bank options have narrowed.

The honest answer is that the landscape shifts. Lender appetite, credit policy, and available capacity under APRA's new DTI rules all change on timeframes of weeks to months. A lender that was actively competing for expat business in January may have tightened by March. What I can tell you is the current state — but that's a conversation, not a blog post, because it changes.

General comparison sites are even less reliable for expats than they are for domestic borrowers. The rate tables on those sites don't tell you whether the lender will actually accept your income type or country of residence. You're looking at a menu without knowing which items are available to you.

Why lender selection matters more than rate

This is something I've seen trip people up. They spend time comparing interest rates across lenders — 6.10% versus 6.25% — without first checking whether those lenders will even consider their application.

For expats in 2026, the first question isn't "which lender has the best rate?" It's "which lenders will assess my income type, in my currency, at an LVR that works for my deposit, under current policy?" That filter narrows the list considerably. Then you look at rate within that filtered set.

Getting this sequence wrong is expensive. A declined application from a lender that doesn't do expat lending isn't just embarrassing — it sits on your credit file as an enquiry and can affect subsequent applications. Doing it twice is worse.

Currency acceptance is also a variable

Not all lenders accept all currencies. SGD, HKD, USD, EUR, and GBP are accepted by most lenders still operating in the expat space. AED is accepted by fewer. Less common currencies have even fewer options.

Beyond acceptance, lenders apply different shading rates — the discount they apply to foreign income before assessment. SGD and HKD are typically treated more favourably (10–15% shading) than currencies perceived as more volatile. Some lenders will also distinguish between fixed salary paid in foreign currency and variable components like bonuses and allowances.

The combination of currency type, income structure, and deposit size determines which lenders are realistic options for you. That's not a formula you can run on a comparison site. It requires knowing how each lender's credit policy currently reads and what their underwriters will accept at lodgement.

Existing borrowers — the refinance question

If you have an existing Australian loan with Macquarie, Virgin, or Bank Australia — lenders that have pulled back from expat lending — your current loan typically stays in place. They're not calling in loans from existing customers. But when it comes time to refinance, you're refinancing to a new lender, and that new lender has to accept you.

This is creating a situation where some expats are stuck. Their current lender's rate has moved up with the RBA. They'd like to refinance to a better product. But because the market has thinned out, moving isn't as straightforward as it was in 2023.

In some cases, the right move is still to go external — there are lenders who will take that refinance. In others, it's better to negotiate with the existing lender directly, because the friction of moving (credit enquiry, new application, foreign income requalification) isn't worth a marginal rate improvement.

To get a sense of where you sit and what your options are, the borrowing capacity tool is a good starting point — and then a conversation to map out the lender landscape for your specific income structure.

What this means practically

A few things to take from this:

• Don't assume the lender you used last time is still an option — the market has changed materially since 2023–2024
• Don't apply speculatively across multiple lenders hoping one sticks — each application is a credit enquiry
• Policy fit comes before rate comparison — know which lenders will consider you before you look at rates
• Currency and income structure both affect your lender options — not just your income amount

If you want a current read on which lenders are realistic for your situation — currency, income structure, LVR, deposit — book a call and we can walk through it properly. Takes about 20 minutes and gives you a much clearer picture of where to target.

Frequently Asked Questions

Which Australian lenders have stopped lending to expats in 2026?

Macquarie Bank ceased expat lending entirely in 2026. Bank Australia and Virgin Money also stopped accepting expat applications. Heritage Bank cut its maximum LVR for expats from 80% to 70%, and BankWest reduced its expat LVR from 80% to 60%.

Which lenders are still open to Australian expat home loans?

HSBC Australia, several specialist non-bank lenders, and a number of second-tier banks remain active in the expat lending space as of early 2026. Lender appetite and policy can change quickly — which is why a specialist broker with current lender relationships is more useful than a general comparison site.

Why are Australian lenders pulling back from expat lending?

Several factors: APRA's new DTI cap making high-ratio lending harder to manage, increased compliance complexity around foreign income verification, and some lenders reassessing risk exposure to borrowers without a domestic employment and banking footprint. It's a regulatory and risk management decision, not a reflection of expat creditworthiness.

What happens if I apply to a lender that doesn't accept expats?

If a lender declines your application, it shows on your credit file as a credit enquiry. Multiple declined applications can affect your credit score. This is why vetting lender policy before lodging is critical.

Does the currency I earn in affect which lenders will consider me?

Yes. Most lenders will accept SGD, HKD, USD, EUR, and GBP income for assessment. AED and other currencies are accepted by fewer lenders. The shading rate also varies by currency — SGD and HKD are generally treated more favourably than currencies with higher volatility.