The short answer: there's no single best lender for an Australian expat. There's the lender whose policy fits your income, your currency and your deposit. Fewer lenders take overseas applications than a few years ago. Macquarie stopped taking applications from borrowers living outside Australia in September 2024. HSBC, long one of the more expat-friendly banks, announced on 31 July 2026 that it is closing its Australian retail bank and selling its home loan book (HSBC Australia). So the first question isn't who has the lowest rate. It's who will assess you at all, and how.
Lender positions in this article were checked on 5 October 2026.
Who's still lending to expats in 2026?
A few years ago, a reasonable number of mainstream lenders would write an Australian home loan for someone living overseas. The process wasn't simple, but the options were there. That list is shorter now.
Two changes are on the public record. Macquarie removed its expat lending policy from 9 September 2024. Since then, applicants must live in Australia and be Australian residents for tax purposes. HSBC Australia's home loan page now says it is no longer accepting applications. On 31 July 2026 it agreed to sell its Australian home and personal loan portfolio to funds managed by Blackstone. It is winding down the rest of its Australian retail business over the following 18 months (HSBC Holdings announcement, 31 July 2026).
Other lenders have tightened quietly rather than leaving. They've cut the maximum LVR for overseas borrowers, narrowed the currencies they accept or changed the income they'll count. A lender that was competing for expat business in January may have tightened by March. That's why I won't publish a "currently open" list in a blog post. It would be out of date before you read it. A current read on your situation is a conversation.
Comparison sites are even less reliable for expats than for local borrowers. A rate table doesn't tell you whether the lender will accept your income type or your country of residence. You're looking at a menu without knowing which dishes are available to you.
Why lender selection matters more than rate
Most people start by looking for the lowest rate. For an Australian expat, that's the wrong starting point.
Before rate matters, you need a lender who will accept your income. That lender also has to assess it in a way that reflects what you actually earn. Two lenders can treat the same SGD or HKD salary differently enough to move your maximum loan by $200,000 or more.
Look at it the other way round. A 0.25% rate difference on a $900,000 loan is roughly $188 a month in interest. If the lower-rate lender discounts your foreign income more heavily, you might be approved for $700,000 instead of $900,000. Then the rate comparison doesn't matter, because you can't buy the property.
So the order is policy fit first, then rate within the lenders that fit. Getting the order wrong is expensive. Every application you lodge is recorded as a credit enquiry on your Australian credit file, whether or not it's approved. Several in a short space can make the next lender more cautious.
What lenders assess differently for expats
Foreign income shading. This is the discount a lender applies to foreign currency income before it runs your numbers (how foreign income shading works). It varies by lender and often by currency. The gap between two lenders can be 20% or more of the income they'll count. A SGD salary may be treated differently from an AED salary at the same lender.
Currency acceptance. Not every lender accepts every currency. SGD, HKD, USD, EUR and GBP are generally accepted by the lenders still working in the expat space. AED and less common currencies have a shorter list.
Income components. Base salary is almost universally accepted. Bonuses, RSU vesting, housing allowances and schooling allowances are treated very differently. Some lenders average bonuses over two years, some use the most recent year, and some exclude variable income altogether. If a big part of your package is allowances or equity, this matters a lot.
LVR for borrowers living overseas. Some lenders cap the loan-to-value ratio for overseas borrowers well below what they'd offer a local borrower. Others will go to 80% for the right currency and income. A higher ceiling means a smaller deposit, which matters when your savings sit in more than one currency.
Employment structure. Self-employed borrowers, contractors and people on fixed-term contracts get different treatment from lender to lender. Some lenders require permanent employment.
Processing capability. Some lenders have credit teams that know foreign income documentation well. Others send overseas applications through their standard channel, which can mean requests for documents that don't exist in the same form overseas. It's operational, but it affects how long you wait and how likely approval is.
The three kinds of lender still in the expat market
Major banks with expat policies
The major banks have policies that cover foreign income and borrowers living overseas. They offer a full product range: fixed rates, offset accounts, redraw and portfolio structures. The trade-off is that they tend to be more conservative on shading and LVR for expats, and slower when volumes are high. If you're salaried with one employer and paid in a major currency, a major bank can work well. If your income is bonus-heavy or in a less common currency, a major bank may undervalue it.
Second-tier and specialist lenders
Some second-tier lenders have built real capability in expat lending. They often treat foreign income, bonuses and allowances more favourably. For strong profiles, some lend to a higher LVR. Their products can be narrower and the brand less familiar. These are often the lenders that know Singapore, Hong Kong and Dubai income structures best.
Mutuals and credit unions
A few credit unions and mutuals lend to expats, mostly to people with an existing member relationship. Access is usually limited to specific professions or communities, and their expat policy knowledge varies. Worth knowing about, but not usually where we start.
If you already have a loan with a lender that's pulled back
A lender leaving the expat market doesn't usually mean your existing loan changes. Macquarie, for example, said existing loans to customers living overseas stay in place. Those customers can't apply for additional lending or add a borrower while they're overseas.
HSBC is different, because the loan book itself is being sold. Under the agreement, Pepper Money will service the loans once the sale completes. Completion is expected in the first half of 2027 and is subject to regulatory and competition approvals (HSBC Holdings announcement).
The harder part comes when you want to refinance. A new lender has to accept you as an overseas borrower, on today's policy. Sometimes there's a lender who will take that refinance. Sometimes it's better to negotiate with your existing lender, because moving means a new credit enquiry and having your foreign income assessed again.
If you want to see how lenders would look at your numbers now, check your borrowing capacity first.
Questions to ask before you compare rates
- How does this lender shade my currency?
- Do they count my bonus, RSUs or allowances, and how?
- What's their maximum LVR for someone living where I live?
- Will they accept my employment structure (permanent, contract, self-employed)?
- Do they need certified physical copies of documents, or will they accept digital certification?
- How long are they currently taking on expat applications?
The answers narrow the field quickly. Once you're comparing lenders that all fit, rate and product features decide it.
How we match clients to lenders
We work across a broad panel of Australian lenders, and a meaningful subset have genuine expat capability. With every new client, our first step is mapping the income to the lenders whose policy fits it.
A Singapore-based client paid in SGD with a large bonus looks very different from a Dubai-based client on a tax-free AED salary with no bonus. The loan amount might be the same, but the income is different, so the lender is different. We've put enough applications through enough lenders to know which ones handle which income types well in practice, not just on paper.
Want a current read on your options?
A capacity check takes 24 to 48 hours and gives you a clear answer before you commit to anything. Book a call and we'll walk through which lenders fit your currency, income and deposit.
Frequently asked questions
Which Australian lenders have stopped lending to expats?
Macquarie stopped accepting applications from borrowers living outside Australia on 9 September 2024. HSBC Australia is no longer accepting home loan applications. It announced on 31 July 2026 that it is selling its Australian home loan book and closing its Australian retail bank. Other lenders have tightened their LVR limits or their accepted currencies rather than leaving.
Is there a single best lender for Australian expats?
No. The right lender depends on your currency, your income structure, your deposit and where you live. Policy fit comes first, and rate is compared only among the lenders that fit.
What happens if I apply to a lender that doesn't accept expats?
The application is recorded as a credit enquiry on your Australian credit file whether or not it's approved. Several applications in a short period can make later lenders more cautious, so check lender policy before you lodge.
Does the currency I earn in affect which lenders will consider me?
Yes. SGD, HKD, USD, EUR and GBP are generally accepted by lenders active in expat lending. AED and less common currencies have fewer options. How much of the income a lender counts also varies by currency and by lender.
What happens to my HSBC home loan?
For now it stays with HSBC. Once the sale to Blackstone completes, which is expected in the first half of 2027 and needs regulatory approval, Pepper Money is to service the loans.
Sources
- HSBC Holdings plc: Disclosable transaction, HSBC to sell its AUD36 billion Australian home and personal loan portfolio to Blackstone, 31 July 2026 (accessed 5 October 2026)
- HSBC Australia: Home loans (accessed 5 October 2026)
Aussie Expat Home Loans holds Australian Credit Licence 509125. This article is general information only and doesn't take your personal circumstances into account. It doesn't quote interest rates or estimate what you can borrow. Lender positions are current to 5 October 2026. Lender policies vary and change over time. Before acting, consider your own situation and seek advice specific to it.
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