Two countries. Two different income types. A complex visa situation. Just two payslips. And a 14-day finance clause.
At Best Foot Forward Mortgage Solutions, we love a challenging home loan scenario, especially when we can help first home buyers achieve something they weren't sure was possible.
This recent Sunshine Coast purchase was a perfect example of why choosing an experienced mortgage broker who understands lender policy can make all the difference.
Our clients were a young couple purchasing their first home in Australia. Between them, they had worked incredibly hard to save $205,000, found a property they loved and were ready to take the next step.
There was just one challenge.
Their income, employment history and visa circumstances didn't fit neatly into a traditional bank's lending criteria.
And once their offer was accepted, we had just 14 days to secure finance approval!
The Scenario: Canadian Foreign Income Meets Australian Construction Employment
Our clients had two very different income sources.
Applicant One – Canadian Self-Employed Health & Fitness Influencer
Canadian citizen residing in Australia on a Subclass 461 visa.
Self-employed Health & Fitness Influencer.
Earned income from international sponsorship arrangements.
Sponsorship income deposited directly into Canadian bank accounts.
Held two Canadian credit cards.
Required a lender willing to assess foreign self-employed income.
Applicant Two – New Zealand Citizen Working in Construction
New Zealand citizen residing and working in Australia.
Recently commenced employment with a new construction industry employer.
Still within his probationary employment period.
Had received just two payslips from his new employer.
Had an established history of working in the construction industry.
No existing personal debts.
Both applicants had income that could support a mortgage, but demonstrating this to the right lender required careful research, documentation and an understanding of how different lenders assess foreign income and employment history.
$205,000 in Savings – Including $20,000 From a Puppy Photo Competition! 🐶
One of my favourite parts of this application was the couple's savings history.
They had accumulated an impressive $205,000 in cash savings.
They had scrimped, saved, sold belongings and worked hard to build their deposit.
And believe it or not, $20,000 of their savings came from winning second place in a Puppy Photo Competition! 🐶🏆
Yes, you read that correctly!
As mortgage brokers, we sometimes need to explain unusual deposits and demonstrate the source of funds to a lender.
In this case, we even had to provide an explanation for their competition winnings.
It's certainly one of the more memorable savings stories we've encountered!
Despite their strong savings position, the couple did not meet the eligibility requirements for the government First Home Buyer Scheme.
That meant we needed to investigate alternative lending options and establish the most cost-effective structure for their circumstances.
The Lending Strategy: One Property Owner, Two Incomes
This was where our research and understanding of lender policy became particularly important.
The couple had different citizenship and visa statuses, and we needed to consider how their ownership structure could affect the overall cost of purchasing their property.
After assessing their circumstances, we identified a strategy that involved:
Purchasing the property in the New Zealand citizen's name.
Including both applicants as borrowers and using their combined incomes to service the mortgage.
Finding a lender that would accept Canadian self-employed income.
Identifying a lender comfortable with the applicants' visa and employment circumstances.
Avoiding unnecessary additional property acquisition costs associated with the alternative ownership structure.
This approach allowed us to structure the application around the couple's financial circumstances while keeping the overall cost of purchasing their first home in mind.
The right lending structure can be just as important as the interest rate.
Proving Employment Continuity With Just Two Payslips
One of the biggest challenges was demonstrating the male applicant's employment stability.
He had recently started working for a new employer in the construction industry and was still on probation.
At the time of application, he had just two payslips.
For some lenders, this can create challenges, particularly when combined with another applicant earning foreign self-employed income.
However, we were able to demonstrate his established industry experience using:
Previous Australian Taxation Office tax return information.
Historical income evidence.
ASIC business registration records.
Current employment and payslip documentation.
This helped us demonstrate that although he was new to his current employer, he was not new to the construction industry.
There is a big difference between being new to a job and being new to an industry.
Understanding how lenders assess that distinction can open up opportunities for borrowers who have recently changed employers.
Finding the Right Home Loan
Following our lender research, we identified a lending solution that accommodated the applicants' circumstances.
The approved loan featured:
Interest rate: 7.25% following the recent interest rate increase.
Lender Protection Fee: 1%.
Income assessment: Combined Australian PAYG and Canadian self-employed income.
Employment assessment: Newly commenced construction role with supporting industry history.
Loan structure: Property held in one applicant's name, with both applicants on the mortgage.
The 1% Lender Protection Fee was an alternative to traditional Lenders Mortgage Insurance (LMI) under this particular lender's product.
Although the interest rate was higher than some mainstream lending products, the priority was finding a suitable lender that could assess both incomes and support the couple's home ownership goals and refinance them 12 months after they have another year’s financials in Australian currency.
The applicants also demonstrated that they could comfortably service the proposed mortgage.
Helping Our Clients Make an Informed Property Offer
Our work didn't stop at finding a lender.
The couple had already identified a property they wanted to purchase.
We helped them research the property using information available through Property.com.au and PropertyHub.com.au, including relevant property data to assist with their assessment of the asking price.
The objective was simple: help them make an informed decision and submit a fair offer based on the available information.
And the result?
Their offer was accepted! 🎉
Now the pressure was on.
The 14-Day Finance Clause That Became 16 Days!
The contract included a strict 14-day finance clause, with settlement scheduled for just 30 days after the contract was signed.
This was not an application we could simply submit and wait for an answer.
We worked over the weekend to prepare and lodge the application, coordinated supporting documents and ordered the property valuation.
The valuation came back supporting the contract purchase price.
But with multiple income sources, overseas banking arrangements, visa requirements and employment verification, there was plenty for the lender to assess.
We needed every single day of that 14-day finance period.
And then we needed a further two-day extension.
That meant 16 days of working through lender requirements, providing additional supporting evidence and keeping the application moving towards formal approval.
It was a challenging deadline, but we kept working towards the outcome our clients needed.
And the hard work paid off!
The Result: Formal Home Loan Approval! 🏡🎉
Formal home loan approval was granted!
Our clients secured finance for their first home, with settlement scheduled for 30 days after signing the contract.
The outcome was particularly rewarding because this application involved more than simply comparing home loan interest rates.
It required research, problem-solving, careful income verification, lender policy knowledge and persistence.
And most importantly, it meant two very happy first home buyers could move forward with their property purchase.
Living in Australia but Earning Foreign Income? We Can Help.
Many people assume that foreign income home loans are only relevant to Australian expatriates living overseas.
That's simply not the case.
At Best Foot Forward Mortgage Solutions, we also assist people who live in Australia but receive some or all of their income from overseas.
This can include:
Self-employed Australians receiving income from international clients.
Influencers, content creators and consultants paid by overseas businesses.
Australians returning home after working overseas.
New Zealand citizens working in Australia.
Eligible temporary visa holders purchasing property with their partners.
Borrowers with a combination of Australian PAYG and foreign self-employed income.
Applicants who have recently changed jobs but have an established employment history.
Every lender assesses foreign income, employment history and visa circumstances differently.
That's why it pays to have an experienced mortgage broker research your options before you apply.
Why Choose Shona Stephenson at Best Foot Forward Mortgage Solutions?
A Self-Employed Mortgage Specialist Who Understands Business Owners Because She's Been One Herself!
Shona Stephenson specialises in helping self-employed borrowers, particularly those earning foreign income, secure home loans in Australia.
Having been self-employed since the age of 21, Shona understands firsthand what it takes to establish, operate and grow a successful business.
She understands the challenges of managing business cash flow, fluctuating income, tax obligations and the financial complexities that come with being your own boss.
More importantly, she understands that a self-employed borrower's true financial position isn't always reflected in their taxable income.
Many lenders assess self-employed income differently, and understanding these differences can make a significant impact on borrowing capacity.
Shona knows how to analyse business financial statements, identify eligible income add-backs, understand business cash flow and recognise financial strengths that may not be immediately obvious from a tax return.
With the right lender and the right income assessment strategy, self-employed borrowers may be able to unlock greater borrowing capacity than they initially expected.
This is particularly important for borrowers who:
Earn self-employed income from overseas clients or businesses.
Receive foreign currency into international bank accounts.
Operate as sole traders, company directors or business owners.
Have legitimate business expenses that may qualify as lender income add-backs.
Have recently changed employment or transitioned between self-employment and PAYG.
Have complex income structures that don't fit traditional lending criteria.
It's About More Than Finding the Lowest Interest Rate
Shona believes great mortgage broking is about understanding the person behind the application.
It's about taking the time to understand how your business operates, how you generate income and how different lenders will assess your financial circumstances.
It's about identifying potential lending challenges early, researching lender policies and developing a lending strategy that works for you.
At Best Foot Forward Mortgage Solutions, we work for you, not the banks.
And when an application requires additional research, detailed financial analysis, a few more supporting documents or an entire weekend of work, Shona is prepared to put in the effort.
Because helping clients achieve their property ownership goals, particularly when they've been told their circumstances are too complicated, is what makes the hard work worthwhile.
Self-Employed? Earning Foreign Income? Let's Talk!
Whether you're an Australian earning income from overseas, a self-employed business owner, a company director or someone with a complex employment or visa situation, you deserve a mortgage broker who understands your circumstances.
Don't assume your taxable income tells the whole story when it comes to your borrowing capacity.
Contact Shona Stephenson, Self-Employed & Foreign Income Mortgage Specialist at Best Foot Forward Mortgage Solutions, to explore your lending options and discover what may be possible.
We work for you, not the banks.
Mobile: +61 417 693 281
Email: shona@bestff.com.au
Disclaimer: This case study is based on a client lending scenario, with identifying details omitted. Interest rates, fees, eligibility criteria and lender policies may change. The lending structure and outcome described were specific to these applicants and may not be suitable or available to other borrowers. All lending is subject to individual assessment and lender approval.
