Being a non-resident does not automatically prevent you from accessing commercial finance in Australia.
Some specialist lenders consider non-resident commercial loans for overseas borrowers, temporary residents and other borrowers who may fall outside the residency requirements of major banks.
These loans can potentially be used to purchase or refinance commercial property or for other eligible business and investment purposes, depending on the lender.
You may also see these products referred to as no residence commercial loans, overseas borrower loans or international borrower loans.
The lending criteria can be quite different from a standard Australian commercial loan, so understanding the borrower, security and purpose of the loan is important before applying.
What Is a Non-Resident Commercial Loan?
A non-resident commercial loan is commercial finance available to an eligible borrower who is not an Australian citizen or permanent resident.
Depending on the lender, this could potentially include:
- People living overseas who want to invest or conduct business in Australia
- Temporary Australian residents
- Borrowers holding certain temporary visas
- Australian companies with foreign directors or shareholders
- Overseas investors purchasing eligible Australian commercial property
Every lender defines an acceptable non-resident borrower differently. Your citizenship, visa status, country of residence, Australian business structure and the type of property or asset involved can all affect the available options.
For a broader overview of available lending structures, see our commercial and business finance options.
Can a Non-Resident Get a Commercial Loan in Australia?
Yes, some lenders consider non-resident borrowers for commercial finance.
Major banks may have stricter residency requirements, while specialist commercial and non-bank lenders can have different policies.
This means a borrower who does not meet one lender’s residency requirements may still have other options available, depending on the proposed transaction.
Approval will still depend on factors including the borrower, proposed security, purpose of the loan, deposit or equity available and the lender’s individual credit policy.
If the finance is connected with purchasing a business property, our guide to commercial property loans explains how these facilities generally work.
What Can Non-Resident Commercial Finance Be Used For?
The permitted loan purpose varies between lenders, but non-resident commercial finance may be considered for purposes such as:
- Purchasing commercial property
- Refinancing an existing commercial loan
- Purchasing an Australian investment property where eligible
- Business investment
- Raising funds against an existing commercial property
- Eligible business expansion or working capital purposes
For businesses that need funding for growth, stock, cash flow or other operating requirements rather than a property purchase, you can also explore our business loan options.
What Property Can Be Used as Security?
Commercial property can potentially be used as security for a non-resident commercial loan.
Depending on the lender and application, this could include:
- Warehouses
- Factories and industrial properties
- Offices
- Retail properties
- Commercial investment properties
- Other acceptable commercial real estate
The lender will normally arrange a valuation and assess factors such as the property’s location, use, condition, marketability and any existing lease arrangements.
Some lenders may also accept residential property as security for a commercial-purpose loan, although requirements vary considerably between lenders.
If the transaction involves a warehouse, office, shop, factory or other business premises, learn more about financing commercial property.
How Much Can a Non-Resident Borrow?
There is no single maximum loan amount or Loan-to-Value Ratio (LVR) that applies to all non-resident commercial loans.
The amount available can depend on:
- Your residency or visa status
- Country of residence and citizenship
- The value and type of commercial property
- How much deposit or equity you have available
- Your income and financial position
- The proposed loan purpose
- Whether the property is owner-occupied or an investment
- The lender’s non-resident policy
Specialist lenders may apply different maximum LVRs to commercial property compared with residential security.
For this reason, the deposit required for a non-resident commercial purchase can differ significantly between lenders and transactions.
What Will a Lender Assess?
Non-resident lending can require a more detailed assessment than a straightforward Australian commercial application.
A lender may consider:
- Your passport and identification
- Australian residency or visa status
- Your country of residence
- Income and employment or business history
- Australian and overseas assets and liabilities
- Company and business structures
- Source of deposit or equity
- The commercial property being offered as security
- The purpose of the loan
- Your proposed repayment or exit strategy
If documents have been prepared overseas or in another language, additional verification or translated documents may also be required.
The exact documents required will depend on the lender and the complexity of the transaction.
Do Foreign Investment Rules Apply?
Potentially.
Getting finance and being legally permitted to acquire an Australian property are two separate issues.
Australian foreign investment rules can apply when a foreign person acquires an interest in Australian commercial land. Whether notification or approval is required can depend on factors including the type and value of the property, whether the land is vacant or developed and the type of foreign investor.
The Australian Government states that foreign investors are generally required to notify the Treasurer before acquiring an interest in commercial land when the investment exceeds the applicable monetary threshold.
You can review the current Australian Government guidance for foreign investment in commercial land before proceeding.
Thresholds differ depending on the type of land and investor and can change over time. The Australian Government publishes its current foreign investment monetary thresholds online.
Borrowers should obtain appropriate legal and tax advice to determine how these rules apply to their particular transaction.
What About Temporary Visa Holders?
Being in Australia on a temporary visa does not necessarily mean commercial lending is unavailable.
However, eligibility can vary considerably based on the particular visa and lender.
A lender may consider:
- The type of visa you hold
- How long remains on the visa
- Your Australian employment or business income
- Your intended length of stay in Australia
- Whether you have Australian or overseas assets
- The strength of the proposed commercial security
Because lender policies vary, it can be useful to assess the visa and proposed transaction before submitting a formal application.
Are Interest Rates Higher for Non-Residents?
They can be, but there is no single non-resident commercial loan interest rate.
Pricing can depend on the lender, property, LVR, loan size, borrower profile and overall risk of the transaction.
Specialist commercial lenders may price a loan differently from a major bank, particularly where the borrower does not meet standard residency requirements.
When comparing options, it is therefore important to consider more than just the advertised interest rate.
Other considerations can include:
- Establishment fees
- Valuation costs
- Legal costs
- Ongoing fees
- Loan term
- Interest-only options
- Early repayment conditions
- Security requirements
Can Foreign Income Be Used?
Potentially, although the treatment of foreign income depends heavily on lender policy.
A lender may want to understand where the income is earned, the currency it is paid in, how consistently it has been received and whether appropriate supporting documentation is available.
Currency movements and different tax systems can also affect how overseas income is assessed.
If the loan is for an Australian business, the lender may instead place greater emphasis on the Australian company’s financial position and the commercial security being offered.
Why Use a Commercial Loan Broker for a Non-Resident Application?
Non-resident commercial lending is an area where lender policy can differ considerably.
One lender may not accept your residency status at all, while another specialist lender may consider the same transaction subject to its normal credit requirements.
A commercial loan broker can help assess:
- Your residency or visa position
- The commercial property or security
- The required loan amount
- Your available contribution
- The purpose of the finance
- Your income and financial position
- Which lenders may consider the scenario
Our guide to working with a commercial loan broker explains how a broker can help compare lenders, structure an application and manage the lending process.
LoanBrix can assess the proposed transaction, compare relevant options from our lender panel and assist with preparing and managing the application.
The lender ultimately determines whether the application meets its credit criteria and whether finance can be approved.
Just like with any other loan, policies are always changing based on the lenders’ view on the market. When you use a commercial loan broker like LoanBrix, we make mortgage policies easy and take the hassle off choosing a lender.
Non-Resident Commercial Loan FAQs
Can a foreigner buy commercial property in Australia?
Foreign investors can potentially acquire commercial property in Australia, although Australia’s foreign investment rules may require notification or approval depending on the investor and property involved.
The Australian Government’s foreign investment information for Australian land provides an overview of the rules that may apply.
Can an overseas borrower get an Australian commercial loan?
Yes, some specialist lenders consider overseas and non-resident borrowers for commercial loans. Eligibility depends on the borrower, security, loan purpose and individual lender policy.
Do I need Australian income?
Not necessarily in every scenario. Some lenders may consider overseas income or alternative commercial lending structures. How the income is assessed will depend on the lender.
Can I use commercial property as security?
Yes. Some lenders may allow eligible commercial property to secure finance for non-resident borrowers, subject to valuation, LVR and credit requirements.
Is a no residence commercial loan the same as a non-resident commercial loan?
The terms may be used to describe the same general concept: commercial finance for borrowers who do not meet standard Australian residency requirements. Non-resident commercial loan is the clearer terminology and is the term used throughout this guide.
Looking for a Non-Resident Commercial Loan in Australia?
If you live overseas, hold a temporary visa or have a more complex residency situation, being declined by one lender does not necessarily mean there are no commercial finance options available.
LoanBrix can assess your circumstances and compare suitable commercial property finance and commercial lending options from our lender panel.
We can help you understand what information is required, which lenders may consider the application and how the proposed loan could be structured.
Loan availability, lending limits, LVRs, interest rates, fees and residency requirements vary between lenders and are subject to credit assessment.
This information is general in nature and does not take into account your objectives, financial situation or needs. Foreign investment, taxation and legal requirements should be confirmed with appropriately qualified advisers.
