Deposit and LVR for expat borrowers

By Gregg Odlum, Senior Finance Broker at Hypothèque · Updated 2026-11-05 · 6 min read

Plan for at least 20% of the price plus buying costs, and don't be shocked if a lender asks for more because you live overseas.

The short version

LVR, or loan-to-value ratio, is the loan divided by the property's value. A 20% deposit means an 80% LVR.
Borrow more than 80% of the value and you'll usually pay lenders mortgage insurance (LMI), which protects the lender, not you [1].
Many lenders cap expat loans lower than for residents; one illustrative example from Finder shows 60% for an expat versus 80% for a resident on the same property [2].
Location and property type can cut the maximum further, to 70% in some cases at Unloan, for instance [3].
Stamp duty, legal fees and inspections come on top of the deposit [4][5].

LVR in plain English

LVR is the number lenders care about most after your income. It's simple maths:

LVR = loan amount ÷ property value (as the lender values it) × 100

Note the brackets. The lender uses its own valuation, not the price you agreed to pay. If you pay A$950,000 for a Brisbane townhouse and the valuer says A$900,000, your LVR is worked out on A$900,000, and your deposit has to cover the gap.

Here's how the numbers look on a property valued at A$900,000. These are simple calculations to show the bands, not quotes from any lender.

LVR	Loan	Deposit from you	What usually happens
60%	A$540,000	A$360,000	Widest choice of lenders for expats, no LMI
70%	A$630,000	A$270,000	Common ceiling for some expat or specialist cases [3]
80%	A$720,000	A$180,000	Standard no-LMI line for residents [1]
90%	A$810,000	A$90,000	LMI usually payable; expat options thin out
95%	A$855,000	A$45,000	Mostly the territory of first home buyer schemes, which need you to live there [6]

Why expats get lower LVR caps

Lenders see more risk in an overseas borrower: income in another currency, harder verification, and less certainty about when you'll come home. They manage that risk by asking you to put in more of your own money.

Finder's illustration makes the point: for the same three-bedroom Melbourne home with the same lender, the maximum LVR shown was 60% for an expat and 80% for a citizen living in Australia [2]. That's an example, not a universal rule. Some lenders will go higher for Australian citizens with strong salaries in major currencies; others won't touch you above a much lower line.

Things that commonly push your maximum LVR down:

Income in a less common currency
Self-employed income [3]
Small apartments, units in big towers, or properties in certain postcodes [3]
Investment rather than owner-occupied purpose
A non-citizen partner on the loan

Unloan's own disclosure is a good example of how layered the rules get: it requires at least a 10% deposit or 10% equity, caps total lending above 80% LVR at A$2 million, and says it may only lend up to 70% depending on the property's location or type [3].

Lenders mortgage insurance basics

LMI is a one-off insurance premium charged when you borrow more than 80% of the property's value [1]. It covers the lender if you can't repay and the property sells for less than the debt. Moneysmart is blunt about it: LMI does not benefit the borrower, it only protects the lender [1].

For expats, LMI matters in two ways:

It may not be available. Some lenders won't offer LMI-backed loans to borrowers living overseas, so 80% becomes a hard ceiling. Policies vary, so ask before you plan around a 10% deposit.
It can be added to the loan. Where it's offered, the premium is often capitalised into the loan, which nudges your LVR up again.

What about the 5% Deposit Scheme?

Since 1 October 2025 the government's 5% Deposit Scheme lets eligible first home buyers and others buy with a smaller deposit and no LMI, with income caps removed [6]. The catch for expats: you must move in within six months of settlement and keep living there while the guarantee is active [6]. If you're coming home soon, it might fit. If you're staying overseas, it doesn't.

The costs on top of the deposit

Your deposit is not the only cash you need. Moneysmart suggests saving 20% of the purchase price plus enough for buying costs [5]. Those costs include:

Stamp duty (transfer duty). Set by each state and usually the biggest extra. It's often due within 30 days of settlement [5]. First home buyer concessions generally require you to live in the property.
Conveyancing and legal fees [4]
Building and pest reports [4]
Search fees and loan establishment fees [4]
LMI, if applicable [1]
Currency transfer costs when you move the money home

Foreign buyer surcharges

As an Australian citizen buying in your own name, you're generally not a foreign person for residential property [7], and NSW, for example, lists Australian citizens as an exception to its surcharge purchaser duty [8]. But if you buy with a partner who isn't a citizen or permanent resident, surcharges and foreign investment rules can apply to their share. Some couples structure the purchase differently because of this, which is a legal and tax question to settle before you sign [3].

How to build a deposit while living abroad

Pick your target LVR first. Ask a lender or broker what's realistic for your currency and job, then work backwards to a deposit figure.
Add buying costs. Use your state revenue office's duty calculator and add a few percent for fees.
Decide where to hold the savings. Some lenders like to see funds in an Australian account [3]. Moving money in planned chunks also smooths out exchange-rate luck.
Track the exchange rate, don't gamble on it. A 5% swing in the Aussie dollar can move a deposit by tens of thousands.
Look at equity you already have. If you own property in Australia, its equity can replace some or all of the cash deposit. See our guide on using equity to buy again.
Keep a cash buffer after settlement. Vacancies, repairs and rate rises don't wait for a good exchange rate.

Gifts and family help

Parents back home sometimes chip in. Lenders typically want a signed gift letter saying the money is non-repayable, plus evidence of the funds moving. Family guarantees, where a relative's property secures part of your loan, exist too, but lender appetite for using them with overseas borrowers varies. Treat both as conversations to have early, not surprises at settlement.

Deposit and LVR as an expat borrower: how much cash you really need