Home Loans for Overseas Investors in South East Melbourne, The Foreign Buyer's Guide

If you're based overseas and looking at South East Melbourne property, the rules have changed significantly in the past two years. The established-home ban introduced in 2025 means foreign persons can no longer purchase an existing residential dwelling during the ban period, and lenders assess foreign-sourced income differently from Australian wages. Understanding both sets of rules before you apply saves time, money and a credit file inquiry on the wrong loan.

What remains open is meaningful. New dwellings and vacant residential land are still available to foreign purchasers with Foreign Investment Review Board approval, and South East Melbourne's development pipeline includes apartments and townhouses across the inner south and bayside corridor. For temporary residents and non-residents earning in foreign currency, the lending landscape is more specialised than standard, but the options are real.

EverLend works with overseas investors and expats across South East Melbourne, comparing across 60+ lenders to find the ones that genuinely accept foreign-sourced income and understand FIRB-approved purchases.

Can overseas investors still buy property in South East Melbourne?

Yes, but only new dwellings and vacant residential land. The federal government banned foreign persons from purchasing established dwellings from 1 April 2025, and that ban runs until 30 June 2029. Permanent residents are not affected by this ban. If you hold temporary residency or are a non-resident purchasing from offshore, new builds and off-the-plan apartments are your available residential pathway, and they require FIRB approval before you can proceed.

How do lenders assess overseas investor income and applications?

Foreign-sourced income is assessed differently from Australian wages, and that single factor narrows the lender panel considerably. Most lenders apply a shading factor to income earned in a foreign currency, reducing the amount counted for serviceability purposes. The typical approach treats converted income at 60% to 80% of its Australian-dollar equivalent, depending on the currency and the lender's own policy. A small number of specialist lenders assess strong foreign currencies at closer to full value, which changes the borrowing number significantly.

Employment type matters too. A salaried employee of an overseas firm is assessed more straightforwardly than a self-employed borrower or a business owner whose income flows through a foreign trust or company structure. In both cases, lenders will want to see translated and certified financial documents, typically two years of income evidence, and bank statements showing funds available for the deposit and settlement costs.

Permanent residents living overseas or in Australia are treated by most lenders as standard domestic borrowers, which is the most important distinction in this space. If you hold permanent residency, the foreign-income shading and the established-home ban both fall away.

What FIRB approval do overseas investors need?

Every residential land purchase by a foreign person requires FIRB approval, regardless of price. There is no monetary threshold below which approval is not required. Applications are lodged through the Australian Taxation Office's foreign investment portal, and approval is valid for 12 months from the date of issue. A binding contract entered before your approval lapses is protected, so timing your contract to follow your approval matters.

Key conditions to understand:

• › Application fee: a tiered fee applies, indexed annually on 1 July. Direct to the ATO for the current schedule, as any figure here will date quickly.
• › Vacancy fee: if the property is unoccupied and not available to rent for more than 183 days in a vacancy year, a fee applies, set at twice the original application fee for vacancy years from April 2024.
• › CGT on sale: foreign residents are not entitled to the 50% capital gains tax discount and are generally denied the main residence exemption. Confirm your position with an accountant before you purchase.
• › Foreign purchaser additional duty: in Victoria, an 8% surcharge applies on top of standard transfer duty for foreign purchasers on residential property.

Source: Australian Taxation Office and State Revenue Office Victoria.

How much can overseas investors borrow in South East Melbourne?

Borrowing capacity depends on the lender's foreign-income policy, the currency your income is earned in, and the LVR you're applying at. Specialist lenders typically lend to foreign non-residents at a maximum LVR of 70% to 80%, meaning a deposit of at least 20% to 30% is generally required. That is higher than the standard owner-occupier deposit, and it reflects the additional risk lenders attach to income assessed offshore.

South East Melbourne sits entirely within the Greater Melbourne capital-city band, and every approved postcode here falls under the $950,000 price cap that applies to federal home ownership schemes. That cap is more relevant to first home buyers than to overseas investors, but it confirms the government's classification of this area: capital city, not regional. For new apartments and off-the-plan townhouses, which are where the realistic overseas investor purchase sits, CoreLogic data shows unit medians ranging from $470,000 in Ripponlea to $1,247,500 in Brighton, with most inner suburbs landing between $500,000 and $750,000.

The Victorian foreign purchaser additional duty of 8% adds materially to purchase costs. On a $700,000 apartment, that is $56,000 on top of standard transfer duty, before any first home buyer concession applies. Budget accordingly, and confirm the exact duty figure using the State Revenue Office Victoria's calculator rather than estimating.

Source: CoreLogic (via YIP, June 2026) and State Revenue Office Victoria.

Get in touch Need help with a home loan as an overseas investor? We're a local team who understand how lenders actually assess your situation, not just your rate. We'll compare your options across 60+ lenders to find the right fit. Chat to Our Team Call 03 7036 3356

When does overseas investment in South East Melbourne not make sense?

If your goal is an established house in a suburb like Elsternwick, Bentleigh or Cheltenham, the current rules simply don't allow it. The established-home ban covers all residential property that has been previously sold or occupied, and no FIRB application can override it during the 1 April 2025 to 30 June 2029 period. Trying to work around it wastes time and risks the deposit paid in good faith.

The combination of a larger deposit requirement, foreign income shading, the 8% foreign purchaser duty surcharge, no CGT discount on exit, and the vacancy fee creates a materially higher cost structure than a domestic investor faces. For some buyers the numbers still work, particularly where the Australian dollar is weak against their home currency and where the property is a new high-quality apartment they intend to hold long-term. For others, the stacked costs outweigh the return. Running the numbers honestly before you commit is worth the conversation.

What approval challenges do overseas investors face?

The hurdles worth knowing before you apply:

• › Narrow lender panel: most major Australian banks do not lend to non-resident foreign nationals. Specialist and second-tier lenders make up most of the accessible panel, which makes the choice of broker more consequential than it is for a standard application.
• › Document translation and certification: payslips, tax returns and bank statements in a foreign language must be translated by a certified NAATI translator and verified before a lender will assess them. Gathering these takes longer than most buyers expect, so starting early avoids rushed settlement timelines.
• › Valuation risk on off-the-plan: the lender values the property at completion, not at the contract date. If the market moves between exchange and settlement, the valuation may come in below the contract price and the buyer covers the shortfall in cash, with no Australian equity to draw on.
• › Finance timing on new builds: formal approval lapses before a build completes, so pre-approval cannot be locked in for the entire construction period. Policy changes over an 18-month build can shift what a lender will offer at completion.
• › Currency fluctuation: if your income or deposit is held offshore, exchange-rate movement between contract and settlement can change both your serviceability and the amount that lands in the Australian account. Lenders assess income at a conservative conversion rate, not at the spot rate on application day.

How do mortgage brokers help overseas investors get approved in South East Melbourne?

The lender choice decides the outcome here more than it does for almost any other buyer type. Three policy differences matter specifically for overseas investors, and they're not published side by side anywhere.

• › Income shading rate: some lenders apply a 60% conversion factor to foreign income, others apply 80%. On a $120,000 overseas salary that difference moves the assessed income from $72,000 to $96,000, which changes the borrowing capacity significantly.
• › Currency acceptance: not every lender accepts every currency. Some accept a short list of major currencies only; others assess a broader range. Knowing which lenders accept your currency before applying avoids a declined application sitting on your Australian credit file.
• › Minimum LVR floor: some specialist lenders cap foreign-national lending at 70% LVR, others lend to 80%. That 10-point difference on a $700,000 purchase is $70,000 more in deposit needed. Whether it's available to you depends on which lenders your broker has access to and on your specific circumstances, which is worth a conversation before you apply.

Frequently Asked Questions

Your Next Steps

Buying as an overseas investor in South East Melbourne is workable, but the rules are specific and the lender landscape is narrow. Getting the FIRB process, the income assessment and the lender selection right before you exchange protects both your deposit and your credit file.

Ready to find out which lenders will work best for your overseas investor application? Contact the EverLend team or call 03 7036 3356. We'll canvas our 60+ lender panel and find the most suitable options for your circumstances.

About the author Evelyn Clark Director, Mortgage & Finance Broker Evelyn Clark is the Director and a Mortgage & Finance Broker at EverLend, the St Kilda brokerage she founded. She believes educating clients leads to better financial outcomes, which is why EverLend runs the You Have My Interest podcast, webinars and workshops. She helps first home buyers, upsizers and investors across South East Melbourne compare options across a panel of 60+ lenders. Meet Evelyn →

EverLend · South East Melbourne · Ever Lend Pty Ltd (ACN 625 080 515), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.