Overseas investors
Investing in Australian private mortgages from overseas
You don't need to live in Australia to lend against Australian real estate. Packs arrive by email, conversations happen by phone or Zoom, and your repayments land in your nominated account.
Yes, you can invest in Australian mortgages from overseas. Wholesale investors anywhere in the world can co-fund secured loans with HomeSec, choosing each loan from an emailed pack, being named on the registered mortgage over Australian real estate, and receiving principal and interest in Australian dollars. Everything is handled by email, phone and Zoom.
HomeSec Business Finance, an Australian private lender founded in 2004, funds most of its loans from its own balance sheet and invites wholesale investors to co-fund some of them alongside it. Whether you are an Australian living abroad or an international investor looking for secured income in a stable market, the process is the same. Only the practicalities of tax, currency and moving money differ.
Who invests in Australian mortgages from overseas?
Co-funding from overseas suits a few kinds of investor:
- Australians living abroad who want their savings working back home, in the currency they plan to return to.
- International private investors looking for secured income in a stable legal system.
- Overseas companies, trusts and family offices that want a direct, identifiable Australian asset rather than units in a fund.
- Retirees who split their year between Australia and somewhere else, and want income that follows them.
What they share is a preference for control and visibility at a distance. You can be in London, Singapore, Auckland or on a beach in Bali, read a pack over breakfast, say yes, and have your contribution secured by a registered Australian mortgage once the loan settles. Nothing about the process assumes you are in the room.
Why do overseas investors look at Australian secured lending?
For secured income in a market with a long record of stability. Loans are secured by registered first and second mortgages over Australian real estate, recorded on the state land title registers. Every loan is enforceable through the courts in every state, and HomeSec has specialist mortgage and property lawyers across Australia.
The returns are also strong by international standards. Co-funded loans earn 12% to 18% p.a. on the loans you choose, with the rate set loan by loan. As at September 2026, the big four Australian banks pay around 4.75% to 5.25% on 12-month term deposits, according to Canstar.
And the property behind the loans sits in a housing market with a long record of resilience. National falls in recent decades have been shallow, even as values soften in 2026. Our guide to the Australian property market sets out the data.
How does investing from overseas actually work?
The same way it works for someone in Melbourne. The process was designed to run remotely.
- Talk to our Funding Manager by phone, email or Zoom, at a time that suits your time zone. Our Funding Manager is available seven days on +61 3 9017 8277.
- Confirm your wholesale status and identity. More on both below.
- Receive a loan pack by email. Each loan has passed HomeSec’s 50-point due diligence checklist. An SMS tells you it has arrived.
- Decide yes or no, and how much. Read the pack wherever you are, ask questions, and reply. There is no obligation to take any loan.
- The loan is prepared in your name. The loan agreement is in your name or your entity’s name, and the borrower signs with their own solicitor present.
- Transfer at settlement. The mortgage is lodged naming you for your exact contribution, and you transfer your funds online at settlement.
- Receive repayments. Principal and interest are paid into your nominated account, not to HomeSec.
For the full picture, read how direct mortgage investing works.
How do funds move to and from Australia?
The simplest arrangement is an Australian bank account in your name or your entity’s name. The usual approach is to move funds into that account by international transfer ahead of settlement, transfer their contribution from it when the loan settles, and receive principal and interest back into it when the loan is repaid.
That keeps the timing clean. International transfers can take a few days and settlement dates are fixed, so having Australian dollars ready in Australia avoids any last-minute rush.
If you don’t have an Australian account, or you are unsure which structure suits you, we’ll talk you through the practical steps before your first loan. Nothing is committed until you have chosen a loan and are comfortable with how your money will move.
How is interest taxed for non-residents?
Interest paid to non-residents of Australia is generally subject to 10% interest withholding tax, or a lower rate where a tax treaty applies, according to the ATO. The tax is withheld from your interest before it is paid, and it is generally a final Australian tax on that income.
A few points worth knowing:
- Residency is a tax test, not a passport test. An Australian citizen living overseas can be a non-resident for tax purposes, and a foreign national living in Australia can be a resident.
- Your home country may tax the income too. Many countries give a credit for Australian tax withheld. Your adviser can confirm how that works for you.
- No GST. Interest earned is not subject to GST, because lending is an input-taxed financial supply.
What about currency risk?
Returns are in Australian dollars. The loan amount, the interest rate and the repayments are all fixed in AUD.
| If you… | What it means |
|---|---|
| Hold the Australian dollars | Your return is exactly the loan’s AUD rate, with no currency effect |
| Convert back to your home currency | Exchange rate moves between funding and repayment will add to or reduce your return in home-currency terms |
| Plan to spend or invest in Australia later | AUD income can build towards future Australian costs, such as property, education or retirement |
For Australians living abroad, AUD income is often exactly what they want: money that is already in the currency they plan to come home to. For others, AUD exposure can be a deliberate diversification. Either way, it is worth deciding upfront whether you plan to convert.
Do overseas investors need to qualify as wholesale investors?
Yes. Co-funding is open to wholesale and sophisticated investors, and the same Australian tests apply wherever you live. You can qualify with an accountant’s certificate, no more than two years old, showing net assets of at least $2.5 million or gross income of at least $250,000 in each of the last two financial years. Once you qualify, you choose how much to put into each loan, from $100,000 to several million dollars.
If your accountant is outside Australia, talk to us early about how the tests apply to you. Our guide for wholesale investors explains each test and which entities can co-fund.
What identity checks are needed?
Like any Australian lender accepting funds from investors, HomeSec verifies the identity of every co-funder before their first loan. If you invest through a company or trust, the entity and the people behind it are verified too.
Our Funding Manager will tell you exactly what is needed for your country and your structure. It is a one-off step, done before you see your first pack, so it is out of the way before a loan arrives that you want to fund.
What happens if a borrower doesn’t repay while I’m overseas?
HomeSec manages it, wherever you are. The loan is enforceable through the courts in every state. As mortgagee, the lenders can take possession of the property and sell it, and HomeSec’s specialist lawyers act across Australia. HomeSec meets the legal costs of recovery on defaulted loans.
Every loan is written at a maximum 80% LVR on residential property, lower on commercial, which leaves an equity buffer before capital is at risk. HomeSec’s own money is in the same loan as yours, and the full lending criteria are set out in our lending rules. You receive updates by SMS and email throughout.
Is there a New Zealand option?
A New Zealand site is on its way. New Zealand investors can already co-fund Australian loans in the same way as other overseas investors, subject to the same wholesale tests, identity checks and the withholding tax rate that applies under the Australia–New Zealand tax treaty.
Ready to look at a loan from wherever you are?
You can read a pack on your phone, in any time zone, and decide at your own pace. Register your interest and our Funding Manager will be in touch by email, phone or Zoom, whichever suits you.
Frequently asked questions
Can I invest in Australian mortgages from overseas?
Yes. Wholesale and sophisticated investors living outside Australia can co-fund secured loans with HomeSec, putting anywhere from $100,000 to several million dollars into each loan. You choose each loan from its emailed due diligence pack, are named on the registered mortgage for your exact contribution, and receive principal and interest in Australian dollars into your nominated account.
What tax do non-residents pay on Australian interest?
Interest paid to non-residents is generally subject to 10% Australian interest withholding tax, or a lower rate under a tax treaty. It is withheld from the interest and is generally a final Australian tax, so non-residents usually do not need to lodge an Australian return for that income. Your home country may also tax it.
Do I need an Australian bank account to co-fund?
It makes things simpler. The usual approach is to move funds by international transfer into an Australian bank account, then transfer their contribution at settlement and receive repayments into the same account. If you don't have one, our Funding Manager will talk you through the practical steps before your first loan.
What currency are returns paid in?
Returns are paid in Australian dollars. The interest rate and principal are fixed in AUD, so if you convert back to another currency, exchange rate movements will affect the final amount in your home currency, for better or worse. You can also hold the Australian dollars for future use in Australia rather than converting.
Can New Zealand investors co-fund Australian loans?
Yes. New Zealand investors can co-fund in the same way as other overseas investors, subject to the same wholesale tests and identity checks, and interest withholding tax at the treaty rate that applies. A New Zealand site is on its way, and in the meantime our Funding Manager can answer any questions.
Sources
- ATO — Withholding rate on interest paid to foreign residents
- ATO — GST and financial supplies
- Canstar — Big four bank term deposit rates
Figures are as at 26 September 2026 unless stated. This page is reviewed by Catriona Anderson, General Manager of HomeSec Business Finance, and updated as markets change.
