What You Need Before Buying a House in Sydney: A Finance-Ready Checklist for Expats

Why So Many Expats Want to Buy a Home in Sydney

According to the ABS, 182,773 people moved to New South Wales from overseas in 2025. Many of these expats moved to Sydney for various reasons.

Some relocated for work, while others do it for love. Plenty do it for a lifestyle change that embraces better weather, an improved work/life balance, and the opportunity to enjoy beaches, national parks, and the city’s excellent café culture.

Many of those who settle in Australia permanently want to put down roots, and owning property can be a great way to do so. A home here gives you stability and a sense of belonging. It also gives you the potential for steady long-term equity growth, especially in suburbs like the Northern Beaches, Inner West, and Eastern Suburbs.

What You Must Know About the Sydney Property Market

The Sydney property market is characterised by high prices and tight supply. It has also been affected by recent price growth driven by interest rate cuts and population growth. In addition, the market is so competitive that properties often sell in just a few weeks — sometimes even days. To get a feel for the city itself, here are some things to do in Sydney.

Additionally, if you do want to buy a property, most banks and lenders require a 20% deposit of the purchase price. Some lenders do allow less, although this depends on your financial situation, and usually requires you to take out mortgage insurance. Prices also change from suburb to suburb, so you may note a wide range during your search.

Add to this the fact that many local buyers have deep pockets and a firm understanding of the property market. Overall, this means expats will need to be financially ready to stay competitive.

Essential Finance Requirements for Expats Buying in Australia

Most expats apply for home loans through lenders that assess overseas income, foreign tax documents, and local Australian requirements. Many turn to brokers like https://www.afmsgroup.com.au to understand these lending rules and compare the different options.

Typically, lenders will ask for proof of employment, bank statements, tax history, payslips, and details about your residency status. Doing this provides them with all the information they need to determine how much you can borrow.

Australian lender criteria for expats include checking your currency type and income stability. Additionally, lenders will look at how long you’ve been in your job, while if you are self-employed, you may be asked for company financials. Such checks help lenders confirm that your income will cover repayments over time. It is wise to prepare as much as possible in advance so the approval process runs smoothly.

FIRB Approval and Legal Obligations for Overseas Buyers

If you are not an Australian citizen or permanent resident, you may need FIRB (Foreign Investor Review Board) approval before buying a home. Thankfully, the process is relatively straightforward, and many people lodge the application before making an offer.

FIRB approval for overseas buyers helps Australia track foreign investment in the housing market. It is worth noting that foreign buyer rules in NSW also include stamp duty (aka transfer duty) and an additional surcharge for some buyers. It’s important to check the current rates, as they can change. Similarly, you should also plan for other costs such as legal fees, inspections, and mortgage setup fees.

Your Finance-Ready Checklist Before Applying for a Sydney Home Loan

As of November 2025, the median value of a dwelling in Sydney is a whopping $1,269,659. Therefore, it is wise to get your finances in order early to give yourself the best chance of purchasing a property in such a competitive market. This checklist highlights the key steps every expat should follow before applying for a home loan.

1. Confirm Your Borrowing Power as an Expat

Your overall borrowing power will depend on your income, savings, credit history, and residency status. Many lenders use any overseas income you get. But they will most likely convert it at a set rate. This helps them understand your ability to make repayments under Australian rules.

2. Gather Your Required Mortgage Documents

When applying for a mortgage, expats will need a wide range of supporting documentation. This includes bank statements, payslips, tax records, ID, residency documents, and employment contracts. Some borrowers may need to provide additional paperwork depending on their country of origin or work arrangement.

3. Prepare Your Deposit

Typically, you will need a 20% deposit when buying a property in Sydney. This means that if you want to purchase a property worth $1 million. You must put down a $200,000 deposit.

That said, some lenders will accept less, though this usually requires you to pay the lender's mortgage insurance.

4. Understand All Upfront Buying Costs in NSW

When buying a home in New South Wales, expats will face several upfront costs. They include stamp duty, mortgage registration, pest inspections, legal reviews, and loan establishment fees. Their amounts will depend on the price of the property, its location (they are generally more expensive near Sydney’s best beaches), and your residency status. For expats, especially those relocating from the USA or Europe, these costs can be confusing. So, it is worth taking the time to really familiarise yourself with them.

5. Convert Overseas Income for Loan Assessment

Lenders typically convert income into Australian dollars using set methods. This is common for expat home loan requirements Down Under and helps banks judge whether you can afford to purchase a home.