The Ultimate Guide for Taiwanese Buying Property in Australia: Eligibility, Mortgage Process & Interest Rates

As an increasing number of Taiwanese investors consider overseas property, buying real estate in Australia has become an appealing option—for investment, skilled migration, or planning for children’s education. However, compared to buying property in Taiwan, purchasing real estate in Australia requires navigating a more complex legal and financial landscape. This guide—focused specifically on Taiwanese buyers in Australia—explains eligibility requirements, the FIRB application process, mortgage interest rates and lender choices, loan‑to‑value ratios (LVR), and frequently asked questions to equip you with comprehensive knowledge and preparation.

1. Can Taiwanese Nationals Buy Property in Australia? Eligibility & Restrictions for Foreign Buyers

Taiwanese who are not Australian citizens or permanent residents fall under the category of foreign non‑resident buyers, subject to specific regulations:

• Purchase of brand‑new dwellings (New Dwelling)

• Purchase of off‑the‑plan properties (pre‑construction)

• Purchase of vacant land, provided there is a binding commitment to develop

These restrictions exist to protect housing opportunities for local residents and guard against speculative activity from overseas buyers.

FIRB Approval Is Mandatory

All foreign buyers—including Taiwanese citizens—must obtain approval from the Foreign Investment Review Board (FIRB) before completing a real estate transaction. Application fees depend on the property value (e.g. approx. AUD 6,350 for property under AUD 1 million, or up to AUD 13,200+ for property around AUD 2 million). The processing time is generally 30 to 60 days, and it is strongly recommended to apply prior to signing any binding contract.

2. Property Purchase Process and Mortgage Steps in Australia

Understanding the full process—from financial assessment to settlement—helps avoid delays and financial pitfalls.

Step 1: Financial Assessment & Mortgage Pre‑Approval

Before shopping for property, assess your income, savings, debts, and prepare:

• Passport

• Last two years’ income proof (pay slips or tax returns)

• Bank statements covering the past six months

• Comprehensive asset and liability listings

• English translations of any Taiwanese documents

To improve success odds, engage a licensed mortgage broker familiar with foreign borrower requirements. They can assist in applying for pre-approval, typically valid for 3–6 months, giving you clarity on your price range and credibility with sellers or developers.

Step 2: Property Search & Expression of Interest (EOI)

Once pre‑approved, search platforms like Realestate.com.au or Domain to find suitable listings. When you find a property you like, submit an Expression of Interest (EOI) and provide a refundable deposit—usually between 1% and 5% of the property price.

Step 3: FIRB Application

This step is essential. Many Taiwanese buyers underestimate the time required. If you sign a contract before FIRB approval, your contract could become void or subject to penalties.

Step 4: Formal Mortgage Application

After FIRB approval and contract signing, submit your full mortgage application. Depending on the bank and application completeness, approval may take 1 week to several weeks. Banks often require higher down payments from overseas buyers.

Step 5: Settlement & Handover

Once the loan is approved, move to settlement. It is advised to work with an Australian lawyer or conveyancer to handle title transfer, stamp duty and conditional surcharge payments, and final disbursement. After settlement completion, you will receive the property keys.

3. Interest Rates & LVR in Australia (2025 Update)

Interest Rates

Mortgage interest rates vary by residency status:

• Foreign buyers without a visa: approximately 7.24%+

• Temporary visa holders (e.g., skilled, investor, student visas): approximately 5.63%–6.19%

• Australian residents or citizens: around 5.95% fixed, with variable rates depending on bank and economic conditions

Loan-to-Value Ratio (LVR)

• Foreign buyers with non‑AUD income typically qualify for 70%–80% LVR, but in cases of currency risk or unclear income sources, LVR may drop to 60% or lower.

• Local residents often receive up to 80%–95% LVR.

Repayment Options

• Principal & Interest (P&I): Common for owner-occupiers; regular payments reduce principal over time.

• Interest Only (IO): Popular for investment property buyers. Payments cover interest only (not principal) for an initial fixed period (e.g. 5 years), allowing for potential tax deductions and maintaining principal repayment flexibility.

4. Major Banks & Lending Options in Australia

5. Required Documents for Mortgage Application

Prepare the following ones in advance:

• Passport or valid ID

• Income proof and tax documents (translated to English)

• Six months of bank statements

• Detailed asset/liability statement

• FIRB approval certificate

• Credit report (Australian if available; if not, domestic equivalent from Taiwan)

• Additional documentation like purchase contract and insurance may be required.

Providing a complete and accurate document set greatly reduces approval delays.

6. Common Questions & Practical Considerations

• Stamp Duty and Foreign Surcharge: Foreign buyers must pay both state stamp duty and an additional surcharge (typically 7%–8% depending on NSW, VIC, QLD, etc.)

• Legal and Settlement Fees: Allow AUD 700 – AUD 2,500, depending on transaction complexity and lawyer fees

• Property Management: For absentee landlords, property managers typically charge 5%–10% of monthly rent

• Tax Planning: Rental interest payments and depreciation may be tax-deductible—consult with a qualified accountant

• Policy and Exchange Rate Risk: Keep informed of FIRB regulations, LVR limits, and foreign exchange exposure—consider hedging strategies if paying in foreign currency

7. Conclusion: Key Recommendations for Taiwanese Investors Buying Property in Australia

Overall, Australia’s real estate market offers a strong legal framework, transparent regulations, and secure property rights—making it an attractive destination for Taiwanese individuals planning long-term asset allocation. Whether the goal is owner-occupation, rental investment, or planning for children’s education, purchasing property in Australia is a viable and strategic option.

That said, foreign buyers—including Taiwanese—must navigate several important steps, such as obtaining FIRB approval, paying additional foreign buyer surcharges, and dealing with mortgage eligibility restrictions. With early preparation, a thorough understanding of local regulations, and support from experienced professionals, these challenges can be effectively managed to reduce risk and increase the chances of a successful purchase.

Taiwanese buyers interested in investing in Australia are strongly encouraged to develop a comprehensive plan—from financial assessment and mortgage pre-approval, to property selection, tax compliance, and long-term asset management. During the mortgage application and property transaction stages in particular, working with qualified mortgage brokers, conveyancers, and tax accountants can streamline the process and minimize uncertainty.

Finally, it’s important to stay up to date with changes to Australian policies affecting foreign investors. These may impact lending criteria, tax obligations, or eligibility rules, all of which should inform your funding strategy and risk management approach.

If you're currently evaluating the opportunity to invest in Australian property, this guide serves as a helpful starting point. Combined with a clear understanding of your personal financial situation and long-term goals, a well-researched and carefully executed plan can help you unlock the full potential of the Australian property market. While the path may involve challenges, for well-prepared and strategic Taiwanese buyers, it is a market full of opportunity.