Making your Australian mortgage repayments from another country is usually straightforward, and the bank you set up your mortgage with will most likely also set up an Australian bank account for you at the same time. You can then arrange for your loan payments to debit from that account. Many expats maintain an Australian bank account into which they periodically transfer money from their overseas income. You can use international money transfer services to send funds to Australia in your loan’s currency (which will be AUD). In fact, most lenders will require loan repayments in Australian dollars, so having a local account is very necessary
To manage FX (foreign exchange) risk, it’s wise to plan ahead. Since your income is in a foreign currency and your loan is in AUD, exchange rate fluctuations can affect how expensive your repayments feel. For example, if the Australian dollar strengthens against the currency you earn, you’d have to convert more of your local currency to meet the same AUD repayment. Strategies to manage this include:
- Scheduling Regular Transfers: Some expats send money monthly or quarterly to their Australian account whenexchange rates are favorable, rather than last minute, to build a buffer
- Forward Exchange Contracts or Hedging: If you want certainty, you can use a foreign exchange provider to lockin an exchange rate for future transfers (for instance, you can secure today’srate for the next 6 months of transfers). This hedging can protect you from adverse currency movements.
- Using FX services with good rates: Don’t just rely on your local bank for international transfers – they often have poor rates. Consider using specialized FX transfer companies (like OFX, Wise, and others) which often give much better exchange rates and lowerfees. AEXPHL has partnerships that offer preferential exchange rates for ourclients, which can reduce the cost of moving money internationally.
Operationally, once your Australian account has funds, you can set up a direct debit orautomatic payment for your mortgage, just as if you were living in Australia. Many Australian lenders also allow you to make extra repayments online, so you can log in from overseas and manage your loan (check balances, redraw, etc.) via internet banking.
In summary, repaying your home loan from overseas is not difficult – it mostly involves abit of currency planning. We’ll provide guidance on setting up the right bank accounts and can connect you with reputable FX services. With the right approach, you can minimize fees and ensure your mortgage is paid on time with minimal effort, despite being miles away.
