Chinese investors caught out as Australian banks cut off cash for property to foreigners
Chinese investors are finding difficulties in paying off their Australian property investments following moves by Australia’s largest banks including National Australia Bank, Commonwealth Bank and Westpac to limit lending opportunities to foreign investors. With 50,000 Chinese investors worried about financing, many are applying for loans from other Asian banks, particularly in Singapore, to supplement their finances. However most will not get approvals in time, according to Beijing-based property consultant David Wang.
Chinese investors are struggling to pay off their Australian property investments after the big banks scaled back lending to foreigners as part of a crackdown on fraudulent loan applications.

Australia's big four lenders - National Australia Bank, Commonwealth Bank, ANZ and Westpac – tightened lending rules for foreign investors about six months ago, property consultant David Wang told the ABC.

Westpac in April stopped lending to borrowers who lived outside Australia while the other banks announced they would apply stricter lending criteria for foreign customers.

Mr Wang, a Beijing-based expert, said about 50,000 Chinese investors are now worried about how they will finance their Australian home loans.

Chinese investors are clambering to hold onto their Australian property investments after a handful of fraudulent loan applications pushed banks to cut back on foreign lending (stock image)

'Say about 30 per cent of them are able to pay it all upfront, that leaves about 30,000 investors here who are affected — that's quite a large number,' he said.

Cai Yiyi bought an apartment at Burwood, in Sydney's inner west, earlier this year, with a $93,000 deposit.

'Seeing I'm not able to pay the remaining $530,000 up front, I could try to find another bank,' she told ABC.

'Otherwise, I could try to on-sell the contract to someone else to at least get the value of my deposit back, but I've heard this is difficult.'

Australia's big four banks – NAB, Commonwealth Bank, ANZ and Westpac – decided to reduce the amount they are lending to foreign investors about six months ago (stock image)

Mr Wang said many investors are trying to get loans from other Asian banks, especially in Singapore.

But he said many of them won't be approved in time.