Aussies Tax Foreigners Extra for Buying Homes

Homebuyers from China have been getting a clear message from Australian banks: Look elsewhere. Citigroup’s local bank will no longer approve mortgage applications in Australia that rely on foreign income denominated in Chinese yuan and four other Asian currencies, spokesman Matthew Coleman said in an e-mailed statement on May 10. Citi had been receiving more applications after a decision by Commonwealth Bank of Australia, National Australia Bank, and Australia & New Zealand Banking Group that restricted lending to nonlocals.

The banks are being pressured to help local homebuyers who feel crowded out by rising prices. Westpac Banking in April said it would stop lending to offshore customers who aren’t citizens or residents. Westpac wants to support Australians and permanent residents “on their journey to own a home or investment property,” the bank said in a statement.