NAB blocks foreign property buyers without local income

The National Australia Bank has joined the three other big Australian banks in restricting its lending to foreign property buyers without any domestic income. 

The bank had previously reduced the amount of "foreign source" income that it will include in loan assessments, to 60 percent, from 80 percent.

Westpac, the Commonwealth Bank and ANZ previously changed their rules over the last two months. 

NAB told The Australian Financial Review it would only consider foreign home loan applications to applicants who have existing Australian income. 

“NAB continually reviews its policies to ensure we continue to lend responsibly, and respond to changing market conditions and regulatory requirements,” a spokeswoman said. 

"NAB has limited appetite for this segment, which comprises only a small percentage of NAB’s lending book.”

“Under these changes, applicants will need to provide evidence of existing Australian income in order to be eligible for home lending application purposes.”