REALWorld Law

Real estate finance

Restrictions on foreign lenders

Are there restrictions on granting security over real estate to foreign lenders, and, if so what are they?



There are no restrictions on granting security to foreign lenders. The Foreign Acquisition & Takeovers Act 1975 (Cth) (FATA) treats a mortgagee's interest in Australian land as being an interest the acquisition of which may require approval from the Foreign Investment Review Board.  However, approval is not required where the mortgage is granted in the ordinary course of a money-lending business and is provided as security for a money-lending agreement entered into in the course of such business.