Major banks stop lending money to foreigners

Three of Australia’s big four’ banks have tightened their mortgage rules, and have ceased lending money to offshore customers who are not citizens or permanent residents of Australia.
The changes come on the back of rising concerns that fraud and money laundering are increasing among foreign buyers in the Australian property market, according an ABC report.
A raft of new rules were introduced last year, including visa checks, heavy fines, and forced sales to deter illegal foreign investment in the Australian housing market. Xu Jiayin, one of China’s richest men, was ordered to sell his $39 million Point Piper mansion within 90 days because it was purchased without approval of the Foreign Investment Review Board. The Treasury announced that several properties were being investigated for potential non-compliance with FIRB rules.
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