Student visa mortgage
Can I get a mortgage on a student visa?
Are you an international student who is currently studying and living in Australia?
You may be eligible to get approval for a home loan. Read on to find out how some of the major Australian banks view student visa mortgage applications and how your parents can help you with the purchase!
What are the lending criteria?
To apply for a mortgage you must have:
- A good credit history.
- Stable employment.
- An ability to repay the loan and pay for your living expenses.
Generally most banks will lend to you, as long as you can prove that you can afford to repay the loan using your income in Australia.
This means that you will need to provide payslips, tax returns or a letter from your employer, depending on the lender that we help you to apply with.
How your parents can help!
If you are not working there may be greater difficulty involved in getting approval. However it may be possible for you to get your parents to buy an investment property in Australia, in their names and rent it out to you.
This is by far the most common way that we help students buy a house! Please see our
foreign investor lending criteria for more information.
This type of purchase will be subject to Foreign Investment Review Board (FIRB) approval and your parents will be required to buy a property in a new development, not an existing house or unit.
It isn’t possible for you to apply for a home loan with your parents as a guarantor.
To speak to someone who has in depth knowledge of these loan products please call us on 1300 889 743 or enquire online.
How much can I borrow on a student visa?
Despite being on a student visa, our lenders will allow international students to borrow up to 80% of the value of the purchase price, provided they meet the lending criteria. Discounted home loans are available from some lenders.
Want to find out your borrowing capacity? Discuss your situation with our mortgage brokers and they can quickly work out how much you will be entitled to borrow.
Simply enquire online or call us on 1300 889 743 to find out how we can help you get approved.
Will I need a deposit?
Yes, most banks require you to provide a 20% deposit. You will need another 5% of the purchase price to cover purchasing costs such as stamp duty and conveyancing fees.
If your parents choose to gift you some money to put towards the purchase price, then this will be accepted by most major banks.
The funds must be deposited into your account before the application can be processed.
How do the lenders view student visas?
We commonly receive enquiries from international students on a temporary visa who wish to buy property in Australia.
The difficulty is that most banks have very strict lending criteria for student visa mortgages, or may impose a higher interest rate upon approval.
It also depends on whether or not you are working, as your employment status can affect your ability to get approval.
Will the banks accept my scholarship income?
Are you currently receiving funds through a scholarship? Unfortunately, most banks will not accept this as part of your income when assessing your ability to repay the debt.
However, if your partner is an Australian permanent resident or citizen who is working and you are applying for a loan together, the banks will take your partner’s income into account and you may be eligible to borrow up to 95%!
See our temporary resident mortgage page for more information.
Call us today on 1300 889 743 or enquire online and we can help find you the right lender who will accept your situation as an international student.
On a student visa? We can help you get approval!
Australian banks have very complex lending criteria that is frequently changing. Because of this, many international students can become easily confused and often select home loan products that are unsuitable for their situation.
Others simply apply with the wrong lender and get declined, affecting their credit file!
Avoid these difficulties by speaking to mortgage brokers who are experts in student visa loans. Call us on 1300 889 743 or enquire online today!
Will I get a good interest rate?
Where you have good credit and can demonstrate your ability to repay the debt, most banks will offer standard interest rates.
However, we know of lenders that offer the most competitive rates around and will approve your loan, regardless of your student visa.
Speak to us today on 1300 889 743 or enquire online to find out how we can help you.
Will I need FIRB approval?
You will need Foreign Investment Review Board (FIRB) approval, unless you are buying the property with a permanent resident or Australian citizen.
The Foreign Investment Review Board (FIRB) is generally concerned with the type of property being purchased.
The FIRB has a more flexible policy for those who are purchasing an owner occupied dwelling. Approval is not overly complicated and is usually granted within two weeks.
For more information please see our FIRB approval page.
What visas are accepted?
The Student visa types that we can assist with are:
- Student Visa (Subclass 572 – Vocational Education & Training)
- Student Visa (Subclass 573 – Higher Education)
- Student Visa (Subclass 574 – Postgraduate Research)
- Student Visa (Subclass 575 – Non-Award)
- Student Visa (Subclass 576 – AusAID / Defence)
In addition to the above temporary residence visas, we can also assist with other student related visas. Graduates who are looking to obtain permanent residency in the future, may be eligible to borrow up to 80% of the property value:
- Skilled Regional Sponsored Visa (Subclass 487)
- Skilled Graduate Visa (Subclass 485)
- Skilled Recognised Graduate Visa (Subclass 476)
If you are unsure as to whether your visa type will be accepted by the banks, contact us on 1300 889 743 or enquire online.
Get fast approval!
Bank policy is constantly changing! By speaking to an expert in student visa mortgages you can get the most accurate and up-to date information available.
Our mortgage brokers can choose from over 40 major banks and specialist lenders. This means we will shop around to find the right lender for you.
Call us now for an obligation free consultation on 1300 889 743 or enquire online and one of our mortgage brokers will contact you to discuss the options available to you.
