Would you like to buy a property while living in Australia? If you meet the following qualifying criteria then you can get approved for a mortgage.
How much can you borrow?
The amount that you can borrow depends on the type of visa that you hold and the way that the lender you’re applying with views your visa status:
- 80% of the property value: Most temporary visa holders can apply for a mortgage if they are allowed to work in Australia for at least 12 months.
- 90% of the property value: Some visa holders may be eligible to borrow up to 90% of the property value if they have a strong income, stable employment and longer term visa.
- 95% of the property value: If you’re married to or defacto with an Australian citizen or permanent resident, regardless of your visa.
Did you know that the services of a mortgage broker in Australia are usually free?
Please call us on 1300 889 743 or complete our free assessment form to have an obligation free discussion with one of our mortgage brokers that specialises in lending to temporary residents living in Australia.
Which temporary residents will Australian banks lend to?
The Australian government and the FIRB doesn’t restrict particular visa types from borrowing money but the Australian banks and other lenders may not approve loans for some temporary residents (TR).
The list below includes visa types that Australian lenders tend to consider as “Australian citizens”. These visa holders may be entitled to borrow up to 95% of the property value:
- Interdependency Visa (subclass 310/110 and 826/814).
- Spouse / spousal / partner visa (subclass 309/100 and 820/801).
The list below includes visa types that Australian lenders tend to consider as “non-residents” and will restrict the loan to 80% to 90% of the property value. If you’re married to an Australian Citizen or PR then you can borrow 95% of the property value:
- Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457) and Temporary Skill Shortage (TSS) visa loans available to 90% of the property value as special exception to normal bank criteria. Conditions apply.
- Working Holiday Visa (Subclass 417).
- Business Owner (Provisional) Visa (Subclass 160).
- State or Territory Sponsored Business Owner (Provisional) Visa (Subclass 163).
- Senior Executive (Provisional) Visa (Subclass 161).
- State or Territory Sponsored Senior Executive (Provisional) Visa (Subclass 164).
- Investor (Provisional) Visa (Subclass 162).
- State or Territory Sponsored Investor (Provisional) Visa (Subclass 165).
- Skilled Regional (Provisional) visa (subclass 489).
- Business Visitors Visa (Subclass 456).
- Visiting Academics Visa (Subclass 419).
- Sport Visa (Subclass 421).
- Entertainment Visa (Subclass 420).
- Skilled Exchange Visa (Subclass 411).
- Film, Media, Actors and Support Staff, Photographers and Journalists Visa (Subclass 423).
- Emergency Visas (Subclasses 302 & 303).
- New Zealand Citizen’s Family Members Visa (Subclass 461).
- Religious Worker Visa (Subclass 428).
- Special Program Visa (Subclass 416).
- Medical Treatment Visa.
- Medical Practitioner Visa (Subclass 422, loans available to 90% of the property value).
- Sponsored Family Visitors Visa (Subclass 679).
- Special Category Visa (Subclass 444).
- Contributory Temporary Parent Visa (Subclass 173).
- Contributory Temporary Aged Parent Visa (Subclass 884).
- Student Visa (Subclass 572, 573, 574, 575 & 576).
- Temporary Graduate Visa (Subclass 485).
- Student Guardian Visa (Subclass 580).
- Holiday and Visiting Visas (Subclass 976).
- Short Validity Business ETA Visas (Subclass 977).
- Long Validity Business ETA Visas (Subclass 956).
- Bridging Visas (A, B, C, D & E).
If you’re a temporary resident, please call us on 1300 889 743 or fill in our free assessment form to find out how much you can borrow.
Are you a spouse visa / partner visa holder?
If you’re married to or in a relationship with an Australian citizen, New Zealand citizen or Australian permanent resident, the banks will see you as a lower risk than other visa holders.
As a result, some lenders will assess your mortgage application as if you were an Australian citizen. For more information, please see our spouse visa mortgage page.
Want to apply for a temporary resident mortgage? Please call us on 1300 889 743 or complete our free assessment form to discuss how we can help you to get approved!
Are you a student visa holder or an international student?
Most banks will allow student visa holders to borrow funds to purchase a property in Australia.
The Foreign Investment Review Board (FIRB) doesn’t restrict students from buying a home or investment property as long as they meet standard FIRB criteria.
However, your ability to get approval for a loan largely depends on whether or not you have a stable job and a solid income. If you’re working, most banks will lend you 80% of the property value.
If you’re not working, then your parents may be able to purchase the house for you. Please see our student visa mortgage page for more information.
To discuss your situation with one of our mortgage brokers who specialises in student visa loans, please call us on 1300 889 743 or complete our free assessment form today!
Is Australian Government approval required?
The Foreign Investment Review Board (FIRB) may need to approve your purchase. Please refer to our FIRB approval page for more information and specific guidelines.
Are first home benefits available?
Unfortunately, as a temporary resident you can’t apply for the first home owners grant and other government benefits.
If you’re on a spouse visa / partner visa and are buying with your spouse who’s either an Australian citizen or permanent resident then you can qualify for the First Home Owners Grant (FHOG).
You must buy the property together as ‘joint tenants’ not as ‘tenants in common’. Please refer to your conveyancer for more information.
Other Australian government benefits such as welfare and Medicare (public health cover) aren’t available to temporary residence visa holders.
Are you a temporary resident with a foreign income
It’s quite common for temporary residents of Australia to have either a business, investment property or pension that provides them with an income from outside of Australia. They often use this income to help them to pay their mortgage in Australia.
Not every lender will accept your foreign income in their assessment! Others will only accept your income if you’re an Australian resident for tax purposes and have declared your foreign income on your Australian tax returns.
However, some lenders have a simplified income verification process and can accept foreign tax returns, foreign pension statements or rental income receipts, as evidence of your income. They’ll usually use 80% of this income in their assessment to allow for exchange rate fluctuations.
Should I buy now or wait to become PR?
Under a government move to curb non-resident investing, the states of New South Wales, Queensland and Victoria now apply a surcharge to stamp duty for temporary residents.
The surcharge varies anywhere between 3% to 8% of the land value depending on the state.
How can you avoid the stamp duty surcharge?
Firstly, you may want to buy in one of the other four Australian states because they currently don’t apply a stamp duty surcharge to temporary residents including 457 visa holders.
Secondly, if you’re close to getting your permanent residency anyway, you may want to wait so you can avoid the surcharge, bearing in mind that some states require to have been in the country for at least 200 days after getting your PR at the time of signing the contract.
Finally, if you buy in the name of an Australian citizen under a spousal visa arrangement, you won’t pay extra stamp duty.
The stamp duty surcharge can add tens of thousands of dollars to your purchase price so check out the foreign citizen stamp duty page for more information and updates.
Apply for a temporary resident mortgage today!
We’re mortgage brokers who specialise in helping people without Australian citizenship apply for loans in Australia.
If you’d like to buy a property in Australia or would like to know more about how we can help then please call us on 1300 889 743 or complete our free assessment form today.