A new lender has announced that they will be lending up to 90% of the property value to qualified migrant home loan applicants!
This is fantastic news for migrants headed to Australia! Migrants can now have their mortgage approved and be ready to buy a home before they even set foot in the country!
As more lenders are making migrant home loans available to mortgage brokers, it is getting easier for non-residents to borrow to finance their homes in Australia.
The lenders go through mortgage brokers who specialise in non-resident home loans, like us!
While it is true that more lenders will consider home loans for non-residents, you should be aware that there are many lenders that still do not lend to those who have non-resident status in Australia.
Mortgage brokers like us, who specialise in non-resident loans, have access to great home loan packages from the lenders but these home loans are often not advertised to the public.
Migrants can also anticipate better deals on their mortgages to purchase their Australian homes as more lenders are offering migrant home loans.
However, please be aware that a majority of lenders will still not be providing mortgage options to temporary residents for the purchase of their home.
Please refer to our section on 457 temporary visa home loans to see how much you are eligible to borrow.
What are the conditions for non-resident home loans?
The list of special conditions for the migrant lending package are as follows:
- The applicant’s visa type must be listed as an Approved Migrant visa type.
- A copy of the Migrant’s passport and visa must be provided, and the visa number detailed in the application notes.
- Applications will be accepted only from Brokers accredited under this Migrant Policy (such as our company).
- All applications are to be referred to the specialist non-resident department for review.
- Applications that require Foreign Income for paying off the loan are to be limited to 80% LVR and are not considered as Migrant Applications.
- Applications for purchasing an Investment Property or holders of a temporary visa must have a minimum of 12 months remaining on their Australian visa.
- Normal credit underwriting standards, including proof of income and verification rules apply.
- All loans are to be on a Principal and Interest or Interest Only basis (no Line of Credit loans).
- Security is to be registered first party mortgage over the property being purchased.
- A valuation report is required in all cases.
- Formal approval is not permitted until applicants arrive in Australia and a copy of the entry stamp in the passport is provided.
- Applications can be approved conditionally before the applicant’s arrival.
- Low doc loans are restricted to Business and Investor Visa types (132, 160, 162, 163, 165) to a maximum LVR of 60%.
- Max LVR is 90% including mortgage insurance premium capitalisation.
Which visa types are eligible for home loans in Australia?
The approved migrant visa types are:
100 (partner), 103 (parent), 115 (remaining relative), 116 (career), 119 (regional sponsored), 120 (employer nomination), 124 (distinguished talent), 132 (business talent), 143 (contributory parent), 155 (resident return), 157 (former resident), 159 (former resident), 160 (business owner), 161 (senior executive), 162 (investor), 163 (sponsored business owner), 164 (sponsored business executive), 165 (sponsored investor), 175 (skilled independent), 176 (skilled sponsored), 200 (refugee), 201 (humanitarian), 203 e,ergency rescue, 204 (refugee), 300 (prospective marriage), 302 (emergency temporary), 309 (partner), 310 (independent), 405 (investor retirement), 411 (exchange), 415 (foreign government agency), 416 (special program), 422 (medical practitioner), 423 (media and film staff), 428 (religious sponsor), 457 (business sponsor), 461 (NZ family relationship), 475 (regional sponsored), 476 (recognised graduate) and 487 (regional sponsored)
Which credit documents are needed for non-resident home loans?
To confirm the applicant’s past credit history is acceptable, the following are to be reviewed:
- The last three months’ statements on any current liabilities, including home loans, personal loans and credit cards.
- The last six months’ loan statement for liabilities repaid in the last six months.
Our mortgage brokers are experts in non-resident home loans and know lenders that can offer you the best loan given your situation. Call us on 1300 889 743 or enquire online today so you can truly make yourself at home in Australia.