Getting a mortgage with a temporary resident

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Abby
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Joined: Mon May 20, 2019 5:09 pm

Getting a mortgage with a temporary resident

Postby Abby » Mon May 20, 2019 5:10 pm

Hi there, I’m a permanent resident in a de facto relationship with my partner who is here on a 482 Visa. We’re getting married in the fall and will be applying for a Partner Visa then. It could be a while before he actually receives his PR, so we’re hoping to purchase a house sooner rather than later. What are some challenges in getting a mortgage with a temporary resident?

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Otto Dargan
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Re: Getting a mortgage with a temporary resident

Postby Otto Dargan » Mon May 20, 2019 5:44 pm

Hello Abby. Welcome to the forums.

A temporary resident in a de facto relationship with an Australian permanent resident or citizen can borrow up to 95% of the property value, regardless of your visa status.

When buying with a temporary resident as a permanent resident you would have to consider FIRB approval and foreigner stamp duty surcharge.
  • You can avoid the surcharge as well as FIRB approval by having both you and your partner on the mortgage but only the Australian PR holder on the property title. This means for all intents and purposes, the property is solely owned by an Australian who is exempt from both.
  • This way both of your incomes can be used when assessing your borrowing power allowing you to borrow the amount you need.
  • You may even qualify for the first home owners grant and stamp duty concessions this way.

Keep in mind that lenders prefer that the main income earner be an Australian permanent resident or citizen. They will look at your ties to Australia, your relationship, and if you have children or relatives here, as having stronger ties to Australia is considered lower risk. That is to say, the choice of lenders is critical.

Our mortgage brokers specialise in temporary resident mortgages.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan with a temporary visa holder.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Abby
Posts: 3
Joined: Mon May 20, 2019 5:09 pm

Re: Getting a mortgage with a temporary resident

Postby Abby » Mon May 20, 2019 7:08 pm

I see. I don’t think we can qualify for the loan amount we’re looking for without considering my partner’s income. I earn 56k a year as an HR rep while my partner works as a chef making 90k a year. We’ve set aside around 70k and are looking to borrow around $600,000-$650,000 for our house. I’m concerned if the banks will assess my partner’s full income or not?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
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Re: Getting a mortgage with a temporary resident

Postby Otto Dargan » Mon May 20, 2019 11:02 pm

Hi Abby,

Most lenders will ignore your partner’s income if they are not an Australian citizen or permanent resident. However, this a very grey area of policy, we’ve helped many clients get approved by making a strong case.

Your partner’s full income is likely to be considered if:
  • Partner has a valid work visa for Australia.
  • Partner lives in Australia.
  • Partner has ties to Australia such as family or relatives in Australia.
  • You have children together.
  • You’re married or have been defacto for over two years.
  • The Australian citizen or PR holder is the main income earner.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Abby
Posts: 3
Joined: Mon May 20, 2019 5:09 pm

Re: Getting a mortgage with a temporary resident

Postby Abby » Tue May 21, 2019 11:28 am

Fffs… let’s say we got approved for our desired loan amount. Will we be hit with a significantly higher interest rate?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Getting a mortgage with a temporary resident

Postby Otto Dargan » Tue May 21, 2019 12:33 pm

Hi Abby,

Not necessarily, just because an AU PR holder is buying with a temporary resident (482 visa or otherwise) doesn’t mean you’ll be paying a higher interest rate. In fact, you may qualify for significant home loan fee discounts and special interest rates that are way below the Bank Standard Variable (BSV) rate.

You would need to prove you’re in a good financial position, with a stable job, and a good deposit. You’re potentially eligible for the same discounts as an Australian citizen.

Buying with a temporary resident can get complicated so, please speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a home loan with a 482 visa holder

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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