Would lenders accept an applicant on Bridging Visa?

[Tina Lee]

My partner and I are looking at a house that is valued at $465,000. I am a citizen but my partner is currently on Bridging Visa A. We have only saved around a $20,000 deposit. At the moment, we're trying to get a feel of how much we can borrow in this situation. Would lenders accept an applicant on Bridging Visa?

[Otto Dargan]

Hello Tina. Welcome to the forums.

Since you are an Australian citizen, you and your partner will be able to borrow up to 95% of the property value, if not it would be limited to 80%.

However, there are a number of factors that lenders will look into when approving your loan under bridging visa:

• What visa your husband was on prior to being on bridging visa
• The visa your husband is applying for now (whether it’s PR, work visa, spouse visa, temporary visa, etc)
• The time it will take for your new visa to be granted.
• The overall merit of your application.

Please note that if you are borrowing over 80%, you will need to pay Lenders Mortgage Insurance (LMI), and most lenders would require at least a 5% to 10% deposit for the home loan.

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

Cheers,

[Tina Lee]

Thanks for the information. He is currently applying for a spouse visa. Should we try to save for a larger deposit to increase our chances of approval? We only want to apply for a home loan once our application is strong.

[Otto Dargan]

Hi Tina,

Saving a large deposit is one of the ways to improve your chances. The best part is, the deposit can be a gifted deposit from your parents.

You might even get a guarantor home loan with LMI waived.

There are other factors that lenders will look into when assessing your application:

• The length of your relationship.
• The employment status of both applicants.
• The credit history of both applicants
• The type of property you are buying

Furthermore, if you and your husband are buying as joint tenants, then Foreign Investment Review Board approval is not required.

Cheers,

[Tina Lee]

Will my husband be eligible for the FHOG once he gets a spouse visa?

[Otto Dargan]

Yes, as long as he meets the eligibility criteria for a First Home Owners Grant (FHOG), then he can receive the grant.

The eligibility criteria for the grant are:

• At least one applicant is a citizen or a Permanent Resident
• Neither applicant has owned a residential property in Australia before 1 July 2000.
• There is a threshold on the value of the property (which varies between states).
• This is the first time either applicant is receiving the grant.
• Either of you must occupy the residence for at least six months after getting the grant approved.

We can help you with your FHOG application so that there are no errors to ensure that you get your home loan approved faster.

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.

Cheers,