Can I get a mortgage as a foreigner in Australia?

Any general questions you might have in regards to loans and finance.
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yamyam
Posts: 49
Joined: Wed Jul 03, 2013 8:34 pm

Can I get a mortgage as a foreigner in Australia?

Post by yamyam »

Hello everyone,

I am French and I have been working in Melbourne for a supermarket chain. I have a yearly income of $73,000. I was thinking of buying a house worth about $600,000.

However, I am not sure about the amount I may be able to borrow and also the interest rate that I will pay. Could someone give more information about that? Also, any relevant info on the topic will be much appreciated.

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Otto Dargan
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Location: Sydney, Australia
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Re: Can I get a mortgage as a foreigner in Australia?

Post by Otto Dargan »

Hi and welcome to the forums yamyam.

As a foreign national working in Australia, it is possible for you to get a loan to buy a property. You may be offered the same interest rate as that offered to an Australian.

Despite having no restrictions on the visa type of borrowers, lenders prefer foreign workers with the following visas:
  • Investor Retirement Visa (Subclass 405)
  • Temporary Business (Long Stay) – Standard Business Sponsorship
  • (Subclass 457)
  • Foreign Government Agency Visa (Subclass 415)
  • Domestic Workers Visa (Subclass 426)
  • Diplomats Visa (Subclass 995)
Your personal situation, employment history, and marital status will have a bearing on how much you may actually be able to borrow. You may be able to borrow:
  • 80% of the property value with some lenders if you are in Australia on a work visa.
  • 95% of the property value with lenders who are have made a special exception to the normal lending criteria while giving out a loan to foreign workers.
  • And qualify for special loan packages on case by case bases if you are a medical professional working in Australia.
It should be noted that you are required to get an approval from the Foreign Investment Review Board (FIRB) before you buy a property in Australia.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
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yamyam
Posts: 49
Joined: Wed Jul 03, 2013 8:34 pm

Re: Can I get a mortgage as a foreigner in Australia?

Post by yamyam »

Thank you for taking the time to respond. I am excited to know that I may be able to borrow up to 95% of the property value while getting a mortgage in Australia. But one of my friends was saying that the maximum that I may be able to borrow is 80% LVR, and he works for a bank himself. What am I missing?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I get a mortgage as a foreigner in Australia?

Post by Otto Dargan »

Hi yamyam,

As mentioned earlier, some lenders have made exceptions to the normal lending criteria and may offer up to 95% of the property. All the major banks may not have introduced this exception and it is likely that your friend may be working for one of these.

You would still need to have 13% of the property price available to you in order to cover the deposit, stamp duties and lenders mortgage insurance (LMI)if you qualify for a 95% home loan. It would be better if you contacted an experienced mortgage broker who specialises in home loans for temporary residents to look for the various offers that may be available to you.

If you would like to know more about these then you can check out our website. We can also be reached on 1300 889 743 or you can fill in our free assessment form to see if you qualify for a loan or not.

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

yamyam
Posts: 49
Joined: Wed Jul 03, 2013 8:34 pm

Re: Can I get a mortgage as a foreigner in Australia?

Post by yamyam »

Thanks again. I will call your office by the end of the week to discuss the various options available to me and to make the best out of my situation. Cheers!

marylamb
Posts: 47
Joined: Wed Jun 17, 2009 5:44 pm

Re: Can I get a mortgage as a foreigner in Australia?

Post by marylamb »

Hi everyone!

I am a worker on 457 visa and I was also thinking of buying my own house. However, I have heard that temporary residents will not be able to retain the ownership of their property once their visa expires. Is that really true? What is the point in buying a house if we are not allowed to keep it?

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I get a mortgage as a foreigner in Australia?

Post by Otto Dargan »

Hi marylamb,

It all depends on whether your purchase is a new or an older piece of property. Temporary residents in Australia are only allowed to own a lived in property as their primary residence. That means that if you have to leave Australia then you will not be able to retain its ownership since you are not allowed to rent out a property.

However, if the property is a new dwelling then you may be allowed to keep the property as an investment even when you leave the country. That is because the Australian government does not allow foreigners to invest in old properties since that may lead to unnecessary speculation and spiralling of property prices.

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

marylamb
Posts: 47
Joined: Wed Jun 17, 2009 5:44 pm

Re: Can I get a mortgage as a foreigner in Australia?

Post by marylamb »

Oh.. I see. I guess I will have to look around for a new house since I plan on having a house in Australia for the foreseeable future. That is too bad since I had already found a property that would be ideal for me except that it is not a new one. Thanks for the reply!

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