Can a foreigner buy a property in Australia?

Any general questions you might have in regards to loans and finance.
oldisGOLD
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Can a foreigner buy a property in Australia?

Postby oldisGOLD » Thu Dec 18, 2014 9:11 am

Hello,

I am from Lucknow, India. I got approved for a 457 visa a few days back. I will be coming to Australia after a month and I am looking for a place to live. I would prefer not to rent. Is it possible for a foreigner to get a mortgage in Australia?

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Otto Dargan
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Re: Can a foreigner buy a property in Australia?

Postby Otto Dargan » Thu Dec 18, 2014 9:43 am

Hi and welcome to the forums oldisGOLD.

There are provisions of foreigner mortgages in Australia. In most cases, it is possible for foreigners looking to buy a property in Australia to borrow up to 80% loan to value ratio, i.e. the ratio of loan to the purchase price of the property.

For temporary residents, the amount that they can borrow depends on the type of visa they hold. Temporary residents may be able to borrow up to:
  • 80% of the property value: Almost all temporary visa holders are eligible to apply up to 80% of the property value.
  • 90% of the property value: Some lenders may consider a loan up to 90% if you have a stable employment and are in a strong financial position.
  • 95% of the property value: It may be possible to get a loan up to 95% of the property value if you are married to an Australian citizen or a permanent resident of Australia.
Cheers,
Otto
Otto Dargan
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oldisGOLD
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Joined: Thu Jun 20, 2013 6:29 pm

Re: Can a foreigner buy a property in Australia?

Postby oldisGOLD » Thu Dec 18, 2014 10:10 am

What about the interest that I would have to pay? Are the interest rates higher for a foreign citizen?

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Otto Dargan
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Re: Can a foreigner buy a property in Australia?

Postby Otto Dargan » Thu Dec 18, 2014 10:27 am

Hi oldisGOLD,

Most lenders charge a higher rate of interest to foreigners. However, there are some lenders that may be willing to offer the same competitive professional packages and loan discounts that they offer to Australian citizens.

Getting approved for a home loan is relatively simple if you apply with a lender that commonly works with foreigners. You can contact us to act as your mortgage broker to help you find the the most suitable lender for your situation. We can help you verify your income, identify you and confirm that you are eligible for a home loan. Please visit our website for more information.

We can be reached on 1300 889 743 or you can fill an online enquiry to contact us.

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

oldisGOLD
Posts: 40
Joined: Thu Jun 20, 2013 6:29 pm

Re: Can a foreigner buy a property in Australia?

Postby oldisGOLD » Thu Dec 18, 2014 10:45 am

Thank you very much for such an informative reply. I will call you within a day to get started on the application process.

moodyjack
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Re: Can a foreigner buy a property in Australia?

Postby moodyjack » Tue Feb 24, 2015 12:11 pm

Hi there,

I am from the USA and work in Australia as a regional sales manager. I hold a 457 visa and am looking to buy a home in Sydney. Do I need to get an approval from the government to buy the house?

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Otto Dargan
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Re: Can a foreigner buy a property in Australia?

Postby Otto Dargan » Tue Feb 24, 2015 12:45 pm

Hi moodyjack,

All foreigners who would like to buy a home or invest in Australia need an approval from the government. It is called a Foreign Investment Review Board (FIRB) approval. The review board assesses all the applications from foreigners and decides whether they will be allowed to buy a property in Australia or not.

You will need FIRB approval if you fall into one of the following categories:
  • Temporary resident
    If you are on a temporary visa such as a spouse visa, 457 work visa or a student visa, then you are considered a temporary resident. As a temporary resident:
    • You can only buy one established dwelling for residential purpose. You must live in it and sell it once you do not live there anymore.
    • You can buy an investment property. However, it must be a new property or a vacant land on which you will build a new property.
    • You do not need FIRB approval if you are buying a property with an Australian citizen as joint tenants.
  • Foreign investor
    You will be considered as a foreign investor if you want to buy a property as an investment property. The following provisions exist for foreign investors:
    • The investment property must be a new property or vacant land to build a new property.
    • You cannot buy an established dwelling as an investment property.
    • You can buy a new property and rent it out to your child if the child is on a temporary visa.
Please refer to the FIRB website for full details. If you need any help with your loan application, please free to call us directly.

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

moodyjack
Posts: 47
Joined: Wed Jun 17, 2009 4:36 pm

Re: Can a foreigner buy a property in Australia?

Postby moodyjack » Tue Feb 24, 2015 1:45 pm

Thank you so much, Otto! I will definitely give you a call because I will need help in obtaining the FIRB approval.


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