Home loan on a 489 visa?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Home loan on a 489 visa?

Post by Otto Dargan »

Hi idioteque.

Welcome to the forums.

Although the Australian government and the Foreign Investment Review Board (FIRB) don't restrict temporary residents from getting a home loan, some banks and lenders may not lend to them.

Since you're on a 489 visa, most Aussie lenders will consider you as a "non-resident" and limit the amount you can borrow. However, you may still be able to borrow up to:
  • 80% of the property value: You'll need a 20% deposit to borrow at 80% and avoid paying Lenders Mortgage Insurance (LMI). Lenders generally charge LMI when you borrow more than 80% of the property value and it can amount to several thousands of Australian dollars.
  • 90% of the property value: You'll basically need to have a clean credit history and a strong income with a stable employment to qualify for a home loan at this LVR (including LMI) with most lenders.
Please note that you may need government approval to actually proceed with the process.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Home loan on a 489 visa?

Post by Otto Dargan »

Hi idioteque,

Yes, you'll need FIRB approval to purchase property because you're a temporary resident. However, if you're buying property as joint tenants with an Australian citizen spouse then you won't need it.

This also ties in directly to your second question. Since you're on a 489 visa, you don't qualify for the First Home Owners Grant (FHOG). However, you may qualify if you're buying with an Australian citizen spouse.

Note that if you're buying the property together as tenants in common then you may still need government approval and you may not qualify for the FHOG.

If you want to learn about the specific qualifying criteria for the FHOG as well as the guidelines on FIRB approval, you can check out our website. You can also speak with one of our credit specialists directly on 1300 889 743 or enquire online.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Home loan on a 489 visa?

Post by Otto Dargan »

Hi wallaby,

Yes, you may be able to borrow 90% of the property value on a 161 visa. You'll need to meet the following requirements to qualify:
  • Purpose of the mortgage: You can borrow only to purchase, refinance or build an owner occupied or investment property. Lenders may assess other loan purposes such as debt consolidation on a case by case basis.
  • Credit history: Most lenders will want you to have a clean credit history. However, minor paid utility defaults and other small defaults can be accepted if your loan application is strong in other areas.
  • Timely payments: You must be paying your debts such as rent and credit cards on time every time. This shows that you're good with money and that you can manage your finances.
  • Employment and income: Lenders prefer stable employment with 6 months of work history in your current job or 2 years in the same industry. You must also have a strong income to be able to afford the loan.
  • Savings history: Some lenders will require you to have kept or accumulated 5% of the purchase price in a bank account for at least 3 months.
You can browse through our website or give us a call for detailed information relative your situation and loan needs.

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

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