How much a 457 visa holder can borrow for a home loan?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: How much a 457 visa holder can borrow for a home loan?

Post by Otto Dargan »

Hi Speed of Sound Sonic, Welcome to the forum.
457 visa holders are eligible for a home loan in Australia. However, the amount that they can borrow depends on their situation, employment history, and their marital status. Moreover, people who are in Australia on a work visa can borrow 80% with select banks who are happy to work with foreign citizens living in Australia.

Your borrowing amount depends on the below:
  • 80% of the property value can be borrowed by most foreign citizens living in Australia
  • 90% of the property value can be borrowed as a special exception to standard lending guidelines
  • There are special loan packages available for medical professionals
  • If you are married to an Australian permanent resident or citizen, then you may be eligible to borrow up to 95% of the property value.
Please note that not everybody on a 457 visa is eligible. The lending policy is complicated and varies from lender to lender. You’re likely to get approved if:
  • You have at least a year remaining on your visa.
  • Most of your savings are already in Australia.
  • You have a stable job in a sought after profession.
It isn’t necessary to have an Australian credit history or to be buying a property with an Australian citizen.

Also, note that as a 457 visa holder you would first need to get Foreign Investment Review Board (FIRB) approval. The FIRB is the regulatory body which examines whether your investment in the particular property is beneficial to the Australian economy or not.

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: How much a 457 visa holder can borrow for a home loan?

Post by Otto Dargan »

Hi Speed of Sound Sonic,

It will not immediately impact the property that you own. You have two options in such case:
  • You can find another employer to sponsor you.
  • You can apply for another visa such as a bridging visa.
After 28 days, the Department of Immigration and Citizenship (DIAC) may issue you a letter notifying you that they intend to cancel your visa. You have seven to eight days to reply to this letter stating why they should not cancel your 457 visa.

If you do lose your 457 visa then you’re no longer able to live on your property and must leave the country. If the property is an older residence, then it must be sold.
However, if the property was new when you purchased it or was vacant land that you have built a residence on, then you’re able to keep the property as an investment.

You can discuss your situation and loan needs with one of our mortgage brokers by calling us on 1300 889 743. You can also fill in our free online assessment form and one of us will contact you instead.

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

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