Can I get a mortgage in Australia if I'm on 457 visa?

Any general questions you might have in regards to loans and finance.
Maharjan
Posts: 9
Joined: Tue May 29, 2018 2:42 pm

Can I get a mortgage in Australia if I'm on 457 visa?

Postby Maharjan » Fri Jun 01, 2018 12:29 pm

Hi there,

I am a Vietnamese national (457 visa) and I have been working in Australia for the last 3 years. Currently, I’m living in an apartment provided by my company but they’re planning to remove this benefit. So, I’m considering to buy a property for myself instead of renting one. I am thinking of moving into a studio apartment.

I earn $75,000 annually and have accumulated $50,000 in savings. I was wondering if foreigners working in Australia could get a mortgage. I would be glad if someone from your team could tell me more about this.

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Otto Dargan
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Re: Can I get a mortgage in Australia if I'm on 457 visa?

Postby Otto Dargan » Fri Jun 01, 2018 1:39 pm

Hello Maharjan. Welcome to the forum.

Lenders may be willing to approve a loan for people on a 457 visa to get a home loan in Australia. The amount that you may be able to borrow depends on your circumstances such as your employment history and marital status. You may be able to borrow:
  • 80% of the property value with select lenders who are comfortable with working with temporary residents.
  • 95% of the property value as an exception to the normal lending guidelines.
  • Special loan packages if you are a medical professional.
On top of the required deposit on your loan, you will need to have funds to cover other fees associated with your purchase such as stamp duties and legal fees.

If you are borrowing more than 80% of the property value then you may need to pay a one-off fee for Lenders Mortgage Insurance (LMI). This means that if you get approved for a 95% home loan then you will need to have around 13% of the property value with you.

Please keep in mind that you must have at least a year remaining on your visa and most of your savings are already in Australia to get the home loan approved.

You’ll get the same standard rates available to Australian citizens. Some lenders even offer substantial discounts and rates lower than the Bank Standard Variable (BSV) rate if you qualify for a professional package.

As a foreigner buying a property in Australia, you may have to get a Foreign Investment Review Board (FIRB) approval. You will not need such an approval if you are buying together with an Australian spouse as joint tenants.

You can enquire online or give us a call on 1300 889 743 if you want to know more.

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

Maharjan
Posts: 9
Joined: Tue May 29, 2018 2:42 pm

Re: Can I get a mortgage in Australia if I'm on 457 visa?

Postby Maharjan » Fri Jun 01, 2018 3:29 pm

Thanks for that. Recently, I’ve came across a 45 sqm studio apartment for $320,000 in Sydney. How much can I borrow and how much I have to pay?

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Otto Dargan
Mortgage Specialist
Posts: 7021
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a mortgage in Australia if I'm on 457 visa?

Postby Otto Dargan » Fri Jun 01, 2018 6:01 pm

Hi Maharjan,

Some of our lenders to allow for loans of up to 90% of the property value for work visa holders and temporary Australian residents who are working in Australia. This is designed to help you buy a home with a smaller deposit.

If you’re borrowing 90% then you’ll typically need around 18% of the purchase price to cover the deposit. It’ll usually cover:
  • a FIRB approval fee of $5,000,
  • Stamp duty of $25,600 (including foreign surcharge),
  • Mortgage registration and a transfer fee of $280, and
  • Lenders Mortgage Insurance (LMI) of approx $4,470.
Please note the above calculation is an indicative figure only.

Besides, there are various other costs involved in a purchase such as conveyancing costs, valuation fees and loan application fees etc.

You can call us on 1300 889 743 to talk to a mortgage broker or fill out our free assessment form if you need to discuss your home loan application in more detail.

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

Maharjan
Posts: 9
Joined: Tue May 29, 2018 2:42 pm

Re: Can I get a mortgage in Australia if I'm on 457 visa?

Postby Maharjan » Fri Jun 01, 2018 10:07 pm

Thanks for the information, Otto. It was very helpful. I’ll definitely call you guys to discuss further.


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