Can I get a construction home loan on a 457 visa?

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twoba
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Joined: Mon Jun 15, 2009 12:11 pm

Can I get a construction home loan on a 457 visa?

Post by twoba »

Hello,

I have been in Australia for the last 2 years on a 457 work visa. Since coming to Australia I have been renting for $450 a week. I work as an auto electrician in the mines in far North Queensland. I am looking to get a mortgage for roughly 640k to build a new home.

I am single with no other loans or liabilities and have a 20% deposit to put towards the purchase. I am aware that those on 457 visa's are able to get a loan but am unsure as to whether I will be able to build or not.

Are there banks that will approve constructions loan for 457 visa holders? I have also spoken with a couple of real estate agents and some have said buying land then getting a construction loan is easier while others have said land and home packages are more favourable to banks. Are you able to clarify this for me?

Cheers :)

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Otto Dargan
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Re: Can I get a construction home loan on a 457 visa?

Post by Otto Dargan »

Hi Twoba,

I can confirm that those like yourself that are on 457 visa's in Australia are able to obtain a home loan to build their own home.

You might like to have a read over our 457 visa pageand our construction loan page to get a better understanding of this type of loan.

What you should know: Banks tend to favour loan applications where the security is a land and home package. This is because the banks are able to have full control over the whole property not just either the land or the construction. Alternatively you can purchase the land and the construction separately. This can be done through the same bank under two separate loans or one loan with two splits.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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twoba
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Joined: Mon Jun 15, 2009 12:11 pm

Re: Can I get a construction home loan on a 457 visa?

Post by twoba »

Thank You Otto,

So if I decide on taking two separate loans; ie. one for the land and the other for the construction, I will need 10% deposit on both of these loans?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I get a construction home loan on a 457 visa?

Post by Otto Dargan »

Hi Twoba,

You may need a larger deposit if you choose to obtain two completely separate loans either with the same bank or different banks. Your options are:

One loan with two splits:
  • Both the land and the construction will be packaged under one loan.
  • There will be two splits in the loan I.e. One for the land and one for the construction.
  • The splits can each have different loan products E.g. one can be interest only.
  • You will only require a 10% deposit.
Two separate loans:
  • You will have two completely separate loans.
  • You will need a deposit for each loan.
  • You can have your loans with different banks.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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