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
Can I get a construction home loan on a 457 visa?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Can I get a construction home loan on a 457 visa?
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:
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:
- You will be eligible to borrow up to 90% loan to value ratio.
- You will need at least a 10% deposit plus property purchase costs.
- You will not incur any higher interest rates because of your residency status.
- You will not be eligible for the Australia first home owners grant.
Re: Can I get a construction home loan on a 457 visa?
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?
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?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Can I get a construction home loan on a 457 visa?
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:
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.
- You will have two completely separate loans.
- You will need a deposit for each loan.
- You can have your loans with different banks.