What is a student visa mortgage?

Being a student visa holder doesn’t automatically qualify you for a mortgage in Australia, but you may still be able to borrow with help from your parents!

What are my options?

The first best method of buying a property is for your parents to buy an investment property in Australia in their name and to rent it to you. They would be doing this as an overseas property investor. So they must meet standard Australian bank lending criteria and need to apply for the Foreign Investment Review Board (FIRB) approval. Most of the time, your parents will be eligible to borrow up to 70% of the property value. However, to qualify for FIRB approval, your parents must be buying a new property, not an existing home. The second option is to utilize the income from your overseas parents to service the loan, using full documentation or low documentation (Self employed) evidence for income. Your parents would not need to be on the title of the property. They will only be servicing the loan with their income for you.

What if I have a job?

If you have a job and you are not working more hours than is allowed by your visa conditions, then we may be able to assist you in buying a property in your own name. To apply for a student visa mortgage in your own name you must have:
  • A good credit history in Australia.
  • Stable employment.
  • An ability to repay the loan and pay for your living expenses without relying on funds from your parents.
Most importantly, you must be able to prove that you can afford to repay the student visa mortgage using your income in Australia. This means that you will need to provide payslips, tax returns or a letter from your employer, depending on the lender that we help you to apply with. However, if you cannot prove an income in Australia, then you should get your parents to buy a property in their name. You can’t apply for a home loan with your parents as a guarantor. To speak to someone who has in-depth knowledge of a student visa mortgage, please call us on 1300 889 743 or enquire online for some professional advice.

How much can I borrow on a student visa?

Despite being on a student visa, our lenders will allow international students on certain visa types to borrow up to 90% of the value of the purchase price, provided they meet the lending criteria. Some lenders may even be able to offer you a discounted student visa mortgage. Want to find out your borrowing power? Discuss your situation with our mortgage brokers, and they can quickly work out how much you will be entitled to borrow. Enquire online or call us on 1300 889 743 to find out how we can help you get approved.

Will I need a deposit?

Yes, most banks require you to provide a 20%-30% deposit. You will need another 5% of the purchase price to cover purchasing costs such as stamp duty and conveyancing fees. If your parents choose to gift you some money to put towards the purchase price, then this will be accepted by most major banks. These funds must be deposited into your account before the application can be processed.

How do the lenders view student visas?

We commonly receive enquiries from international students on a temporary visa who wish to buy property in Australia. The difficulty is that most banks have very strict lending criteria when approving a student visa mortgage. Even if you are approved, then the lender may then impose a higher interest rate. It also depends on whether or not you are working, as your employment status can affect your ability to get approval.

Will the banks accept my scholarship income?

Are you currently receiving funds through a scholarship? Unfortunately, most banks will not accept this as part of your income when assessing your ability to repay the debt. However, if your partner is an Australian permanent resident or citizen who is working and you are applying for a loan together, the banks will take your partner’s income into account and you may be eligible to borrow up to 95%! Please see our temporary resident mortgage page for more information. Call us today on 1300 889 743 or enquire online and we can help find you the right lender who will accept your situation as an international student.

Will I get a good interest rate?

That depends. If you have good credit and can demonstrate your ability to repay the debt, most banks will offer standard interest rates. However, as a general rule of thumb, lenders view students as high-risk borrowers and will charge a higher interest rate for the loan.

Will I need FIRB approval?

You will need Foreign Investment Review Board (FIRB) approval unless you are buying the property with a permanent resident or Australian citizen. The Foreign Investment Review Board (FIRB) is generally concerned with the type of property being purchased. The FIRB has a more flexible policy for those who are purchasing an owner-occupied dwelling. Approval is not overly complicated and is usually granted within two weeks. If you are buying real estate in the name of your parents, then different criteria will apply as they are not living in Australia.

Why is buying land and building a good option?

Buying a vacant land and building a house is an excellent option to reduce the cost of foreign citizen stamp duty as stamp duty is charged on the land value. It essentially halves the stamp duty payable. To qualify, the builder must be a Housing Industry Association (HIA) member or have an acceptable industry membership. Owner-builders are not accepted.

Get fast approval!

Bank policy is continually changing! By speaking to an expert in student visa mortgages, you can get the most accurate and up-to-date information available. Our mortgage brokers can choose from over 40 major banks and specialist lenders. This means we will shop around to find the right lender for you. Call us now for an obligation free consultation on 1300 889 743 or fill in ourenquire online form and one of our mortgage brokers will contact you to discuss the options available to you.