Can A Temporary Resident Get A Home Loan?

• Yes, you can get a home loan as a temporary resident in Australia. To increase your chances of approval:
  • Have a minimum of 12 months remaining on your visa.
  • Have a stable income and employment history.
  • Borrow up to 80% of the property value. You can borrow more if you’re buying together with an Australian citizen.
  • Seek approval from the FIRB.

How do banks view bridging visas?

• Applying for a home loan while on a Bridging visa is possible, although it’s more complicated. As a general rule, people on a Bridging Visa A (BVA) or Bridging Visa B (BVB) can be accepted for a loan for up to 80% of the value of the property that they’re buying. This is because A & B visa holders are a lower risk, and have held a substantive visa before.
• The amount you can borrow and the lenders that can approve your loan will depend on several different factors:
  • The visa that you were on prior to your bridging visa.
  • The visa that you’re applying for now. For example, Australian permanent residency (PR), work visa, temporary visa / spouse visa / partner visa, or Temporary Residency (TR).
  • The length of time until your new visa will be granted / assessed by the Department of Immigration & Citizenship.
  • Any factors that will have a significant impact on your application such as being married to an Australian citizen or working in a high demand profession.
  • The overall merit of your application.

How Much Can I Borrow?

• The amount that you can borrow depends on the type of temporary visa that you hold:
  • 80% of the property value: Most temporary visa holders can apply for a mortgage if they are allowed to work in Australia for at least 12 months.
  • 90% of the property value: Some visa holders may be eligible to borrow up to 90% of the property value if they have a strong income, stable employment and longer-term visa.
  • 95% of the property value: If you’re married to or defacto with an Australian citizen or permanent resident, regardless of your visa.

Which Visa Subclass Will Australian Banks Lend To?

• The Australian government and the FIRB doesn’t restrict particular visa types from borrowing money but the Australian banks and other lenders may not approve loans for some temporary residents (TR).
• Preferred Visas: The list below includes visa types that Australian lenders tend to consider as “Australian citizens”. These visa holders may be entitled to borrow up to 95% of the property value:
  • Interdependency Visa (subclass 310/110 and 826/814).
  • Spouse / spousal / partner visa (subclass 309/100 and 820/801).
• Accepted Visas: The list below includes visa types that Australian lenders tend to consider as “non-residents” and will restrict the loan to 80% to 90% of the property value. If you’re married to an Australian Citizen or PR then you can borrow 95% of the property value:
  • Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457) and 482 Temporary Skill Shortage (TSS) visa loans available to 90% of the property value as a special exception to normal bank criteria. Conditions apply.
  • Skilled Employer Sponsored Regional (Provisional) Visa (Subclass 494)
  • Skilled Work Regional (Provisional) Visa – (Subclass 491)
  • Temporary Work (Long Stay Activity) visa (Subclass 401).
  • Temporary Work (International Relations) visa (Subclass 403).
  • Investor Retirement visa (Subclass 405).
  • Working Holiday Visa (Subclass 417).
  • Business Owner (Provisional) Visa (Subclass 160).
  • State or Territory Sponsored Business Owner (Provisional) Visa (Subclass 163).
  • Senior Executive (Provisional) Visa (Subclass 161).
  • State or Territory Sponsored Senior Executive (Provisional) Visa (Subclass 164).
  • Investor (Provisional) Visa (Subclass 162).
  • State or Territory Sponsored Investor (Provisional) Visa (Subclass 165).
  • Skilled Regional (Provisional) visa (subclass 489).
  • Business Visitors Visa (Subclass 456).
  • Visiting Academics Visa (Subclass 419).
  • Sport Visa (Subclass 421).
  • Entertainment Visa (Subclass 420).
  • Skilled Exchange Visa (Subclass 411).
  • Film, Media, Actors and Support Staff, Photographers and Journalists Visa (Subclass 423).
  • Emergency Visas (Subclasses 302 & 303).
  • New Zealand Citizen’s Family Members Visa (Subclass 461).
  • Religious Worker Visa (Subclass 428).
  • Skilled – Regional Sponsored visa (Subclass 475).
  • Special Program Visa (Subclass 416).
  • Prospective Marriage visa (Subclass 300).
  • Medical Treatment Visa.
  • Medical Practitioner Visa (Subclass 422, loans available to 90% of the property value).
  • Sponsored Family Visitors Visa (Subclass 679).
  • Special Category Visa (Subclass 444).
  • Contributory Temporary Parent Visa (Subclass 173).
  • Contributory Temporary Aged Parent Visa (Subclass 884).
  • Student Visa (Subclass 572, 573, 574, 575 & 576).
  • Temporary Graduate Visa (Subclass 485).
  • Student Guardian Visa (Subclass 580).
  • Business Innovation and Investment (Provisional) visa (subclass 188).
  • Holiday and Visiting Visas (Subclass 976).
  • Short Validity Business ETA Visas (Subclass 977).
  • Long Validity Business ETA Visas (Subclass 956).
  • Bridging Visas (A, B, C, D & E).

Can I Buy A House On A 485 Visa?

• Yes, you can. However, there might be only a handful of lenders that can help, and the maximum LVR you can borrow might be up to 80% of the property value. When assessing your application while on a 485 Temporary Graduate Visa, lenders will look at:
  • Whether you have at least 12 months remaining on your visa
  • Whether you want to be a permanent resident of Australia.
  • If you’re on a 485 Visa and you want to buy property in Australia, FIRB approval is required.

Are You A Significant Investor (Siv 188 Visa)?

• The SIV 188 visa came into effect as a new stream within the Business Innovation and Investment (Provisional) (Subclass 188) and the Business Innovation and Investment (Permanent) (Subclass 888) visa on 24 November 2012.
• Effectively, it allows high net worth (HNW) foreign investors to live in Australia for up to five years, with the option to apply for the permanent 188 visa.
• We have more negotiating power with certain lenders for borrowers on the SIV visa.
• For example, most lenders will only consider income in Australian Dollars (AUD). Others will accept foreign currency but will require that the majority of your income be the same as your country of residence.
• With the Significant Investor Visa, some lenders may be willing to waive these requirements so you can qualify for a mortgage in Australia and grow your property portfolio.

What Is FIRB and Who Needs It?

• FIRB is an Australian government department that assesses applications from foreigners who would like to invest or buy a home in Australia.
• Temporary Residents:
  • a spouse visa, 457 work visa, a Temporary Skill Shortage (TSS) visa or student visa.
  • You can only buy one established dwelling, and it must be to live in; however you will be required to sell it once you do not live there anymore.
  • You can buy an investment property; however, it must be a new property or vacant land to build a new property.
  • You don’t need FIRB approval if you’re buying the property with an Australian citizen as joint tenants and you’re in a spousal relationship. This means it doesn’t apply to other relationships like business partners, mother/father and child, siblings, friends or relatives.
• Foreign Investors:
  • The investment property must be a new property or vacant land to build a new property.
  • You can’t buy an established dwelling as an investment property.
  • They can buy a new property in their name and rent it out to their child that is on a temporary visa.
• Exceptions For Foreign Citizens:
  • The property developer has obtained an exemption certificate for the new property that you are buying.
  • You were awarded the property by a court order.
  • You were awarded the property in a divorce settlement.

Should I Buy Now Or Wait To Become A Permanent Resident?

• If you’re currently on a bridging visa and will receive your permanent resident (PR) visa, we recommend you wait.
• Alternatively, if you can’t wait and you’re planning to buy with an Australian citizen or PR holder, you may want to consider purchasing in their name.
• Some benefits of waiting to buy with a permanent resident are:
  • You qualify with more lenders and might be eligible to borrow at lower rates.
  • Skip the cost and hassle of FIRB approval.
  • Save thousands on foreigner stamp duty surcharge.

Property purchasing costs

• Minimum of 5% deposit
• Stamp duty
• Property title transfer fee
• Registration fees
• Conveyancing fees
• Inspections including building/strata and pest
• Home loan set up fees
• Lenders Mortgage Insurance (LMI)

Property selling costs

• Agent Fees
• Marketing Costs
• Conveyancing Fees
• Capital Gains Tax (CGT)
• Presale Repairs and Renovations
• Styling/ Home Staging
• Auctioneer’s Fees
• Lender Fees
• Moving Costs