+ How Much Can I Borrow?

• 80% of the property value: If you do not have sufficient documents to prove your foreign income your borrowing may be limited to 80% of the property value.
• 90% to 95% of the property value: If you are in a good financial position, have a high income and stable employment, you may be eligible to borrow between 90-95% of the purchase price. This applies to Australians with dual citizenship, Australian expats living overseas who are married to a foreign citizen or those who are currently living in Australia or New Zealand and intend to move overseas at a later date.

+ Will my currency be accepted?

Since you’re earning an income in a foreign currency, the first thing you’ll have to work out is whether your currency will be accepted. The most common currencies we deal with include: * US Dollar (USD). * Great Britain Pounds Sterling (GBP). * Euro. * Singapore Dollar (SGD). * Canadian Dollar (CAD). * Hong Kong Dollar (HKD). * Japanese Yen (JPY). * Swiss Franc (CHF). * New Zealand Dollar (NZD). * Chinese Renminbi (CNY). For the above currencies, there is a good chance that we will be able to get you approved for a loan but what if you earn an income in a currency that falls outside of this list? You may still be able to qualify for a mortgage although restrictions and conditions may apply, such as restricting your borrowing power to 80% of the property value (Loan To Value Ratio): * Indian Rupee (INR). * Indonesian Rupiah (IDR). * Vietnamese Dong (VND). * Mexican Peso (MXN). * Swedish Krona (SEK). * Russian Ruble (RUB). * Norwegian Krone (NOK). * Turkish Lira (TRY). * South Korean Won (KRW). * South African Rand (ZAR). * Brazilian Real (BRL). * United Arab Emirates Dirham (AED). It’s important to keep in mind that investment policy changes on a regular basis including which currencies lenders will accept for the purposes of expats and foreign investors wanting to purchase property in Australia.

+ Which work visa types will the banks lend to??

The Australian Government doesn’t restrict particular visa types when it comes to borrowing money however Australian banks and other lenders tend to prefer the below working visa types:

• Investor Retirement Visa (Subclass 405)
• Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457)
• Foreign Government Agency Visa (Subclass 415)
• Domestic Workers Visa (Subclass 426)
• Diplomats Visa (Subclass 995)
• Medical Practitioner (Temporary) Visa (Subclass 422)

In particular, we receive many applications from Temporary Business (long stay) 457 visa holders who have been sponsored by their employer and are looking to apply for a loan to buy a property in Australia.

+ Will I need a deposit?

Most non-residents looking for a home loan will need to provide a 5% deposit and have enough funds to pay for stamp duty and other expenses. This deposit must usually be in the form of genuine savings, or it may not be accepted by lenders.

If you have a larger deposit or already own real estate in Australia then you may not be required to prove any genuine savings.

+ How can I prove my income?

If your payslips or foreign tax returns are in English then these can be provided as evidence of your income. Several of our lenders have specialist non-resident departments with staff that understand most common languages, so even if your documents require translation this is not normally a problem.

One of our lenders can accept a letter from your employer as evidence of your income if you are borrowing no more than 80% of the value of your property.

This can simplify the verification process if you work in a country where formal written payslips are not normally provided.

+ Choose your lender carefully!

The main problem faced by most Australian expatriates is that they have great trouble meeting the requirements to get their loan approved. Did you know that?: * Some banks need to see your original payslips, tax returns and other documents prior to loan approval. * There can be significant delays if you choose a lender that does not have a loan processing system that is designed to handle foreign addresses or foreign phone numbers. * Many lenders will not approve a loan for more than 80% of the property value. * Some lenders may require you to sign a formal loan offer at the nearest Australian Consulate. * Several lenders do not accept Power Of Attorneys (POAs).

+ We are specialists in Australian expat mortgages!

• Many of our customers are Australian citizens or dual citizens living overseas who want to invest in the Australian property market.
• We will choose a lender that accepts your situation. This way, you can avoid many of the headaches associated with applying for a loan.
• Most of our services are FREE.
• We know over 40 banks & lenders.

+ Is Australian government approval required?

No, Foreign Investment Review Board approval is not required, even if you are buying with a spouse who is not an Australian citizen (refer to the FIRB guidelines for more information).

+ Stability

Australia’s property market has a proven record of stable prices. What’s the big difference between Australia and other property markets?

Approximately 70% of Australian households are home owners. There is relatively little speculation. There’s been a consistent under-supply of housing in most capital cities. Australia has responsible lending legislation and prudent economic management which reduces the risk of asset price bubbles. Australia has never had prices fall more than 20% in one year. Overseas property markets such as Hong Kong or the USA have suffered significant crashes that are completely unheard of in Australia. Housing prices in volatile economies can drop up to 70% within a few weeks, leaving investors with huge losses.

This is often because of significant speculation from foreign investors or asset price bubbles fueled by debt. Investors have a smaller impact in Australia as the majority of the housing market is owner occupied.

Since 1900 when records began, the Australian market hasn’t suffered a fall in median house prices over 20% in one year. This is true even the Global Financial Crisis of 2009 / 2010 which saw property prices in the UK and USA fall significantly. Australian houses actually increased in value during this period.

The Australian Prudential Regulation Authority (APRA) manages the lending activities of the banks, which reduces the risk of unsound lending practices causing an unsustainable rise in prices.

+ Consistent Growth Performance

Australian properties have enjoyed consistent capital growth over the last 100 years, with property prices doubling roughly every 7 to 10 years.

One of the reasons behind the growth is Australia’s chronic housing shortage in many of the major cities. The population is growing at a rate much faster than dwellings are being constructed.

The main cap on housing prices is in fact affordability. Effectively, prices have risen in line with the market’s ability to pay for housing.

+ It's easy to invest in Australia

Many countries have very restrictive foreign investment laws or banking regulations that make it difficult to invest.

This isn’t the case in Australia:

You don’t need to setup a company in Australia or buy with a citizen. Government approval for foreign investors is simple and inexpensive. Specialist mortgage brokers can assist you to obtain finance. There’s strong and effective consumer protection legislation in Australia. Australia’s legal system is based on the UK system so it’s familiar to many investors. There’s minimal political, social or other types of instability in Australia. Buying a property in Australia from countries like China, the UK or USA can be difficult if you don’t have the right information or enlist the services of the right people.

You can complete our free assessment form on our website or call us on xxxxxx and one of our mortgage brokers will contact you to provide advice on financing your Australian property investment.

+ Australia is a great place to live

Australia is well known for its diverse international cities and breathtaking natural beauty.

Queensland (QLD) is famous for its wonderful beaches and reefs, Victoria (VIC) for its stunning coast line stretching to South Australia (SA), The Northern Territory (NT) for its distinctive outback experience and New South Wales (NSW) for the tranquil Blue Mountains, beautiful coast and Sydney.

+ Investors can also buy commercial properties

Stability and growth aren’t just features of residential houses, townhouses and units. Most commercial properties such as offices, factories and retail outlets have proven themselves to have excellent returns. Larger foreign investors tend to prefer commercial property, resorts, hotels or developments.

+ Do you need help with finance?

Thinking of investing in Australia?

Call us on xxxxxx (+61 xxxxxx from outside of Australia) to speak to our specialist mortgage brokers who can guide you through the application process. Call us today or fill in our free assessment form.

+ Before you begin - budgeting and planning

It’s essential that you research, plan and budget your property purchase in Australia.

You may have a location in mind, but it’s always helpful to speak to a real estate agent who can offer you some local advice that will help you select an affordable area with great returns.

Making sure that you can afford the property is also important. Australian banks won’t lend to you if you can’t prove that you can afford the debt, so you need to have a realistic and affordable budget in place.

+ Step 1 - Organise your team of professionals

Conveyancer

You’ll need a conveyancer or a solicitor to take care of the legal work for you. Keep in mind that your appointed conveyancer must be in the same state as the property you’re buying or at least be licensed to deal with that state. For Western Australia (WA), they are called settlement agents.

Please view our list of recommended conveyancers if you don’t have one already.

Mortgage broker

A good Australian mortgage broker, with experience in helping non-residents to apply for a loan, is an essential member of your team of experts.

The mortgage broker can be anywhere in Australia. They don’t need to see the property you are buying. For most residential mortgages and loans, their services are free.

If you want to buy a property in Australia then speak to an expert Australian mortgage broker. We’re specialists in non resident mortgages, hold an Australian Credit Licence (ACL) and are also a member of both the Mortgage and Finance Association of Australia (MFAA) and the Credit Ombudsman Service Limited (COSL).

We can finance properties Australia-wide and we regularly work with international borrowers. We have a panel of over 40 lenders to choose from which ensures that you’re getting the best mortgage available.

If you need finance to purchase property in Australia then please call us on xxxxxx (+61 xxxxxx from outside Australia) or complete our free assessment form to discuss your options.

Accountant (if required)

You don’t need to appoint an accountant, but there are a few benefits in having one. Your accountant can help you structure your financials and save you money on tax.

If you’d like to set up Australian companies or trusts to hold your investment, then you’ll need an accountant. Your appointed accountant can be located anywhere in Australia.

Buyer’s agent (if required)

A buyers agent is also very useful if you’re located overseas and can’t physically inspect the real estate you’re buying.

The main job of a buyer’s agent is to source and negotiate the ideal property for you. They’ll deal with the real estate agents for you and will ensure that the property you’re buying represents a good opportunity.

Your buyer’s agent must be licensed and have some presence in the state that you’re buying a property in.

Keep in mind that a buyer’s agent should give independent and objective advice, so should not be selling his/her own properties. Some buyer’s agents will charge a fixed fee, while some other will charge an upfront fee as well as a percentage of the purchase price of the property.

+ Step 2 - Applying for a mortgage

In order to obtain finance it’s essential that you obtain a pre-approval before you begin looking for properties. However, the lending criteria for non-residents can be very complex!

• We have published a handy guide which shows the best available Australian interest rates for foreign investors.
• Ensure that you prepare all necessary loan documents, such as payslips, tax returns or an employment letter to prove your income.

You can find specific lending guidelines for your situation here: * Investors from overseas: If you’re a foreign citizen looking to buy an investment property in Australia. * Temporary residents: If you’re living in Australia on a temporary visa such as a work visa or a spouse visa. * Australian expatriates: If you’re an Australian citizen looking to buy real estate in Australia. * NZ investors: If you’re a New Zealand citizen then some lenders have less restrictive lending guidelines.

To ensure that you get approval, speak to us on xxxxxx (+61 xxxxxx from outside of Australia) or complete our free assessment form and our staff will get back to you.

Our mortgage brokers can offer free assistance and will help you with your loan application.

+ Step 3 - Get your loan pre-approved

It’s essential for you to get your mortgage pre-approved before you begin looking for a property. Good properties don’t stay on the market long.

The buyer with a pre-approved loan usually snaps up the best investments while the others are putting their loan applications together. More importantly, you know that you’re eligible for a loan and how much you can borrow.

Why waste your time looking for a house or unit only to find out that you can’t get a loan?

+ Step 4 - Seek FIRB Approval

If you’re a non-resident or a temporary visa holder, you’re legally required to get permission from the Foreign Investment Review Board (FIRB) if you want to buy property in Australia.

Australian Citizens, Australian permanent residency holders and New Zealand (NZ) citizens are exempt from obtaining FIRB approval.

Getting FIRB approval is a simple process and usually takes up to two weeks from the date the application is lodged.

You won’t actually apply for FIRB approval until you have found a property. However you do need to investigate their requirements so that you don’t buy an ineligible property for foreign investors.

+ Step 5 - Find a property to buy

Now is the time to visit Australia and begin your search for a property. The other option is to use a buyer’s agent (see above).

If you decided not to use a buyer’s agent, then it may be a good idea to use comparable sales to value the property. Make sure that you compare your properties to other properties that have sold outside of the development as this will mean you get a more accurate value.

Often the bank chosen by your mortgage broker will value the property, however the banks often don’t tell you if the valuation comes in short! Our mortgage brokers will always inform you if they become aware that you have overpaid for a property.

+ Step 6 - Negotiate the purchase price

As a general rule, Australian properties usually sell for up to 10% less than their list price. This varies depending on the market, location and type of property. Property in popular suburbs sometimes sell for more than the price that they’re advertised at!

Some real estate websites will publish the “discounting percentage” for particular suburbs, which is the average percentage below the listing price that a property sells for.

If you’re using a buyer’s agent, then they’ll help you in negotiating the price.

You can ask for a contract before signing, and get your solicitor or conveyancer to look at the contract and add any additional conditions if necessary.

Each state of Australia has their own property laws, use your conveyancer or solicitor’s expertise to help guide you. If the vendor allows a cooling off period you can put a holding deposit and sign the contract.

Refer to your conveyancer or solicitor, they’ll let you know what checks you have to do before buying and will let you know when it’s safe to sign the contract to buy the property.

If you’re unable to get a loan during the cooling off period, your maximum penalty is the holding deposit, usually up to $1000, and again please check with your conveyancer or solicitor as this can vary across the different states.

If you plan to sign the contract prior to the cooling off period, ensure that the contract of sale includes the clause “subject to FIRB approval”, otherwise you’ll be breaching the law.

+ Step 7 - Obtain formal mortgage approval

When you’ve found a property to buy, you can then forward the contract of sale to us as your mortgage broker to proceed with the formal approval.

Remember, don’t commit yourself to buy a property until your mortgage is formally approved. If there’s a cooling off period it’s okay to sign the contract, otherwise don’t sign the contract until you know that you can get a loan.

Once you forward the contract of sale us we’ll usually obtain the formal approval within a week.

+ Step 8 - Exchange contracts and pay your deposit

You can exchange your contract after your loan has been formally approved and your solicitor or conveyancer gives you the go ahead. Normally, you’ll need to put down a 10% deposit.

The amount of the deposit is negotiable and differs between the states. Note that once you’ve committed to a property you can’t back out, so please seek legal advice before signing any contracts or paying your deposit.

It’s very important that the contract you’re signing has the clause “subject to FIRB approval” and 30 days must be allowed for a FIRB decision. At this point, it’s vital to check with your conveyancer or solicitor that the clause is stated in such a way so as to ensure that if your FIRB proposal is rejected, you won’t lose your deposit.

+ Step 9 - Final Arrangements

Once you have exchanged the contract, forward a copy of the signed contract to the FIRB for approval.

Your bank would have sent out the loan contract to you after formal approval.

You can ask your mortgage broker to go over it with you, or get help from your conveyancer or solicitor. You have the right to obtain independent legal advice about your loan contract.

To accept the loan offer, sign the appropriate sections and return the loan documents back to the bank.

Do a final inspection on your property the day of settlement. This can be completed by your buyers agent if you’ve hired one.

+ Step 10 - Settlement

Settlement is the term given to when the property actually changes hands and your loan is advanced.

This will be handled by your conveyancer or solicitor in conjunction with your bank and mortgage broker, you don’t need to be there for this to happen.

The title for the property is held by your lender for safe keeping and the keys are available for pick up from the selling real estate agent.

+ FAQS for Non-Resident Mortgages

It’s essential that you research, plan and budget your property purchase in Australia.

+ What are the costs of buying a property?

As a general rule, you should allow roughly 5% of the purchase price for various expenses associated with purchasing a property.

Expenses:

Legal fees – Often $800 to $2,000. Loan establishment fees – Usually $0 to $895 depending on the lender. Stamp duty (state government taxes, often this is the largest expense) – Please refer to our Stamp Duty calculator. Property inspection fees – normally up to $800 in total for a building, pest and strata inspection. Buyers agents fee – Varies depending on the nature of the services provided. Other minor costs – Building insurance, council rates, water rates, adjustments, etc. Refer to your conveyancer or solicitor for an exact breakdown of the costs associated with your real estate purchase.

+ How do I manage the property?

If you’re buying the property as an investment and are intending to rent out your property, you have two options. You can either manage the property yourself, or you can use a property manager.

Professional managing agents will look after every aspect of your tenancy. Their job includes collecting the rent, maintaining financial records, conducting regular property inspections, handling any disputes and arranging all repairs that need to be done.

Most property managers charge a percentage of the weekly rent as management fee. Usually around 5-10%, however this is negotiable.

You should also expect to pay additional one off fees when they find a new tenant.

Last but not least, please make sure that the managing agent you are interested in using is licensed by the Office of Fair Trading (or state equivalent) before you enter into any formal agreement.

Their licence will be displayed in their office or on their website.

+ Will I need to lodge a tax return in Australia?

Yes, you’ll need to lodge a tax return each year in Australia.

This isn’t too difficult to do. Your property manager should keep all of the records for how much rent you received and which expenses you incurred. You can have them transfer these details to your Australian accountant who will then prepare your tax return.

+ Do you need help with a non-resident loan?

Our mortgage brokers specialise in lending to Australian expats, Foreign investors, permanent residents of Australia, foreign citizens living in Australia (temporary residents) and prospective spouses or defacto partners of Australian citizens.

Please fill in our free assessment form or call us on xxxxxx or +61 xxxxxx if you’re outside Australia.

+ What is the Foreign Investment Review Board (FIRB)?

This government department assesses applications from foreigners who would like to invest or buy a home in Australia. If you would like to buy real estate in Australia either to live in or as an investment then you may be required to obtain FIRB approval.

Please see the section which applies to your situation to find out whether you need FIRB approval.

+ Who doesn't need FIRB approval?

Australian citizens If you’re an Australian expat living overseas or Australian Citizen living in Australia:

• You don’t need approval from the FIRB.
• You can buy a new property, existing property or vacant land.
• You can live in the property or it can be an investment.

Permanent resident If you’re a foreign national who has a permanent residency visa:

• You don’t need approval from the FIRB.
• You can buy a new property, existing property or vacant land.
• You can live in the property or it can be an investment.

New Zealand citizen If you’re a New Zealand citizen:

• You don’t need approval from the FIRB.
• You can buy a new property, existing property or vacant land.
• You can live in the property or it can be an investment.

Temporary resident buying with Australian citizen spouse If you’re on a temporary visa such as a spouse visa, 457 work visa, or student visa and are buying the property with your Australian citizen spouse:

• You don’t need FIRB approval if you are buying the property 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.
• You’ll need FIRB approval if you are buying the property together as tenants in common.
• You can buy a new property, existing property or vacant land.
• You can live in the property or it can be an investment.
• Includes de facto partner (both same sex and different sex).

+ Who needs FIRB approval?

You’ll need FIRB approval if you fall into the following categories.

Temporary resident If you’re on a temporary visa such as a spouse visa, 457 work visa or student visa:

• You need approval from the FIRB.
• 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 investor If you’re a foreign investor:

• You need approval from the FIRB.
• 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. Please refer to the government department website for the full details of who is and is not eligible.

+ Buying an investment versus owner occupied

Will it make a difference if you live in the property or not? As a general rule, investment properties are accepted more readily.

If you’re on a temporary visa or work visa then you can:

• Usually buy a new property or an established property.
• Will usually be required to sell your home when you leave Australia. * If you obtain citizenship or permanent residency then you won’t have to sell your property. If you’re a foreign citizen living overseas then you:
• Are unlikely to be allowed to buy a property to live in Australia. This is because you don’t have a valid visa which allows you to stay in Australia.
• If you’ve been granted a temporary residency visa then you may be able to buy a home before you move. If you’re an Australian living overseas you can:
• Buy a property to live in in Australia as long as you can prove to your lender that you’ll be able to afford the debt.
• Either you’ll need to prove that you’ll continue your job in Australia or that you have another income source.

+ Types of properties you can buy

• Investment properties: In most cases the Australian government will approve applications to buy an investment property on the condition that it is a new property. You can often keep an investment property if you leave Australia.
• Home (owner occupied): If you’re buying a home then you may be able to buy an established property (one that wasn’t recently built). You’ll have to sell your property when your visa expires and you leave Australia.
• Vacant land (investment): In most cases the Australian government will approve applications to buy vacant land on the condition that you commence construction of a dwelling on the land within 24 months. You can often keep a property that you build as an investment property if you leave Australia.

+ When is FIRB approval required?

You can’t apply for FIRB “pre-approval” so you should refer to the FIRB guidelines before you begin looking for an Australian property. You can only apply for FIRB approval when you have chosen a specific property to buy.

As long as you’re following the FIRB‘s rules then it is highly likely that your investment will be approved. Once you find a property then you can sign the contract of sale with a condition that allows you to back out of the purchase if FIRB approval is not granted.

However, you can get pre-approval for the mortgage itself before you find a property. To find out more refer to our applying for a loan section.

+ Why does the government monitor foreign investment?

The government monitors foreign investment to ensure that the investment will benefit Australia. In particular, foreign investors are limited to investing in “new” properties so that their investment adds to the existing housing stock in Australia. This is to prevent speculation which has little benefit for the Australian economy and that could result in escalating housing prices.

Did you know that the government approves the vast majority of FIRB approval applications? If you meet the guidelines provided on their website then there are very few reasons that could cause your application to be declined.

+ How much can you borrow?

The amount that you can borrow depends on the type of visa that you hold and the way that the lender you’re applying with views your visa status:

• 80% of the property value: All temporary visa holders can apply for a mortgage for up to 80% of the property value. In many cases, these applications are from international students.
• 90% of the property value: We know a lender that can consider a loan for up to 90% of the property value as long as you have stable employment and are in a strong financial position.
• 95% of the property value: If you’re married to an Australian citizen or permanent resident and on an Interdependency Visa (subclass 310/110 and 826/814) or spouse visa/partner visa (subclass 309/100 and 820/801), then you may be able to borrow up to 95% of the property value. Did you know that the services of a mortgage broker in Australia are usually free?

+ Which temporary residents 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). 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).

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 unless you are married to an Australian Citizen:

• Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457, loans available to 95% of the property value as special exemption to normal bank criteria).
• 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).
• 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).
• Special Program Visa (Subclass 416).
• 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).
• Student Guardian Visa (Subclass 580).
• 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).

+ Are you a student visa holder or an international student?

Most banks will allow student visa holders to borrow funds to purchase a property in Australia.

The Foreign Investment Review Board (FIRB) doesn’t restrict students from buying a home or investment property as long as they meet standard FIRB criteria.

However, your ability to get approval for a loan largely depends on whether or not you have a stable job and a solid income. If you’re working, most banks will lend you 80% of the property value.

If you’re not working, then your parents may be able to purchase the house for you. Please see our student visa mortgage page for more information.

+ Is Australian Government approval required?

The Foreign Investment Review Board (FIRB) may need to approve your purchase. Please refer to our FIRB approval page for more information and specific guidelines.

+ Are first home benefits available?

Unfortunately, as a temporary resident you can’t apply for the first home owners grant and other government benefits.

If you are on a spouse visa / partner visa and are buying with your spouse who’s either an Australian citizen or permanent resident then you can qualify for the First Home Owners Grant (FHOG).

You must buy the property together as ‘joint tenants’ not as ‘tenants in common’. Please refer to your conveyancer for more information.

Other Australian government benefits such as welfare and Medicare (public health cover) aren’t available to temporary residence visa holders.

+ Are you a temporary resident with a foreign income?

It’s quite common for temporary residents of Australia to have either a business, investment property or pension that provides them with an income from outside of Australia. They often use this income to help them to pay their mortgage in Australia.

Not every lender will accept your foreign income in their assessment! Others will only accept your income if you’re an Australian resident for tax purposes and have declared your foreign income on your Australian tax returns.

However, some lenders have a simplified income verification process and can accept foreign tax returns, foreign pension statements or rental income receipts, as evidence of your income. They’ll usually use 80% of this income in their assessment to allow for exchange rate fluctuations.

+ How Much Can I Borrow?

The amount that you can borrow depends on your situation, your employment history and your marital status:

• 80% of the property value: Anyone who’s in Australia on a work visa can borrow 80% with select banks who’re happy to work with foreign citizens living in Australia.
• 95% of the property value: Mortgages for up to 95% of the property value are available as a special exception to normal bank criteria.
• Medical professionals: Special loan packages are available on a case by case basis.

Did you know that in Australia, mortgage brokers don’t charge any fees for most loans?

Please call us on +61 3 9040 2288 or fill in our free assessment form to have an obligation free discussion with one of our mortgage brokers who specialises in lending to foreign citizens living in Australia.

+ Which work visa types will the banks lend to?

The Australian Government doesn’t restrict particular visa types when it comes to borrowing money however Australian banks and other lenders tend to prefer the below working visa types:

• Investor Retirement Visa (Subclass 405)
• Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457)
• Foreign Government Agency Visa (Subclass 415)
• Domestic Workers Visa (Subclass 426)
• Diplomats Visa (Subclass 995)
• Medical Practitioner (Temporary) Visa (Subclass 422)

In particular, we receive many applications from Temporary Business (long stay) 457 visa holders who have been sponsored by their employer and are looking to apply for a loan to buy a property in Australia.

+ Is Australian government approval required?

The Australian government has recently changed and then rolled back our foreign investment laws but FIRB approval may still be required depending on your situation.

If you’re buying the property with a spouse who’s an Australian citizen and the legal ownership structure is joint tenants, then FIRB approval isn’t necessary.

You can also buy an investment property and, if it’s a newly-built dwelling, you won’t usually be required to sell the property when you leave Australia.

Many people who buy a home here eventually decide to apply for permanent residency and don’t end up selling the home that they purchased while they were on their working visa.

Don’t worry, getting approval from the government isn’t too difficult as long as you follow their foreign investment rules.

+Are First Home Benefits available?

No, you cannot apply for the First Home Owners Grant (FHOG) and other government benefits unless you’re buying jointly with an Australian citizen or permanent resident.

+ How much can you borrow?

Most banks and other lenders only lend 80% of the purchase price due to strict Lenders Mortgage Insurer (LMI) policies.

However, some banks will allow you to borrow up to 95% of the purchase price! To qualify to borrow 95% of the purchase price, you must be in a strong financial position and have a stable relationship.

+ What are the lending criteria?

Our most competitive lenders have the following policies:

• You cannot be buying separately: The person on the temporary spouse visa must be buying the property with an Australian citizen. Please see our temporary resident mortgage page if you are not buying a property together with your partner.
• De facto relationships are accepted: You do not have to be married. The banks accept people on a spouse visa that are in a de facto relationship, including same sex relationships.
• The relationship must be legitimate and continuing: Most lenders take a common sense approach in looking at how long you have been together and may reject your application if you have not been with your partner for a significant period of time.
• Legal structure of ownership: Some lenders require couples to purchase a property as ‘joint tenants,’ not ‘tenants in common.’ However not all lenders have this policy and may allow other legal ownership structures.

You must be buying the property with an Australian citizen and you must be in a relationship with them. If you do not meet the above lending criteria your mortgage will be limited to 80% of the property value.

It is also important that you have a good credit history, a solid income and a stable employment situation. These factors decrease the risk to the bank in lending to you.

+ Can I quality for a mortgage on a provisional spouse visa?

Most lenders have very strict policy when it comes to individuals on a temporary spouse visa.

This is because they have not yet been granted permanent entry into Australia and there is a chance that their application for permanent residency will be declined, resulting in their departure from Australia.

If this happens, they will no longer be in a position to repay the loan. Accordingly, lenders consider these borrowers as a high risk.

+ Which spouse visas are accepted?

Most banks accept the following spousal visa subclasses for those who are married or in a de facto relationship with an Australian citizen or permanent resident.

• Offshore Partner Visa: Temporary and Permanent – (Subclass 309/100).
• Onshore Partner Visa: Temporary and Permanent – (Subclass 820/801).
• Other visa types accepted: Spouses that are on another type of temporary visa are also acceptable.

+ Am I eligible for any government grants?

Occasionally the Australian government provides incentives to Australian citizens and permanent residents who are buying a new property, building a property or buying their first home.

If you are buying with your spouse or partner, whether married or de facto, you may also be eligible for certain government grants.

+ Will I need FIRB Approval?

If you are purchasing the property with your Australian citizen spouse, as ‘joint tenants’, then you will not be required to seek Foreign Investment Review Board (FIRB) approval.

That is the only exemption available for temporary residents.

FIRB approval is usually an uncomplicated and fast process and approval is usually granted within two weeks.

+ How will the banks view my relationship?

Being on a temporary spouse visa is not an issue for most banks, as long as the circumstances of your relationship and its duration, make it likely that you will stay together.

For example: a husband from a foreign country and his wife who is an Australian citizen apply for a home loan. Their relationship has only been going for one month.

The wife is not working, so the banks are relying on her spouse to prove that they can afford the debt. In this situation, it is unlikely that the banks will approve their application for a home loan.

However, if they had been together for a longer period of time or if they had children together then lenders would see this as a stable relationship and normal lending criteria would apply.