Expatriate Australians or people from overseas that are planning to work in Australia can purchase real estate – either a home or an investment property in Australia.
The type of home loan, interest rate & lenders that you qualify with will predominantly be determined by your residency status. In addition to this lenders will also carry out a normal assessment of your situation including your income, employment stability, credit history (Australian history only), asset position and savings history.
Which visa holders can qualify for a home loan in Australia?
Australian permanent residents (PR) – Holders of all types of visas are eligible for home loans. The government treats permanent residents much like Australian citizens when it comes to purchasing property. Banks will generally lend permanent residents up to 95 percent of the property value unless the resident is living outside of Australia in which case they can usually obtain 80 percent of the value.
Foreign citizens on a 457 visa – Australia’s Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457) is also known as the 457 visa. The 457 is the most common type of working visa for foreigners living in Australia. Holders of this type of visa can normally obtain home loans for up to 80 percent of the property value. Loans for up to 90 percent of the value are available for people who have saved part of the deposit and have worked in Australia for at least 12 months.
Foreign citizens on a temporary or spouse visa – Many residents in Australia are spouses of an Australian citizen and have an Interdependency Visa (subclass 310/110 and 826/814) or a Spouse Visa (subclass 309/100 and 820/801). Persons with either type of visa can normally acquire loans up to 95 percent of the property value. Other temporary visa holders can generally apply for mortgage loans up to 80 percent of the property value.
The Home Loan Experts is a specialist mortgage broker in Australia that has extensive experience and a proven track record in helping expatriates to obtain home loans. They work with more than 40 lenders including major Australian banks and are full members of the MFAA & COSL, ensuring , professional and ethical lending practises. You can find out more about their services on their non-resident mortgage website.
Full list of acceptable visas
In addition to visas for spouses and partners, other types of temporary visas are available for international students, athletes, persons visiting for medical treatment and other temporary visitors.
The following is a list of temporary visas that will normally qualify for a mortgage for up to 80 percent of the property value.
- Business Visitors Visa (Subclass 456)
- Working Holiday Visa (Subclass 417)
- Bridging Visas from A to E
- Entertainment Visa (Subclass 420)
- Contributory Temporary Parent Visa (Subclass 173)
- Contributory Temporary Aged Parent Visa (Subclass 884)
- Visiting Academics Visa (Subclass 419)
- Sport Visa (Subclass 421)
- Skilled Exchange Visa (Subclass 411)
- Film, Media, Actors and Support Staff, Photographers and Journalists Visa (Subclass 423)
- Emergency Visas (Subclasses 302 & 303)
- Long Validity Business ETA Visas (Subclass 956)
- Holiday and Visiting Visas (Subclass 976)
- Medical Treatment Visa
- New Zealand Citizen’s Family Members Visa (Subclass 461)
- Religious Worker Visa (Subclass 428)
- Special Program Visa (Subclass 416)
- Sponsored Family Visitors Visa (Subclass 679)
- Special Category Visa (Subclass 444)
- Student Visa (Subclass 572, 573, 574, 575 & 576)
- Student Guardian Visa (Subclass 580)
- Short Validity Business ETA Visas (Subclass 977)
The types of working visas that banks will normally accept for mortgage loans, possibly for up to 90 percent of the property value, are:
- Foreign Government Agency Visa (Subclass 415)
- Diplomats Visa (Subclass 995)
- Domestic Workers Visa (Subclass 426)
- Investor Retirement Visa (Subclass 405)
- Medical Practitioner (Temporary) Visa (Subclass 422)
- Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457)
Is approval required from the government?
For those with working visas, approval from Foreign Investment Review Board (FIRB) may be required depending on the specific circumstances of the visa holder. Generally, so long as you sell the property once you leave Australia, the government will not interfere with your real estate purchases.
If you are buying an investment property and you are not a PR holder or Australian Citizen then you may be restricted to buying a new property or building a new property. This is a regulation that has been put in place to limit speculation from foreign investors from inflating the value of Australian houses.
Foreign citizens with temporary visas are required to obtain approval from the Foreign Investment Review Board if they are not staying in the country for more than 12 months. Generally, if you buy a home to live in then you must sell the property once you leave Australia. Many home owners eventually apply for permanent residency and hold on to their property.
Foreign citizens are not eligible for first home owners grant or other benefits unless they are purchasing the property jointly with an Australian citizen. If they buy with an Australian Citizen or PR holder then FIRB approval is not normally required.
In many cases, foreign expats can obtain loans that pay higher percentages of the property value by saving money for the mortgage deposit and by waiting until they have lived in the country for more than 12 months.
For information on getting a loan please refer to a specialise mortgage broker such as the Home Loan Experts, who can help you apply for an Australian expatriate loan, They can lead you through the entire process and optimize your application to improve your chances of getting the best loan.
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