Key Takeaways
- Non-resident home loans are designed to help those who don’t live permanently in Australia or those who aren’t Australian citizens to buy properties within the country.
- Temporary residents with work, student, and partner visas as well as foreign investors, expatriates, New Zealand citizens and foreign citizens with Australian spouses are eligible to apply for non-resident home loans.
- People who want to apply for non-resident home loans must be over 18 and have a visa that lets them stay in the country for a certain amount of time. They need to have a steady job, a good credit history, an Australian bank account, and proof of income.
- Non-residents will also need to put down a bigger deposit. The Foreign Investment Review Board (FIRB) must also approve temporary residents and investors.
- Before applying for a non-resident home loan, applicants need to know what their visa restrictions are and how they can affect their eligibility. They need to set up a financial presence in Australia and make sure they have the right paperwork and a big deposit.
Australia’s property market is attractive for many reasons, including its stability, growth potential, and the lifestyle it offers. However, buying property in the country isn’t as straightforward if you’re a non-resident. This guide will help overseas buyers learn all about non-resident home loans and how to get them.
What are Non-Resident Home Loans?
Non-resident loans are special types of loans that let people who don’t live in Australia permanently or who aren’t Australian citizens buy property within the country. People from all over the world can get these loans, including temporary residents, foreign investors, and anyone else who thinks owning property in Australia is a good idea.
Who Can Obtain Non-Resident Loans?
- Temporary Residents: People who are living in Australia on a temporary visa, such as a work visa, student visa, or partner visa.
- Foreign Investors: People who live outside of Australia and want to buy property in the country for investment. This group may have to meet stricter requirements and get permission from the Foreign Investment Review Board (FIRB).
- Expatriates: Australians who live and work abroad but want to buy property back home. Even though they are not technically non-residents, lenders treat them the same way because they make money outside of the country.
- New Zealand Citizens: Often enjoy privileges similar to Australian permanent residents, including the ability to buy property and get access to home loans, due to the close relationship between Australia and New Zealand.
- Foreign Citizens with Australian Spouses: Mixed nationality couples where one partner is an Australian citizen or permanent resident may have access to home loans, potentially under better conditions.
Eligibility Requirements for Non-Resident Loans
While eligibility criteria vary, non-resident lenders generally focus their assessment around:
- Age Requirement: People who want to get a non-resident loan must be at least 18 years old. Some lenders may also have other age limits, especially for older applicants.
- Visa Status: Most lenders want non-residents to have a visa that lets them stay in Australia for a set amount of time. The kind of visa you have can change the terms that lenders are willing to give you. People often think more highly of Permanent Resident (PR) visas and some temporary visas, such as work or student visas.
- Income Verification: If you live outside of Australia and make money there, it can be harder to prove your income. Lenders will check to see if your income is stable and consistent, and they may need to change it into Australian dollars for the evaluation.
- Employment Status: To get approval, you need to have a steady job. Lenders want to see that you’ve been working at your current job for at least three to six months, or that you’ve been in the same field for a longer time. If you work outside of Australia, your job’s stability and your employer’s reputation can be looked into.
- Deposit Requirements: Because they are seen as riskier, non-residents usually have to put down more money, often 30–40% of the property’s purchase price. Depending on your visa type and how you make money, some lenders may ask for even more.
- Australian Bank Account: Having an Australian bank account is necessary for loan repayments.
- Credit History: If you already have a credit history in Australia, it will be looked at. If not, lenders may look at your financial history from your home country or look for other proof that you are financially responsible.
- FIRB Approval: The Foreign Investment Review Board (FIRB) makes rules for temporary residents and foreign investors. If you apply with your Australian national spouse, though, you don’t have to get the FIRB’s approval. You can send in your application through the Australian Tax Office’s website.
Tips for Qualifying
- Know the Limits of Your Visa: Different visas have different rules about owning property and borrowing money in Australia. Make sure you know exactly what your visa is and how it affects your ability to get a loan.
- Establish a Financial Presence in Australia: Open an Australian bank account and, if you can, build a credit history in Australia. This will make you more trustworthy to lenders.
- Get a Stable Job: It’s very important to have a stable job, especially if you’re getting paid in a foreign currency. Lenders will want to see that you are stable and dependable.
- Make a Big Deposit: The more you can put down as a deposit, the less risky it is for the lender. If you’re not a resident, you might have to put down a bigger deposit, usually 30% or more of the property’s value.
- Gather Documentation: Collect all of your financial documents, such as bank statements, proof of income, tax returns, and any other documents that show you are financially stable. It may be harder to meet the requirements for income from abroad.
- Get Pre-Approval: Getting pre-approved for a loan can help you figure out how much you can borrow and show sellers that you’re a serious buyer. Once you find a property, it can also help speed things up.
- Know the FIRB Requirements: If you need approval from the Foreign Investment Review Board (FIRB) to buy property, make sure you know how the process works and how much it will cost.
- Learn About the Market: Knowing about the Australian property market, such as prices, trends, and areas of interest, can help you make smart choices and find a property that will make you money.
- Plan for the Future: Think about how your situation might change in the future and how that might affect your loan. For instance, if your visa status changes, it could make it harder for you to pay back the loan or make you ineligible for refinancing.
- Talk to a Loan Expert: A loan expert who knows a lot about non-resident loans can give you great advice, help you through the complicated application process, and help you find a lender that meets your needs.
Looking for Residential Properties in Australia?
If you’re a non-resident interested in securing a property in Australia, you can seek help from home-grown loan experts who understand the workings of the country’s housing market. We can help you every step of the way, from loan pre-approval to picking up the keys to your new property. Contact us today to learn more.
Disclaimer: Loans and the benefits associated with them are only available to those who have been approved. The information provided on this page is general and does not consider your individual circumstances. It is not meant to serve as a substitute for professional advice, and you should not rely on it for any decisions. Always consult with a professional regarding finance, tax, and accounting matters before making any choices or taking action.
