Buying a home is an exciting milestone, but securing a mortgage can come with extra considerations if you're on a visa in Australia. The good news is that many visa holders are eligible for home loans. However, the process varies depending on your visa type and the lender’s policies.
To provide clarity, Jamil Musharbash, director at Fastlink Finance, based in Sydney, has shared insights into mortgage eligibility for visa holders.
Who Can Apply for a Mortgage?
1. Permanent Resident (PR) Visa Holders
If you hold a permanent visa such as Subclass 186, 189, 190, 100, or 801, you follow the same lending policies as Australian citizens. This means there are no additional restrictions, and you can access the same loan products as citizens.
2. Temporary Visa Holders
Many temporary visa holders can apply for a mortgage, though eligibility depends on their specific visa type. The following visas are generally accepted by lenders:
- Subclass 160, 161, 162, 163, 165, 188, 489, 491, 494, and 482 (Certain streams only)
- Subclass 820 and 309, provided the applicant is purchasing jointly with an Australian citizen, permanent resident, or eligible New Zealand citizen.
3. Bank-Specific Lending Criteria
For those on temporary visas, lending criteria can vary significantly between banks. Some lenders may require a larger deposit (typically around 20% or more), while others may offer loans with a lower deposit if the applicant meets certain income and employment criteria.
Given that lending policies are updated frequently, it’s essential to check with an experienced mortgage broker, like Jamil Musharbash from Fastlink Finance, to assess current options.
Additional Considerations for Visa Holders
Foreign Investment Review Board (FIRB) Approval
Some temporary visa holders may need approval from the Foreign Investment Review Board (FIRB) before purchasing property in Australia. Before proceeding, confirm this requirement with the relevant authorities. More information can be found on the FIRB website.
Stamp Duty and Surcharge Fees
One of the biggest financial challenges for temporary visa holders is the potential for higher stamp duty. In some states, visa holders must pay a surcharge in addition to standard stamp duty fees. For example, in New South Wales:
- A permanent resident or citizen purchasing a $1M property typically pays around $40,000 in stamp duty.
- A temporary visa holder may pay approximately $130,000 due to surcharge purchase duty.
For up-to-date figures and potential exemptions, check with your state’s revenue office. NSW residents can refer to the NSW Office of State Revenue for more details.
Final Thoughts
While securing a mortgage as a visa holder requires additional planning, it is certainly possible with the right approach. If you’re unsure about where you stand, working with an experienced mortgage broker can make all the difference.
For expert advice, reach out to Jamil Musharbash at Fastlink Finance Pty Ltd via www.fastlinkfinance.com.au to explore your home loan options and make your property ownership goals a reality.
About Rocket & Ash Immigration Law
At Rocket & Ash Immigration Law, we specialise in helping partners, graduates, and professionals navigate the complexities of Australian immigration law. Our expertise in visa applications ensures that you receive tailored advice and support throughout your immigration journey.
If you require assistance with your Partner visa application or have any other immigration-related queries, our experienced team can help.
Please book a free 15-minute discussion with our team if you have further questions.
Written by Ines Jusufspahic, LPN: 5511366
This article does not constitute legal/financial advice or create an attorney-client relationship. For up-to-date information, please consult an immigration professional. Furthermore, please note that we do not receive any benefit or commission for the referral to Fast Finance Pty Ltd.