Non-resident Home Loans – Australian Mortgages for Non-residents

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Non-residents can be either:

 

    • Australian citizens or Australian permanent residents living overseas; or
    • Citizens of foreign countries that are not permanent residents in Australia.

Yes, non-residents can buy property in Australia.

 

However, before purchasing any property in Australia, foreigners must have approval from the Foreign Investment Review Board (FIRB). You may not be able to purchase certain types of property. For example you may only be able to purchase new property but not established or used property.

 

See the guide for foreigners buying property in Australia.

 

Note that commencing 1 Dec 2015 there is a $5,000 application fee when applying to the Foreign Investment Review Board to purchase residential property costing less than $1 million and $10,000 for properties greater than $1 million and each million after.

Yes, non-residents can get an investment loan to buy property in Australia.

 

You may only be able to get a non-resident home loan from certain lenders depending on if you are:

 

As a non-resident, you could get a non-resident investment loan from an Australian lender for the purchase of Australian property. Foreign nationals, Australian expats and temporary residents are all able to purchase Australian property and get a mortgage from an Australian lender. Your circumstances will determine the:

 

    • type of property you can purchase (new, existing);
    • lenders that will approve your mortgage application;
    • types of mortgage you can get (investment property loan); and
    • conditions of the investment loan.

This will depend on how much you are borrowing and the type of non-resident you are.

 

If you are a foreign citizen living overseas you may be able to borrow up to 80% 60% of the property value from some lenders. NOTE: The non-resident lending environment has changed, currently the maximum loan to value ratio is 60% for foreign non-residents.

 

If you are on a temporary 457 visa you can still borrow up to 90% of the property value.

 

If you are a non-resident buying with your partner that is a permanent resident or Australian citizen you may be able to borrow up to 95% of the property value. This may depend on where the majority of income comes from.

 

You will also need to pay for the closing costs. These are Stamp duty, conveyancing fees, home insurance, and some other fees and taxes. Stamp duty varies between states and territories. The cost of conveyancing will depend on who you use and how much they charge. These closing costs can cost between 3-5% of the property value.

 

If you are borrowing with a permanent resident or Australian citizen or you are on a 457 visa and you want to borrow more than 80% of the property value, in addition to the closing costs (3-5% of the property value) you will also need to pay for lenders mortgage insurance which adds additional cost (0.5 to 5%) depending on the size of the loan and the loan to value ratio.

In most cases, if you are highly eligible for a mortgage, any qualified mortgage broker can help you get your mortgage approved even if you are a non-resident.

The Australian home loan and property investment loan market is complex. There is a multitude of different home loans and other finance products available on the market today and lenders are constantly updating and changing their products.

 

This means that if you are not constantly analyzing and reviewing what is available on the market you are unlikely to be able to find the most suitable loan products for you. Some of the best options may be found in lenders that you did not know existed.

 

When dealing with the amounts of money involved in something like the purchase of a property, seemingly small differences can amount to thousands of dollars over the life of the loan. This is where a finance professional (mortgage broker) can greatly assist you.

 

Speak with a mortgage broker that knows the lenders that offer property loans to non-residents, their lending criteria and which ones have the best rates and loan packages. Contact a highly trusted broker, specifically a non-resident specialist mortgage broker, for a free consultation to help you with your desired loans.

Yes, some lenders will approve construction loans for non-residents if they meet all of their other criteria. You must also use a fixed-price contract with a licensed builder and have all of the relevant building, planning and development approvals. Contact a finance broker in your planning stage to go through your options.

 

Do you want to know about the construction loan process in Australia? Find out everything that you need to know about construction loans in Australia.

 

CONSTRUCTION LOANS IN AUSTRALIA

No, if you are a non-resident, you cannot get the Government First Home Owners Grant unless you are buying the real estate with your spouse who is a permanent resident or Australian citizen and it is your first home. See more details here about the Government First Home Owners Grant.

Are you a non-resident and you need help with your Australian home loan?

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