Home Loans for Temporary Visa Holders: 90% LVR Options
- Fast turnaround time
- Guide you from preapproval to settlement
- Borrow up to 95% of the purchase price
- No cost, no obligation service
Why Choose Home Loans for Temporary Visa Holders?
Temporary visa holders can access tailored home loans for temporary visa holders despite visa-related challenges. Here’s why we stand out:
- 90% LVR Options: Borrow up to 90% of the property value with competitive LMI terms.
- Low Rates: Access competitive interest rates tailored for visa holders.
- Higher Borrowing Power: Qualify for loans up to $4 million for your temporary visa home loan.
- Expert Guidance: Our brokers navigate visa, FIRB, and stamp duty complexities for 482, 457, and other visas
Eligibility for Temporary Visa Home Loans
To qualify for a home loans for temporary visa holders, you need:
- Visa Status: Hold an eligible temporary visa (check at Home Affairs). Common visa types include:
- Partner/Spouse Visas:
- Skill Shortage Visas: Subclass 482 / 457 / 489 / 491 / 494
- Business/Investor Visas:
- Subclass 188 (Business Innovation and Investment visa): Temporary phase for business owners or investors.
- Graduate Visas:
- Subclass 485 (Temporary Graduate visa): For recent graduates of Australian institutions.
- Employment: Full-time work in Australia for at least 6 months.
- Credit History: Good credit with no defaults.
- Deposit: Minimum 10% deposit (LMI required for 90% LVR).
- Self-employed visa holders need 2 years of financials.
What Can Temporary Visa Holders Buy?
Under FIRB guidelines, temporary visa holders are restricted to purchasing:
- Vacant Land: For building a new residential dwelling, subject to FIRB approval and development conditions (see ATO property restrictions).
- Brand New Properties: Includes off-the-plan apartments or newly built homes not previously occupied.
Existing properties are generally not permitted unless specific exemptions apply (e.g., joint purchase with an Australian citizen spouse). Our team ensures your Temporary Visa Home Loan aligns with these rules.
FIRB Approval for Temporary Visa Holders
Temporary visa holders must obtain Foreign Investment Review Board (FIRB) approval to purchase property, limited to vacant land or brand new properties. Key points:
- FIRB Fees: Start at $14,100 for properties up to $1M (see FIRB fees for details), increasing for higher values (e.g., $28,200 for $2M).
- Process: Apply via FIRB, typically taking 30–90 days for approval.
We assist with navigating FIRB requirements to ensure compliance for your Visa Holder Mortgage.
Foreign Buyer Stamp Duty Costs for Temporary Visa Holders
Temporary visa holders are subject to additional stamp duty surcharges as foreign buyers. Rates vary by state and territory:
- NSW: 8% surcharge on top of standard stamp duty (e.g., $40,000 extra on a $500,000 property—see Revenue NSW).
- VIC: 8% surcharge (e.g., $40,000 extra on a $500,000 property—see SRO VIC).
- QLD: 7% surcharge (e.g., $35,000 extra on a $500,000 property—see QLD Government).
- SA: 7% surcharge (e.g., $35,000 extra on a $500,000 property—see RevenueSA).
- WA: 7% surcharge (e.g., $35,000 extra on a $500,000 property—see WA Finance).
- TAS: 8% surcharge (e.g., $40,000 extra on a $500,000 property—see SRO TAS).
- ACT: No surcharge for foreign buyers (see ACT Revenue).
- NT: No surcharge for foreign buyers (see NT Treasury).
Our team helps you budget for these costs when applying for a home loan
How to Apply for Your Visa Holder Mortgage
- Check Visa and FIRB Requirements: Confirm that your visa type is eligible for a home loan. If required, apply for Foreign Investment Review Board (FIRB) approval before purchasing a property.
Gather Documentation: You’ll need to provide documentation, including proof of visa status, income verification, tax returns, and any additional evidence of assets or savings. If you’re earning foreign income, you may also need proof of exchange rate stability.
Find the Right Lender: Not all lenders offer loans to temporary visa holders. Working with a mortgage broker who specializes in non-resident loans can help you find the best lender for your situation.
Submit Pre-Approval Application: Apply for pre-approval to determine how much you can borrow. This will give you a better idea of your budget before you start house hunting.
Formal Loan Application: Once you’ve found a property, submit your formal loan application, including all necessary documentation. The lender will assess your eligibility and risk before granting final approval.
Questions we may ask Temporary Visa Holders for their Home Loan
- What type of Visa are you on? What is the subclass?
- How much do you want to buy for?
- How much savings do you have?
- What do you do for work and what is your income?
- Do you have any financial commitments or liabilities?
- Living expenses
If you are on any of the above, we can assist you with your home loan. Apart from being on an eligible visa, there are also a number of criteria you have to meet to get a loan. We will assess your eligibility.
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FAQs – Home Loans for Temporary Visa Holders and Expat Loans
- Can people access home loans for Australian property if they don’t have citizenship or permanent residency
Yes, home loans for Australian property are available to those that don’t have citizenship or permanent residency status.
- Do you find temporary visa holders or non-residents are often unaware that they can access home loans?
Most temporary visa holders or non-residents are unaware of the costs associated with buying a property. The two additional costs are FIRB (Foreign Investment Review Board) application fee and foreign buyer surcharge/stamp duty.
Fees for FIRB can be found here.
Foreign Buyer surcharge/stamp duty is state dependent and is percentage of the purchase price. It is 8% in Victoria and NSW, and 7% in other states.
There is no stamp duty surcharge for properties in ACT and NT.
- Are there cases in which banks or lenders will limit a person’s borrowing capacity due to their visa? By how much typically?
The lenders do not treat or limit a person’s borrowing capacity if they are on a temporary visa. As long as they are living and working in Australia, earning AUD, they will treat them the same as an Australian citizen or Permanent Resident.
The only time the banks will limit a person’s borrowing capacity is when they are earning foreign income. They will typically shade their income by 20%. In saying that, some lenders will shade by 10%, whereas others will shade by 40%. It really depends on the lenders policies.
Their policy will also determine whether Australian tax margins are used or whether the local tax rate is use. For example, tax rate in Singapore, UAE and Switzerland is much lower than Australia. Some lenders know this and will allow the local tax rate to be used.
- Are there any other factors that often come as a surprise to people purchasing in Australia as an expat or temporary visa holder
With Temporary Visa Holders in Australia, they will be treated the same as citizens and PR.
For expats, the factors that may come into play are living expenses such as rent. Rent in some countries such as Switzerland and HK are very expensive. If the rent is not covered by the employer, this usually makes it very hard for the client, even they are on strong income.
Credt card limits may also impact their borrowming limit. Most expats also have credit cards with very high limits. This is normal for Middle Eastern countries, Singapore and Hong Kong. The credit card limit can have major impact on a client’s borrowing capacity, as the lenders treat the limit as the balance.
- Are there any types of visas that banks tend to view more favourably?
Lenders will to lend to those that have a high likelihood of staying in Australia and stability in income. These include Skilled, Partner and Business/Investment Visa Holders. Our website highlight the common visas that lenders will lend to. In saying that, I do have a few lenders that will lend to those with Graduate Visas or parents that are overseas buying a property for their children to live in while they study here.
- What advice would you give a person hoping to take out a home loan for Australian property if they aren’t a citizen or permanent resident?
The key thing is to know how much deposit they need. As discussed previously, they need extra funds to cover FIRB and Foreign Buyer surcharge. Depending on their visas, the lenders will lend up to 95%. However, in some cases, the maximum loan is at 80%. On top of the fees, they also need 20% deposit as well as funds to cover legal fees and incidentals.
- Do some banks view non-citizens or non-residents more favourably than others? If so, could you provide a few as an example?
The banks do not typically view any non-citizen/residents more favourably than others. They do however, have certain countries they won’t lend to. Those mainly consist of countries that is politically unstable or currently involved in war. The lenders also have a list of currencies that are acceptable to them. I suppose this is the way that are more favourable to some countries than others, by accepting their currency when applying for a loan.
- Are there any other misconceptions that you see commonly, or myths you’d like to debunk?
The main misconception is that people on are not Australian or are non-Residents are treated differently and pay a higher rate. Temporary visa holders, PR and Australian expats get the same rates as local purchases. The ones that will attract higher rates are non-Residents and foreign income self-employed. This category will fall under the specialty lenders and may have to pay additional risk fee and higher interest rates.
Being In the Navy and away from home a lot I found it hard to find time to sought my loan out with the bank but working with Tom I found the process really easy and in the future when it’s time to go for another loan I will being looking up Tom again to use his expertise.
Anthony
Working with Michael as our mortgage broker was an absolute pleasure. He was extremely knowledgeable and went above and beyond to make sure we received the best mortgage for our needs. Michael’s communication was exceptional, keeping us informed and updated throughout the entire process. He made what can be a stressful time, a breeze.
With me being on a visa, I was told it was impossible for my partner and I to get a loan. Michael came in and told us he would be able to get our loan approved despite my visa status and safe to say he did not disappoint!
We highly recommend Michael for anyone in need of a mortgage broker. Thank you, Michael!
Komal
After having two other brokers tell us that we had to be in Australia with proof of payslips to buy a house, we had lost hope of buying from NZ before moving over. Thankfully we found Professional Home Loans online! Michael has been amazing from start to finish. His replies to my emails were always prompt and he managed to sort an issue with our paperwork before settlement. We are very grateful for Michael’s hard work. Without it we likely would have given up on our dream of moving to WA as it would have been tricky getting a rental with pets, especially during a rental crisis.
Melanie Downers
We had a very complex mortgage transaction to negotiate as we live overseas and did not have the 20% deposit. However, Michael Nguyen from MAP was instrumental in helping us purchase our first home. We would genuinely recommend Michael to anyone looking to purchase a house. Thanks Michael.
Robert Smith
Michael is the best broker out there. Besides his credit knowledge, he was also very attentive to his clients. He makes sure that all our questions are answered and is always looking after you. Responses within minutes too if you ever reach out. People always talk about how stressful it is to apply for a home loan. As a temporary resident in Australia, Michael made the application process the easiest thing we have ever done. Fun fact! I was so amused when Michael was guiding our solicitor during the process, that’s how skilled and knowledgeable he is about his clients’ background and what they’re entitled to when it comes to purchasing a property. Thank you Michael and Professional Home Loans for the best experience!
Nicoleen Pitargue