- Can I buy a house in Australia on 482 Visa?
You can buy a property in Australia on a non-resident visa, but you must meet the Department of Home Affairs’ criteria and requirements, This includes getting a FIRB (Foreign Investment Review Board) approval, and the home you purchase must be your primary residence. Other options include a 489 visa home loan, a 491 visa home loan, and more.
- Can I get a home loan on a 482?
Home loans are available to those on 482 Temporary Skilled Visa. You can borrow up to 95%.
- 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.