If you are a 491 Visa Holder, we can help you with a home loan
- Fast turnaround time
- Guide you from preapproval to settlement
- Borrow up to 95% of the purchase price
- No cost, no obligation service
491 Visa Home Loan
Australia is a large country in size with a relatively small population. To overcome skill shortages and encourage business investment, the Government offers these individuals the to opportunity live and work in Australia. Many of these individuals discover that Australia is a great country to live in and would like to settle down and buy a home. Professional Home Loans can assist them with their goals.
What is the 491 Visa?
Understanding the 491 Visa and Its Implications on Property Ownership
The 491 visa is a temporary visa granted to skilled workers from overseas who are sponsored by a state or territory government, as per the regulations of the Australian government. It is important to note that 491 visa holders are eligible to purchase residential property in Australia, provided they fulfil the necessary criteria and secure approval from the Foreign Investment Review Board (FIRB).
Eligibility Criteria for 491 Visa Holders to Purchase Residential Property
To successfully invest in Australian property, 491 visa holders must fulfill certain criteria, such as obtaining FIRB approval, selecting an appropriate type of property, and meeting the financial requirements.
FIRB Approval Process
The Foreign Investment Review Board approval process is a vital step for foreign investors to fulfil prior to purchasing residential real estate in Australia.
Property Types
When it comes to property types, Australia classifies residential properties as either “new dwellings” or “established dwellings”. For 491 visa holders, the eligibility to purchase properties differs based on this classification.
Financing Options for 491 Visa Holders
Navigating the world of financing options can be challenging for 491 visa holders, as their visa type, occupation, and financial situation can significantly impact the available options.
Borrowing Limits
The borrowing limits for 491 visa holders play a crucial role in determining their ability to purchase residential property in Australia.
Lender Preferences
Lender preferences for 491 visa holders can vary significantly when it comes to purchasing residential property in Australia. Some lenders may be willing to lend up to 70% to 95% of the property value, but they may impose additional fees and higher interest rates than Australian citizens or permanent residents. On the other hand, some lenders may assess the mortgage application of 491 visa holders who are married to or in a relationship with an Australian citizen, New Zealand citizen or Australian permanent resident as if they were Australian citizens, thus offering more favorable terms.
Government Benefits and Incentives for 491 Visa Holders
While 491 visa holders may be eligible for some government benefits and incentives, they still face certain limitations due to their temporary resident status.
Buying Property with an Australian Partner
If you are considering purchasing property with an Australian partner, this can offer significant benefits for 491 visa holders.
Costs and Fees Associated with Property Purchases for 491 Visa Holders
The costs and fees associated with property purchases for 491 visa holders can add up quickly, adding an extra layer of complexity to the process.
Compliance with FIRB Policies and Potential Consequences
When purchasing property in Australia, it is vital for 491 visa holders to comply with FIRB policies to avoid serious consequences.
Tips for 491 Visa Holders Considering Property Investment
If you’re a 491 visa holder contemplating property investment, it is strongly recommended to wait for permanent residency before purchasing property in Australia.
Summary
In conclusion, purchasing property in Australia as a 491 visa holder is possible, but it comes with its own set of challenges and restrictions.
What is the next step?
With Professional Home Loans as your trusted mortgage partner, we specialise in navigating the complexities of temporary residency and have established relationships with banks that are open to accommodate your unique situation. We understand the importance of securing the financing you need to achieve your homeownership dreams, and we’re here to guide you through the process every step of the way.
There is no cost for our service and absolutely no obligation.
Call 1300 55 44 97 today to learn how we can answer all your questions about getting a home loan on a Temporary Visa!
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Let us help guide you through the Home loan process.
FAQs – 491 Temporary Visa Home Loan
- Can I buy a house in Australia on 491 Visa?
- Can I get a home loan on a 491?
Home loans are available to those on 491 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.
Getting a home loan was really simple with Professional Home Loans.
“We went overseas during settlement and it was not a problem for them, everything went smoothly and I’m writing this from my new home! “
Jack Clancy
Well done you made it easy with no BS.
“Couldn’t ask for a better job – until next time (although no time soon, moving was awful). “
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No LMI for building home in Sydney as well as 90% LVR no lmi for investment proerpty off the plan in Newcastle.
“Professional Home Loans has provided us with a very professional service, communicating all the available options to us and in the process he has literally saved us $75k that we would have otherwise paid. They certainly go beyond the call of duty. “
Hamilton (Accountant) & Nyari (Doctor) Sydney
Working for QLD Health achieved 90% LVR no LMI at normal rates - From UK. Sunshine Coast, QLD
“We were able to get a loan at a good rate and avoid paying LMI which saved us several thousand dollars that we can now put towards other things. Very helpful and informative about all aspects of the process, not just the loan, which we really appreciated as it made the whole thing a lot easier for us.”
Craig and Louise (Medical Registrars)
On a contracting basis – she got paid roughly 70% of what she billed.
“We assisted Arlyn with a 90% Mortgage with No Lenders Mortgage Insurance payable so she could buy a house and land package Thanks so much. All credits goes back to you as you helped me make all this happen. I couldn’t thank you enough for the job excellently done. “