If you are on a Bridging Visa, we can help with your Home Loan
- Fast turnaround time
- Guide you from preapproval to settlement
- Borrow up to 80% of the purchase price
- No cost, no obligation service
Home Loans for Bridging Visa
Bridging visas are transitory visas which allow you to remain in Australia for a period of time between visa applications or until you make arrangements to depart Australia. Depending on the amount of volume the Immigration Department receives, this can be anywhere between 3 months to 2 years. The Bridging Visa becomes active when your current visa expires, while you’re waiting for approval for your new visa. Many lenders do not lend to Bridging Visa due to the risk of the new visa not getting approved. However, there are lenders that can assist. We are here to guide you through the process of getting approval to buy your first home.
How Much Can You Borrow?
Bridging Visa can borrow up to 80% of the value of the property. This means you will need to come up with 20% deposit.
Which Bridging Visa can we assist?
There are two Bridging Visa that we can assist and lend up. The key requirement is the visa gives you working rights. They are:
- Bridging Visa A (BVA) – Subclass 010
- Bridging Visa B (BVB) – Subclass 020
Are there requirements for Bridging Visa when applying for finance?
Yes, there are several requirements that they need to meet. They include:
- Working in your position for at least 6 months. Cannot be on probation
- Have a clear pathway from Permanent Residency
How much savings do you need?
On top of the 20% deposit, you will need sufficient funds to cover:
- Foreign Investment Review Board application fee – Fees is dependent on the value of the property. They can be found here.
- Foreign Buyer Stamp Duty – This is a percentage of the value of the property. This varies state by state, but not applicable in ACT and NT.
- Funds to cover solicitor fees and incidentals – we usually allocate $2,500 to cover these costs. They may vary depending on who you use for your conveyancing.
The key to achieving approval for your home loan lies in applying to the right bank—one that accepts your visa and acknowledges your status as a temporary resident.
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 accommodating 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.
Contact us online or call 1300 55 44 97 today to learn how we can help make your hard work and professional experience pay off!
Free 30-Minute Finance Strategy Session For Professionals
Let us help guide you through the Home loan process.
FAQs – Bridging Visa Home Loan
- Can I buy a house in Australia on a Bridging Visa?
Yes, you can.
- Can I get a home loan on a Bridging Visa?
Yes, you can. You can borrow up to 80% when they are on the loan with you.
- 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.
“You not only got the loan approved on time, but at a better rate! You are professional, honest, dedicated & obviously love what you do-your passion shines through & I look forward to doing all my loans through you from now on!”
Linh
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
Great service, always attentive and let us know what would happen, how it would work, what was required etc. Tom goes the extra mile and is always available on the phone or email at anytime to explain things. Phenomenal Service. You won’t get better (Although first house purchase in Australia, this is my 4th house purchase and the best service yet by far!)
Peter
Michael succeeded where other brokers couldn’t due to my subclass 461 visa. Clear and prompt comms from start to finish and fantastic service.
Thanks Michael 🥳
Alex S
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
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