Home loans for new immigrants
Buying after arriving, once you hold permanent residency.
Home Loans for Temporary Residents and Visa Holders
Buying in Australia on a visa is possible, and more common than people think. What changes is the deposit, the lender list, and whether you need FIRB approval.
Temporary residents can and do buy property in Australia. Three things change compared with a citizen or permanent resident: you will generally need a larger deposit, the list of lenders willing to help is much shorter, and you will usually need Foreign Investment Review Board approval before you buy. None of those are dealbreakers, but all three need sorting before you make an offer rather than after.
This is an area where general advice is close to useless, because the answer depends on your specific visa, your income source and sometimes your country of citizenship. What follows is the shape of it — the rules that apply, the questions lenders ask, and the traps that cost people money.
We do place these loans, including purchases requiring FIRB approval. If you want a direct answer for your visa, tell us the subclass and we will tell you where you stand.
The three things that change
1. Your deposit will usually need to be larger
Lenders that accept temporary residents typically want a bigger deposit than they would from a citizen. Lenders Mortgage Insurance is harder to obtain for non-residents, which effectively raises the deposit floor. Plan for meaningfully more than the 5–10% a citizen might use.
2. The lender list is short
Most lenders will not write these loans at all. Those that do apply their own rules on acceptable visa subclasses, acceptable income sources and maximum loan-to-value ratios. This is the single strongest argument for having someone check the panel rather than approaching your own bank and taking a no as the answer.
3. You will probably need FIRB approval
Foreign persons, including most temporary residents, generally need Foreign Investment Review Board approval before purchasing residential property. It is a separate process from your loan, it carries an application fee, and it takes time.
Which visas lenders commonly consider
Policies differ and change, so treat this as orientation rather than a rule. Broadly, lenders look at how long you can remain in Australia and how stable your income is.
- Skilled work visas such as the 482, 494 and 491 are the most commonly accepted, particularly with an Australian employer and Australian-sourced income.
- Partner visas (820/801 and 309/100) are often treated favourably, especially where the partner is a citizen or permanent resident and applies jointly.
- Graduate visas such as the 485 are accepted by some lenders, usually with a stronger deposit and stable employment.
- Student visas are the hardest. A small number of lenders consider them, generally with a substantial deposit.
- Bridging visas are assessed case by case and depend heavily on what you are bridging between.
- New Zealand citizens (subclass 444) are frequently treated much like permanent residents, which is a significant advantage and often not realised.
Buying with an Australian partner changes the picture considerably. Where one applicant is a citizen or permanent resident, the deposit requirement and lender list often improve, and FIRB may not apply in the same way. If that describes you, it is worth structuring the application deliberately.
FIRB approval, in plain terms
FIRB is the federal screening process for foreign purchases of Australian property. The essentials:
- It happens before you buy, not after. Contracts are usually made conditional on approval.
- There is an application fee, which scales with the property value and is not trivial.
- What you may buy is restricted. Temporary residents are generally limited in the type of established property they can purchase, with new dwellings treated differently.
- Conditions can attach, including requirements about occupying or selling the property when your visa ends.
The rules and fees change, so do not rely on any article — including this one — for current figures. Check the Australian Taxation Office and Treasury guidance, or ask us and we will point you to the current source.
The duty surcharge nobody budgets for
In NSW, foreign persons pay surcharge purchaser duty on top of ordinary transfer duty, and may also face an annual land tax surcharge.
Two things make this dangerous. It is a large amount, and the definition of “foreign person” is broader than most people assume — it can capture certain temporary visa holders, and trusts or companies with foreign interests behind them.
Work out ordinary duty with the NSW stamp duty calculator, then confirm the surcharge position with Revenue NSW before you exchange. Getting this wrong after contracts are signed is expensive and not negotiable.
Foreign income, and why it narrows the field
If your income is earned overseas or paid in a foreign currency, expect additional caution:
- Many lenders will not consider foreign income at all.
- Those that do commonly apply a discount to allow for exchange rate movement.
- Some restrict acceptable currencies to a defined list.
- Documentation is heavier — translated payslips, tax returns and employment confirmation.
Australian-sourced income from an Australian employer is markedly simpler, and is the main reason skilled work visa holders find this easier than most.
What to sort out before you start looking
1
Confirm your visa subclass and expiry
Lenders assess the subclass, not the general category. Have the grant notice available.
2
Establish whether FIRB applies
And what it permits you to buy. It shapes which properties are even worth inspecting.
3
Confirm the surcharge position
Before you set a budget, not after you have made an offer.
4
Get finance assessed against the right panel
Being declined by a lender that never writes visa loans tells you nothing, and leaves a mark on your credit file.
Common questions
Frequently yes, particularly with Australian-sourced income from an Australian employer. Skilled work visas are the most widely accepted category. Expect a larger deposit than a citizen would need, and a shorter list of lenders.
Most temporary residents do for residential property, and it must be obtained before purchase. There is an application fee and restrictions on what you may buy. Rules change, so confirm the current position rather than relying on general guidance.
More than a citizen would typically need, because Lenders Mortgage Insurance is harder to obtain for non-residents. The exact figure depends on your visa, income source and the lender, so it is worth getting a specific answer rather than planning around a general one.
Considerably, in most cases. Where one applicant is a citizen or permanent resident, deposit requirements and the lender list usually improve, and the FIRB position may differ. It is worth structuring the application around that deliberately.
In NSW, foreign persons pay surcharge purchaser duty on top of ordinary transfer duty, and may face an annual land tax surcharge. The definition of foreign person is broader than people expect. Confirm your position with Revenue NSW before exchanging contracts.
It depends on the FIRB conditions attached to your purchase and on your loan terms. Some approvals carry obligations about selling the property once you cease to be a temporary resident. This is worth understanding before you buy, not after.
Tell us your visa subclass and we will tell you where you stand
We place loans for temporary residents including purchases requiring FIRB approval. One conversation will tell you the deposit you need and which lenders will consider you.
Related
NSW stamp duty calculator
Work out ordinary duty before checking the surcharge.
Low deposit home loans
What is possible when the deposit is the constraint.