Non-Resident Home Loans in Australia
What is a non-resident?Non-residents can be either:
Australian citizens or Australian permanent residents living overseas; or
Citizens of foreign countries that are not permanent residents in Australia.
Can non-residents buy property in australia?Yes, non-residents can buy property in australia.
However, before purchasing any property in Australian, foreigners must have approval from the Foreign Investment Review Board (FIRB). You may not be able to purchase certain types of property. For example you may only be able to purchase new property not established or used property.
See the guide for foreigners buying property in Australia.
Note that that commencing 1 Dec 2015 there is a $5,000 application fee when applying to the Foreign Investment Review Board to purchase residential property costing less than $1 million and $10,000 for properties greater than $1 million and each million after.
Can non-residents get a home loan for property in Australia?Yes, non-residents can get a home loan to buy property in Australia.
You may only be able to get a non-resident home loan from certain lenders depending on if you are:
an Australian citizen living overseas;
an Australian permanent resident;
a New Zealand citizen;
a foreign citizen in Australia on a spouse visa;
a foreign citizen in Australia on a 457 visa;
a foreign citizen in Australia on an other work visa;
a foreign citizen in Australia on a temporary visa;
a foreign citizen in Australia on a student visa; and
a foreign citizen overseas.
Home loans for non-Australian residentsAs a non-resident, you could get a non-resident home loan from an Australian bank for the purchase of Australian property. Foreign nationals, Australian expats and temporary residents are all able to purchase Australian property and get a mortgage from an Australian bank. Your circumstances will determine the:
type of property you can purchase (new, existing)
lenders that will approve your mortgage application;
types of mortgage you can get (owner occupied home loan, investment property loan); and
conditions of the home loan.
Find out more about mortgages in australia for non residents
How much deposit do non-residents need for a home loan?This will depend on how much you are borrowing and the type of non-resident you are.
If you are a foreign citizen living overseas you may be able to borrow up to 70% of the property value from some lenders.
If you are a temporary visa holder you may be able to borrow up to 90% of the property value from some lenders, depending on your visa type.
If you are a non-resident buying with your partner that is a permanent resident or Australian citizen you may be able to borrow up to 95% of the property value.
You will also need to pay for the closing costs. These are Stamp duty, conveyancing fees, home insurance and some other fees and taxes. Stamp duty varies between States and Territories. The cost of conveyancing will depend on who you use and how much they charge. These closing costs can costs between 3-5% of the property value.
If you want to borrow more than 80% of the property value in addition to the closing costs (3-5% of the property value) you will also need to pay for lenders mortgage insurance which adds additional cost (0.5 to 5%) depending on the size of the loan and the loan to value ratio. If you are a medical doctor, vet, medical specialist, dentist, chiropractor, optometrist or physiotherapist you may be able to borrow up to 90% of the property value without paying lenders mortgage insurance.
How can Oak Laurel mortgage brokers help non-residents get a mortgage?A mortgage broker from Oak Laurel can help you get your mortgage approved even if you are a non-resident. Not only will we help you get your mortgage approved, we will compare loan offered by the different lenders so you get you a great package of interest rates, fees and features that suit your needs.
What is the best way to get a non-resident mortgage?The Australian home loan and property investment loan market is complex. There is a multitude of different home loans and other finance products available on the market today and lenders are constantly updating and changing their products.
This means that if you are not constantly analysing and reviewing what is available on the market you are unlikely to be able to find the most suitable loan products for you. Some of the best options may be for lenders that you did not know existed.
When dealing with the amounts of money involved in something like the purchase of a property, seemingly small differences can amount to thousands of dollars over the life of the loan. This is where a finance professional (mortgage broker) at Oak Laurel can assist.
Oak Laurel know the lenders that offer property loans to non-residents, their lending criteria and which ones have the best rates and loan packages. Contact us for a free consultation. We have non-resident specialist mortgage brokers ready to help you.
Find out more and get a non resident home loans australia