Is it possible to get a first home loan as a temporary resident?
Many Australian lenders are not comfortable with lending to first home buyers, who aren’t Australian permanent residents or Citizens. For many lenders, it is too risky to lend to an applicant without permanent residency as they are concerns about a temporary residents ability to stay in Australia for a long period of time.
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As a first home buyer, can I get a loan as a temporary resident?
The short answer is, YES! Whilst there are only a few select lenders that will lend to temporary residents, you can still get your first home loan and potentially at the interest rates that permanent residents/citizens are eligible for. The key to getting a home loan approval is selecting the right lender and selecting the lender that offers the most suitable products.
Which Visas do lenders accept?
Visas – allowing you to borrow up to 95% of the property value
- 309/100 – Partner Visa
- 820/801 – Partner Visa
- 310/110 – Partner Visa
- 826/814 – Interdependency Visa
- Plus other temporary spouse Visas
Visas – allowing you to borrow up to 80% of the property value
- 457 – Long stay Visa
- 401 & 403 – Temporary Visas
- 417 – Working Holiday Visa
- 411 – Skilled Exchange Visa
- 461 – New Zealand Citizen’s Family Members Visa
- Plus many other visas – ask your FHBA Broker to see if your Visa qualifies
You can still get a loan while on a temporary Visa
Do all borrowers need to be permanent residents/Citizens?
If one borrower is a permanent resident/citizen and the other is a temporary resident, then you will be eligible to borrow up to 95% of the property purchase and the lender will consider the income for both applicants.
If you’re married to or in a relationship with an Australian Citizen, Australian permanent resident or NZ Citizen, some lenders will consider you to to be a permanent resident of Australia.
The following requirements apply if you are looking to borrow more than 80% of the property purchase:
- The temporary resident and the partner should be buying together
- The relationship must be legitimate – married and defacto relationships are accepted (same-sex marriages are accepted)
- Most lenders will prefer that you buy as joint tenants – whereby both applicants are equally responsible for the loan
Can income earned in a foreign currency be accepted?
Recently, many first home buyers have asked us about whether the income they earn in a different currency can be used for the assessment of their first home loan in Australia. The short answer is, YES! FHBA Mortgages has access to several lenders who will accept income that is earned in a foreign currency.
However, not all currencies are accepted. The following currencies are likely to be accepted for the purposes of servicing your first home loan:
- British Pounds (GBP)
- Euro (EUR)
- Hong Kong Dollars (HKD)
- New Zealand Dollars (NZD)
- Singapore Dollars (SGD)
- United States of America Dollars (USD)
- Canadian Dollars (CAD)
- Japanese Yen (JPY)
- Indian Rupee (INR)
- Indonesian Rupiah (IDR)
- Vietnamese Dong (VND)
- Chinese Renminbi (CNY)
Am I still eligible for First Home Owner Grants (FHOG) & Incentives as a temporary resident?
Temporary residents may be eligible for Government incentives, only if you are buying with an Australian citizen or permanent resident. If neither purchaser holds citizenship or permanent residency then the FHOG is not available.
If you’re on a spouse or partner visa and are buying with your partner, who’s either an Australian citizen or permanent resident then you can qualify for the state FHOGs and in some states, you will be able to qualify for the stamp duty concessions/exemptions.
How do I get my first home loan as a temporary resident?
At FHBA Mortgages, our FHBA Brokers/Coaches are experienced with all types of situations can help first home buyers regardless of whether they are a temporary resident or a Citizen/permanent resident.
If you want to start your first home buying journey today or if you would like a complimentary chat with a first home buyer broker to discuss your scenario, please complete the form below:
First Home Buyers Australia