Home Loan Rate – Australia

The Foreign Investment Review Board (FIRB) examines applications from overseas citizens (This includes those who live in Australia on a 457 Working Visa, and subclass 309 or 820 Temporary Resident Visas) who are looking to invest in property in Australia.
If you are looking to purchase a home to live in or an investment property you may be required to obtain FIRB approval.

Who needs to obtain FIRB approval?
In 2010 the Federal Government of Australia announced new legislation which limits exemptions for foreign citizens and temporary residents looking to purchase property in Australia.
Below is a list of those who are exempt from obtaining FIRB approval:

• Australian citizens living overseas
• New Zealand citizens
• Permanent resident visa holders
• Anyone who is married or in a de-facto relationship with an Australian citizen (not a Permanent Resident)

Please visit the FIRB website for a complete list of exempt parties.

What type of properties can I purchase?

• Owner Occupied Property: If you are buying a home then you may be able to buy an established property (one that wasn’t recently built). You will have to sell your property if you move back to your home country or elsewhere in Australia – If you have obtained your permanent residency in the meantime then you will not be required to sell the property.
• Investment Properties: In most cases the Australian government will approve applications to buy an investment property on the condition that it is a new property (new development or if you buy land and build a property). You can often keep an investment property if you leave Australia.

Applying for permanent residency / citizenship

It is not known by us if owning real estate in Australia in any way affects your application for citizenship. Please refer these questions to your migration agent.

When is FIRB approval required?

You should apply for FIRB “pre-approval” once you have decided to buy a property in Australia; you can then look for a property at your leisure. Your solicitor or conveyancer will usually help you with your application for FIRB approval as part of their normal services.

We recommend that you obtain FIRB pre-approval at the same time as you apply with us for your mortgage pre-approval. To find out more refer to the applying for a loan section of our website.

Do you need help with a loan?

We are mortgage brokers who specialise in financing the purchase of Australian real estate by foreigners, Australians living abroad and people temporarily residing in Australia. This includes those who live in Australia on a 457 Working Visa, and subclass 309 or 820 Temporary Resident Visas.

Please refer to our Non-Resident Finance website for information about the loans that you may qualify for.

Have you recently arrived in Australia and are looking to purchase your own home?

You may be disheartened by financial institutions that keep turning you down. The simple reality is that many banks see you as a higher risk because you are not as financially committed to staying in the country as an Australian Citizen or Permanent Resident. However not every lender has strict lending policies for foreign citizens living in Australia.

With the right expert advice your dream can actually become your reality! The trick is to speak to a mortgage broker such as The Home Loan Experts, who specialises in temporary resident mortgages, and knows which lenders will approve your loan.

Getting a Pre Approval

A Pre Approval is free! So why not approach a mortgage broker to see if you will qualify for a mortgage in Australia?

Once you have a Pre Approval you can start looking for a property to purchase that you can call home.
There is nothing more discouraging than finding that perfect place and then discovering that you are not able to get a home loan or you are not able to borrow as much as you thought. By sorting out your finances up front you will be free to shop for a property at your leisure.

Do I need FIRB approval to qualify for a mortgage?

Yes, you will have to obtain approval from the Foreign Investment Review Board (FIRB) to acquire formal approval for a mortgage. We recommend you seek FIBR approval at the same time as applying with a mortgage broker for pre approval of your mortgage.

Just like with your home loan, you can get pre approval from the FIRB to buy a property. Please note that as a temporary resident there will be restrictions placed on your purchase. For example if you decide to move back overseas then you may be required to sell the property.

If you are purchasing with an Australian Citizen and you hold either a Partner Temporary Visa (820/801), Partner Visa (826/814), Interdependency/Provisional Visa (310/110), Partner Visa-Temporary/Offshore Visa (309/100) then with some banks their standard lending policy will apply. In this case a loan for 95% LVR (95% of the purchase price) is available and FIRB approval is not required.

However if you are not buying with an Australian Citizen or Permanent Resident then lenders may restrict the amount you can borrow because you have less commitment to stay in the country. The most common type of temporary residents that buy a home in Australia on their own are 457 visa holders. For more information please refer to the Temporary Business (Long Stay) page on the Home Loan Experts website.

What happens next?

Once you have found a property that you would like to purchase, and FIRB approval has been granted, you can then make an offer to purchase the property. After your offer is accepted then you will obtain final loan approval, final FIRB approval and will complete your strata (if required), pest and building inspection. The property will normally transfer into your name around six weeks after you sign the contract, depending on which state you are buying in.

Although the process of buying a home can be a little frightening when you are in a new country, you will find the final result is worth the effort. Your conveyancer and mortgage broker will work together to ensure the process is as simple and stress free as possible.

There are a lot of instances when purchasing property in Australia has its benefits.  This is true whether you are a foreigner or an Australian citizen.  Investing in property and real estate and Australia is often low risk as value of property is constantly on the rise.

However certain steps must be taken before a loan can be made.  First and foremost Foreign Investment Regulatory Board (FIRB) approval is often necessary unless you fall under the exceptions.  There are several exceptions.

First and foremost an Australian citizen living approval does not need FIRB approval.  Where your spouse is Australian, and you are purchasing a house to live in as joint tenants you likewise need not ask for FIRB approval.  Residents of New Zealand are likewise exempt, and if you hold a permanent resident visa you need not seek any approval.

Temporary residents on the other hand are exempt when purchasing single blocks of vacant land, or new dwellings.  Purchasing a second hand dwelling to live in is also exempt, or even purchasing new dwelling as long as they are pre approved to be sold to foreign citizens.

If you fall within these exemptions, that is one less process to worry about.

Whether or not you need FIRB approval is one thing, while another item for those trying to get a loan is how much of a loan they can get.  Australian citizens living abroad can generally get up to 95% LVR with LMI.  This is the same maximum for those with foreign spouses either working abroad or working in Australia.  Temporary residents working in Australia on the other hand can get up to 85% LVR, while foreign nationals who live and work abroad can get up to 80% of the total property value.

Investing and buying real estate is a genuine opportunity to make a wise investment.  As long as all the requirements such as FIRB approval and the necessary documents are submitted, it shouldn’t be hard at all for a foreigner to get a loan to purchase the property they would like in Australia.

There is no question that Australia is a land of opportunity.  The huge continent is home to a small population that has yet to fully take advantage of the country’s real estate potential.  Recent news suggests that the housing market in the United States has hit an all time low, with housing prices and purchasing down and out. This makes Australia an ideal alternative to invest in. The diversity of the country and the constant rising prices of real estate, the rich natural resources, and the diverse and beautiful areas to choose from make Australia an ideal option for multiple investments in real estate.
The nice thing about this fact is that foreigners may freely invest in Australia, all they need is government approval and once this is granted then investing may be done. There are various options available to potential investors. The choices of investments can range from purchasing vacant land, multiple units on one title, off the plan units, student accommodations, dual occupancy units, hotel conversions, and all the way through to mining towns.
These numerous options are what make Australia a great place to invest in and the property value will vary greatly depending on what type you choose to invest in. This means that the price of the property can range from very cheap to extremely expensive.
For more information on possible real estate investments in Australia, it would be best to consult the experts on home loans.  They have the information on the best possible investments and with the most potential for real estate.  They can also custom fit certain loan products to your capacity to invest and the amount of risk that you are willing to take.

A year after the subprime mortgage crisis struck the United States, the effects are still being felt around the globe.  There is an economic slowdown, and prices of real estate have not yet fully recovered.  Buyers and investors are also looking for alternative places to invest their money, and trying to find safe havens for sure and steady earnings.

Fortunately for some investors, they have found this safe haven in Australia.  Prices of real estate have been steadily on the rise, and there has not been much depreciation felt in majority of the country.  Of course those looking for good deals and real estate bargains can simply do a little more research, and find that investment opportunity abound.

Investors whether foreigners or citizens can choose from a variety of investments.  They can try purchasing off the plan units, or buy multiple apartments on one title.  Student accommodation purchases are also common and purchasing properties in mining towns can also be an option.  Vacant land can likewise be purchased and later developed, and high end properties worth millions can also be purchased by prospective investors.

With the wide variety of choices of real estate properties to invest in, it would be nearly impossible not to find an interesting property for possible investment.  Considering that the land area in Australia is huge, the potential for expansion of real estate is endless, and the possibilities are limitless.  With a stream of constant investment opportunities, and unlimited choices, an investor could not ask for more.

In order to make sure that you are able to make the most of your time and money it would be best to consult the experts on home loans,  They can provide you with the necessary information, and provide you with the details of investment opportunities in Australia. They can also ensure that you are able to provide the proper documents when you engage in investing and real estate related purchases in Australia.

You have lived and worked “down under” for a number of years already, yet you are still renting a place, and paying the monthly rent is becoming too much of a hassle for you.  You would like a place to call home, but the problem is you are not an Australian citizen.  You ask, is it possible for a foreign citizen to be granted a home loan?

The answer to the above question is a resounding yes!  You may be a non-resident, but do not despair, it still does not deprive you of your right to live in place that you can call your own.  This should also clarify the long standing misbelief that just because you are a foreigner, you are not qualified to get a mortgage.

Of course it may sound easier than the actual loan application, but that shouldn’t be much of a bother.  The point of the situation is the fact that foreigners can be granted home loans.

The basic requirement is generally FIRB approval.  Once this is granted then purchasing property with the use of your home loan should not be a problem.

Once these requirements are submitted, then you basically have as much of a chance as any Australian citizen in getting a home loan.  In fact, citizenship actually is not a major factor.  The important part is that you can show you are capable of paying the loan, and if you have a strong financial position.  Always remember that banks and lenders are just seeking to find the best borrowers, and this means borrowers who can and will pay on time.  Just because you are a foreigner does not mean you are a bad borrower.  In fact, you may be a better borrower than most as long as you can prove it by providing the bank or lender with the necessary documents.

In these instances it is also good to point out that if you are not a citizen, but are married to an Australian, then this increases the chances of your loan being granted in the first place, less documentary requirements, and generally you can get up to 95% of the value of the property as a loan.

For more information on loans of this nature, it would be best to consult the experts.  They can provide you with tips and advice on how to ensure that your home loan application is granted for a temporary visa holder living in Australia.