If you're a migrant in Australia looking to purchase a home, you may have wondered about your eligibility for a home loan.
The good news is that home loans for migrants are available at the same interest rates as those for Australian citizens. There is no additional loading on the interest rate just because you are a migrant.
As long as you have permission to work in Australia, a clean credit history, some savings, and stable employment, you can secure a home loan even if you don't hold permanent residency.
Don't be disheartened if you've been declined by your bank or broker or have been told that your visa status disqualifies you.
We at MAP have negotiated special arrangements with select banks and non-bank lenders that are not typically offered by most institutions in Australia.
In this article, we will provide you with valuable information about migrant home loans and guide you through the process of securing a home loan.
How Much Deposit Do I Need as a Migrant?
The deposit required for a migrant home loan will depend on your residency status. Let's take a look at the deposit requirements at different levels.
95% of the Purchase Price:
If you hold permanent residency or are purchasing with a co-borrower who holds permanent residency or Australian citizenship, you will only need a 5% deposit plus additional costs.
Some banks and non-bank lenders are willing to lend up to 95% of the purchase price as long as at least one migrant borrower is a permanent resident.
This provides an excellent opportunity for migrants to enter the property market with a minimal deposit.
Here are some specific visa categories that allow for a 95% loan-to-value ratio (LVR):
- Spouse visa home loans (note: it does not have to be your spouse you are buying with)
- Prospective Marriage Subclass 300 Visa Home Loan
- NZ Family Relationship Subclass 461 Visa Mortgage
90% of the Purchase Price:
Migrants on certain visas can borrow up to 90% of the purchase price, thereby requiring a 10% deposit. The following visa categories are eligible for a 90% LVR:
- Migrants on a 457 Visa: See 457 Visa Home Loan
- Migrants on a Skilled Regional Sponsored 475 Visa: See 475 Visa Home Loan
- Migrants on a Skilled Graduate 487 Visa: See 487 Visa Home Loans
- Migrants on a Skilled Regional Visa 495: See 495 Visa Home Loan
80% of the Purchase Price:
For migrants on visas not identified above and not purchasing with an Australian citizen or permanent resident, most lenders typically allow borrowing up to 80% of the purchase price.
However, it's important to note that each lender has its own specific policies regarding different visa types. Some noteworthy cases include:
- Migrants on a Bridging Visa A or B: See Bridging Visa A and B Home Loan
- Student Visa holders: Student Visa Mortgage (limited to 80% of the purchase price, with only a handful of lenders offering loans on this visa)
Stamp Duty and Costs:
It's essential to remember that the loan amount specified for each visa category represents the maximum the banks will lend based on your specific visa. In addition to the loan amount, you will need funds to cover stamp duty and other purchasing costs.
For example, if the maximum loan is 90% LVR, you will need the remaining 10% plus the necessary funds for stamp duty and associated costs. The costs will vary depending on the state of Australia you are in, ranging from 3% to 7% of the purchase price.
We recommend requesting a free Home Loan Strategy Session with our experts to explore your options and learn how to secure fast home loan approval, even if you don't have a 20% deposit.
They will provide an exploratory chat about your specific situation, the options available to you, and how to secure a competitive rate.
Do I Require FIRB Approval as a Migrant?
Foreign Investment Review Board Approval (FIRB) is generally required for migrants who do not hold permanent residency before they can commit to buying a home in Australia.
However, FIRB approval is typically considered a technicality if you are purchasing the property to live in and not as an investment property for renting out. If you're unsure about the FIRB approval process for temporary residents, we provide more information on our website to guide you through the requirements.
I Have Been Declined – How Can MAP Help?
It's true that migrants can be approved for home loan finance to buy property in Australia. However, it is a complex and specialized area, with each bank having different lending policies regarding visa types and required deposits.
The key to ensuring your home loan is approved on the first attempt and getting the best deal available to you is to work with a specialist mortgage broker who has in-depth knowledge of the Migrant Lending Policy.
MAP Mortgage Brokers are the experts when it comes to Migrant Home Loans. We understand the intricacies of the lending landscape and can guide you step by step through the process. Whether you're a permanent resident, hold a temporary visa, or are purchasing with a co-borrower, we have the expertise to assist you.
Don't hesitate to contact MAP today to see how we can help you achieve your dream of owning a home in Australia.
Purchasing a home as a migrant in Australia is not an impossible task. With the right knowledge and assistance, you can secure a home loan at competitive rates, regardless of your visa status. Remember that the deposit requirements and loan-to-value ratios vary depending on your residency status and the type of visa you hold.
Seeking the help of a specialist mortgage broker who understands the Migrant Lending Policy can greatly increase your chances of loan approval and ensure you get the best possible deal.
Take control of your homeownership journey by exploring the information on our website and reaching out to MAP for expert assistance. Don't let temporary residency hold you back from achieving your dream of owning a home in Australia.
- Q: What interest rates will I be charged as a migrant for a home loan? A: Migrants in Australia are eligible for the same interest rates as Australian citizens. There is no additional loading on the interest rate because of your migrant status.
- Q: Can I qualify for a home loan if I don't hold permanent residency? A: Yes, you can still qualify for a home loan even if you don't hold permanent residency. Lenders have specific arrangements and policies in place for migrants, allowing them to secure home loans based on their visa type and financial situation.
- Q: Do I need a large deposit to buy a home as a migrant? A: The deposit requirements vary depending on your residency status and visa type. Migrants with permanent residency or purchasing with a co-borrower who holds permanent residency may only need a 5% deposit plus additional costs. Other visa categories may require a 10% or 20% deposit, depending on the lender's policies.
- Q: What is FIRB approval, and do I need it as a migrant? A: FIRB approval is generally required for migrants who do not hold permanent residency before they can purchase a home in Australia.