457 Visa Home Loans: Can a Non-Permanent Resident Get a Mortgage?

By 27 February 2017Education
457 visa home loan

There are a number of residents who face different challenges when they seek approval for a home loan in Australia. For example, as a 457 visa holder, a financial institution or lender might have refused you in the past. It’s also possible that lenders charge you inflated interest rates because of your visa status. Moreover, other non-residents share the same issues and challenges when applying for a home loan, when instead it could be executed smoothly.

457 Visa Home Loans: Do Temporary or Non-Residents Have to Meet Additional Requirements?

It is quite likely that the lending process is designed to be convenient for Australian citizens and the rules are different for non-residents. Non-residents fall under the category of 457 visa holders. It’s important to find a broker who knows and understands these requirements. However, some of the risks involved with working with a mortgage broker who is not familiar with this area include:

  • Your visa application being rejected by financial institutions over and over again
  • Excessive fees, deposits, and interest rates throughout the loan period

Hunter Galloway can assist you with 457 visa home loans, speak to our team now on 1300 088 065 or email Joshua at Joshua.Vecchio@huntergalloway.com.au

457 visa home loan

How Important is it to Find the Right Broker?

In Australia, less than one percent of loans represent non-resident loans. Therefore, it can be hard to find the right broker as such loans make up only a small fraction of loans available.

Finding the right broker will enable you to answer the following questions:

  • Will you be getting approval for a home loan?
  • How much money can you borrow?
  • How much deposit do you need?
  • What will be the rate of interest on the loan amount?
  • What will be the value of repayments?
  • How long will the approval process take?
  • Will there be requirements for Lenders Mortgage Insurance (LMI)?
  • Will you need the approval of the Foreign Investment Review Board?
  • And last but not least, how does the process of purchasing a house in Australia work?

A broker with the right experience and knowledge will answer all of the questions and enable you to find a home loan with reasonable terms.

Policies of Financial Institutions for Non-Residents Home Loans

Different financial institutions offer different terms for non-resident home loans. Below are the borrowing requirements of different institutions.

  • Australian Mutual Provident Society (AMP) – allows a maximum leverage of 80% up to $500,000 and 75% up to $750,000.
  • ANZ Bank – Visa holders PAYG with 457 visa class are subject to a regular ANZ PAYG policy and can consume their foreign income up to 50% of the calculation of loan serviceability.
  • NAB – provides up to 95% with normal guidelines if one of the applicants applying for a loan is a permanent citizen or resident. In other cases, a leverage of 80% will be applied.

Will Losing Your Job Make You Lose Your Property?

Another concern of 457 visa holders is what happens if all of the sudden work is terminated. Fortunately, losing a job does not impact your property immediately. After losing a job, you can either find a new employer who can sponsor you, or you can apply for another visa, for example, a bridging visa.

The Department of Immigration and Citizenship (DIAC) monitors your activities once your employment ends, and keeps note of your actions regarding a new visa application or finding new employment. After a period of 28 days, DIAC will send you a letter with an intent to cancel your visa. You will have a period of 7 days to respond to that letter, telling them why your visa should not be cancelled. Losing your 457 visa means you are no longer eligible to live in your property and should leave the country.

Therefore, it is very important to have full awareness of how to go about looking for a home loan if you fall into the category of a 457 visa holder. Finding the right broker will enable you to get a loan on reasonable terms with no opportunity costs attached to it. Chat to our team now for more information.

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