Australia is an attractive destination for investors. Many potential migrants (non-residents and temporary residents) are eager to invest in real-estate market of the country. But, they do not fully understand that “Australian Visa Requirements” must be satisfied before they can consider borrowing funds to purchase a new or used home, or investment property in Australia. So, before you start applying for a loan, here are a few things that require attention of every potential investor.
Visa Subclasses Preferred by Lenders/Credit Providers
It has become increasingly evident that lenders/credit providers will normally prefer to lend to any of the following Temporary Resident Visa Subclasses:
>> Subclass 457 – Temporary Business (Long Stay) – Standard Business Sponsorship
>> Subclass 405 – Investor Retirement Visa
>> Subclass 415 – Foreign Government Agency Visa
>> Subclass 426 – Domestic Workers Visa
>> Subclass 995 Diplomats Visa
>> Subclass 422 – Medical Practitioner (Temporary) Visa
Diverse Home Loan Application Process
All Visa holders are assessed differently, and the process will depend on the type of Visa holder you are. Interestingly, lenders/credit providers have identified that the most common types of Visa holders applying for home loans are:
>> Visa holders on Spouse Visas (subclass 309/100 and 820/801), and
>> Visa holders on Temporary Business (Long Stay) – Standard Business Sponsorship Visas (Subclass 457)
Security Types Considered by Lenders/Credit Providers
Here is a list of security types that you can consider. However, it is important to note that any dwellings must have never been occupied or been previously sold:
>> To buy vacant land, so long as you start continuous construction within 12 months
>> To buy units, townhouses, and house/land packages
>> To buy existing residences for redevelopment as long as:
1. the development will increase the supply of housing
2. the land remains unoccupied during redevelopment, and
3. no more than 50 percent of the dwellings in any one redevelopment are sold to foreign investors
Important Factors considered by Lenders/Credit Providers
Once you get your Australian Visa, you can apply for a home loan. It is always advisable to seek help of an expert finance broker who specialises in getting home loans for non-resident and temporary residents.
The finance broker you employ for your services should have a thorough knowledge of what the lending policies and standard requirements are for specialised lenders.
He/she will prepare a “Home Loan Checklist” to help you understand what factors the lenders/credit providers take into consideration like:
Residency Status: The time remaining on your Visa, your Visa conditions, and the country you are a citizen of
Genuine Savings: You must be able to prove that at least 5%of the purchase price is being saved in an account in your name. And, the other funds can come from any other source including a gift from your parents overseas.
Employment: For some lenders/credit providers if you are:
>> Borrowing 80% of the property value, then you can be in your current job for as little as one day, or
>> Borrowing more than 80% of the property value and up to 90%, then you may be required to be in your job for six months or more
However, if you are a permanent employee, you are held in a higher regard by the lenders/credit providers than if you are a casual, a contractor or a temporary employee.
So, don’t worry about getting pre-approval on home loans for non-residents and temporary residents. An expert finance broker will do all the hard work for you to make sure you get a quick pre-approval. So, it is ideal to employ the services of a reputed finance broker as he/she will save you all the trouble of establishing if your Visa requirements are met and to find you the best home loan deal.