Foreigners arrive in Australia with various visas.  A temporary visa lets you come to Australia to work and stay on a temporary basis. Temporary visa holders are divided into different categories. The Australian government as well as Foreign Investment Review Board (FIRB) doesn’t restrict any particular visa types from borrowing money. But it actually depends on the Australian banks and lenders, if the borrowing is acceptable or not. The most accepted visa types, where the visa holders can borrow upto 95% of the property value from the Australian lenders are:

• Interdependency Visa (subclass 310/110 and 826/ 824)
• Spouse/ Spousal/ Partner visa (subclass 309/100 and 820/801

But apart from these two visa classes, other temporary visa holders can also apply for the home loans, where they can borrow 80% to 90% of the property value. Apart from that, either you have Australian income or you are earning foreign income, and are self employed, you will still be considered. 

FIRB Approval

All the temporary visa holders will require approval from Foreign Investment Review Board (FIRB) to acquire the property in Australia, unless you are acquiring it with an Australian citizen who you are married to.  FIRB charges application fees from all these temporary visa holders while buying the property, the charge being depending upon the value of property you are about to buy. 

Sadly, temporary visa holders other than spouse/partner visa cannot enjoy the First Homeowners Grant and other Australian benefits.

Spouse Visa

The spouse visa or partner visa is one of the most trusted visas. So if you are married to an Australian citizen or Australian permanent residence or New Zealand citizen, you can get the best deals from lenders as there is a lower risk. In simple words, lenders will consider you equivalent to the Australian citizens.

The migrant lending policy in Australia also  provides that the temporary visa holders can buy their own home with just 5% deposit, when borrowed with a co-borrower who holds Australian citizenship or permanent residency, which means the lenders can lend you upto 95% of the property value.

Student visa

Besides the work visas and spouse visas, even international students coming to Australia on a student visa are eligible for borrowings. There is no restriction from FIRB regarding purchase of property by students. 

However, the lending process is strict. The students must be employed and have enough income to cover the loan payments and expenses. They should not have any bad credit history.  If everything seems to be in place, then lenders can provide them with the student mortgage upto 85% of the property value. And on top of that, students will also need approximately 5% of the purchase value to cover the purchasing costs, stamp duty and conveyancing fees.

Now, you might be thinking, what about the situation where after I bought a property, I had to leave Australia. Well, it depends upon the type of  property you purchased: 

• If you have purchased an investment property, to which, the Australian Government has approved that it’s a new property (not owner occupied), then you can keep the investment property even after you leave Australia. 
• The above case will also apply to the condition where you have bought a vacant land and constructed a new building on the land within 24 months, which means you can keep the land and building even after you leave Australia. 
• If you have purchased an owner occupied property or an established property, then you must sell the house when your visa expires, and then you can leave Australia.

Lastly, an  important question for the temporary visa holders, before buying a property may arise:  “Should we wait until we become a permanent resident or should we go for it now?” Well, if you are planning to buy with an Australian citizen or a PR holder, you don’t have to wait, but it would be better if you consider purchasing the property in their names. Otherwise, it would be wiser to wait until you have your PR, as you will be eligible for a lot of concessions and benefits, with a little less struggle.