How To Get A Non Resident Home Loan In Australia
Australia is known for having some of the most liveable cities in the world – like Melbourne and Sydney – and given its diverse landscapes, friendly locals and a long list of amazing ‘bucket list’ experiences, it has been one of the ‘must-visit’ places for travellers. It has also become one of those places non residents want to invest in using a non resident home loan.
In this article, let’s delve deeper into why Australia is so popular in the real estate segment and how non residents can get a home loan in Australia. Australian property is often lauded by investors for its ability to maintain a steady rental yield while achieving positive capital growth so it is not surprising to see the rise of foreigners investing in Australian property.
If you are a non resident and have been considering investing in Australian real estate, you’d be happy to know that there are non resident home loans in Australia which are readily available for you. However, there are some restrictions such as only being able to purchase new properties and having to get FIRB approval. Without further ado, let’s get to the nuts and bolts of getting a non resident mortgage in Australia.
What is a Non Resident Home Loan in Australia?
According to the Foreign Investment Review Board (FIRB), if you are a foreigner or a non resident in Australia, you can be considered as a non resident getting a home loan to buy property in Australia so long as you clearly understand the property market. You must also adhere to the rules set by the review board in its application process.
A non resident home loan is also a great option for temporary residents who are looking to buy property in Australia. There are lenders, banks, financial institutions, and credit groups, among others, who may be able to provide you with loanable funds which you can use to acquire property, albeit at a much stricter mortgage approval criteria compared to Aussie residents and permanent residents.
Investing as a Non-resident Buying Property in Australia
If you are a non resident and have been considering investing in Australian real estate, you’d be happy to know that there are non resident home loans in Australia which are readily available for you. However, there are some restrictions such as only being able to purchase new properties and having to get FIRB approval. Without further ado, let’s get to the nuts and bolts of getting a non resident mortgage in Australia.
As a non resident, there is always the concern about being assessed differently from residents of Australia for an Australian non resident mortgage. It may come in the form of higher fees or increased interest rates in your non resident Australian home loan. As such, you must be prepared to accept these realities and consider if it is something that you can bear, weighing the costs and the benefits of real estate investment in Australia. If you earn an overseas income, our advisors can recommend suitable non resident home loans in Australia for your consideration.
Most lenders have non resident home mortgage packages that are quite attractive and include a unique hybrid offering or tailored-fit deal for foreigners buying property in Australia considering their exceptional circumstances, needs and preferences. It would be wise to scrutinise every feature of your non resident mortgage in Australia to ensure you are getting the best offer available.
Some costs that you must be prepared for are fees on the property inspection (approx $300-$500), foreign citizen stamp duty surcharge (an extra 3-8% on top of standard rates), FIRB approval ($5,700 for properties under $1 million), loan application fees ($700-$1000), lenders mortgage insurance (1-2% of loan amount), title search and registration fees ($150+), and legal fees for conveyancing ($1500-$3000).
It may accumulate as you progress with your purchase, so it is always good to draw up your budget before applying for a non resident home loan or home loans for temporary residents in Australia.
