Home Loans for Non-Residents and Visa Holders in Australia: A Complete Guide
You are living in Australia, building a life here, and you want to buy property. But the lending rules for temporary visa holders and non-residents are different from those that apply to citizens and permanent residents. As a Nepali mortgage broker serving clients across Australia, Laxmi Home Loans has helped hundreds of visa holders navigate this process. This guide explains FIRB rules, which visa types qualify, how much deposit you need, and the smartest way to approach your application.
Yes, non-residents and temporary visa holders can get a home loan in Australia. Most lenders require a deposit of 20% to 30% and FIRB approval for eligible buyers. If you are purchasing jointly with an Australian citizen or permanent resident spouse, you may qualify for up to 95% LVR at standard rates. LMI may apply.
Amrit moved to Sydney from Nepal in 2019 on a skilled work visa. By 2024, he had stable employment, a growing savings balance, and a clear desire to stop renting and build equity in the country he was making his home. But when he went to his bank, he was told his visa made things complicated. He left with no clear answer and a sense that it was not possible.
It is possible. Amrit’s situation is one we see regularly at Laxmi Home Loans. The rules are more complex for visa holders and non-residents, but with the right guidance and the right lender, a home loan is achievable for many borrowers in this position.
Can Non-Residents and Visa Holders Get a Home Loan in Australia?
Yes. However, the criteria differ significantly from those that apply to Australian citizens and permanent residents. Two separate sets of rules govern property purchases for this group: Foreign Investment Review Board (FIRB) regulations, which determine what type of property you can buy and whether you need government approval, and lender-specific credit policies, which determine how much you can borrow and on what terms.
Understanding both is essential before you start looking at properties or approaching lenders.
FIRB Rules: What Property Can You Buy?
The Foreign Investment Review Board (FIRB) administers the rules that apply to foreign nationals and temporary residents purchasing property in Australia. These rules are set under the Foreign Acquisitions and Takeovers Act 1975.
Temporary Residents
If you hold a temporary visa, you are generally permitted to purchase one established dwelling to use as your primary residence, subject to FIRB approval. You must sell that property when you leave Australia or your visa expires. You may also purchase new dwellings, off-the-plan properties, or vacant land for development without the obligation to sell on departure.
Foreign Nationals (Non-Residents)
If you do not hold an Australian visa and do not reside in Australia, you are generally restricted to purchasing new dwellings, off-the-plan properties, or vacant land to build on. Purchasing established dwellings as a non-resident is heavily restricted under FIRB rules.
Purchasing with an Australian Citizen or Permanent Resident
If you are purchasing a property jointly with an Australian citizen or permanent resident spouse, the rules are significantly more flexible. In many cases, FIRB approval is not required for the purchase of an established dwelling, and standard lending criteria may apply depending on the lender.
FIRB Approval Fees Apply: Temporary residents and foreign nationals who require FIRB approval must pay an application fee. The fee is based on the value of the property being purchased and is non-refundable regardless of the outcome. FIRB approval should be obtained before you exchange contracts.
Foreign Citizen Stamp Duty Surcharge
Most Australian states and territories charge an additional stamp duty surcharge on property purchases by foreign citizens. This is separate from standard stamp duty and can add a significant cost to your purchase. The surcharge rate varies by state. For example, in New South Wales, foreign buyers pay an additional surcharge of 8% of the property value on top of standard stamp duty. In Victoria, the surcharge is 8%. You should account for this cost when calculating your total funds required.
How Much Deposit Do You Need?
Deposit requirements for non-residents and temporary visa holders are stricter than for citizens and permanent residents. The following table summarises what most lenders require.
| Borrower Type | Typical Maximum LVR | Minimum Deposit | LMI Available |
|---|---|---|---|
| Australian citizen or permanent resident | Up to 95% | 5% | Yes |
| Temporary visa holder (sole applicant) | 70% to 80% | 20% to 30% | Generally no |
| Temporary visa holder with citizen/PR spouse | Up to 95% | 5% | Yes (standard criteria) |
| Foreign national (non-resident, no visa) | 60% to 70% | 30% to 40% | No |
| Expat with Australian income | Up to 80% | 20% | Limited |
These figures are indicative. Each lender applies its own criteria, and some specialist lenders offer more flexible LVR options for certain visa types. The deposit you need also depends on the property value, your income, and the purpose of the purchase.
Which Visa Types Are Eligible for a Home Loan?
Not all visas are treated equally by lenders. The following visa subclasses are generally viewed favourably because they demonstrate a clear pathway to permanent residency or stable, long-term employment in Australia.
| Visa Subclass | Visa Type | Lender Acceptability |
|---|---|---|
| 820/801 309/100 | Partner and spouse visas | High (pathway to PR). Not eligible for the government 5% deposit scheme. In most cases no FIRB required. Talk to your conveyancer. |
| 482 457 | Temporary Skill Shortage and skilled work visas | High (employer-sponsored). No foreign buyer surcharge in most eligible states such as ACT and NT, however, always check with your conveyancer. |
| 189 190 191 | Permanent skilled visas | Standard (PR status) |
| 491 | Skilled Work Regional visa | High (no foreign buyer surcharge in most eligible regions) |
| 485 | Temporary Graduate visa | Very limited. Only a small number of lenders may accept this visa type. Expect a higher deposit requirement and higher interest rate. Not all lenders will consider this subclass. |
| BVA BVB | Bridging visas tied to partner or skilled visa | Very limited. A very small number of lenders may consider bridging visas in specific circumstances. Higher deposit and higher interest rate apply. Always confirm lender appetite before applying. |
| 500 | Student visa | Generally not accepted |
| 417 462 | Working holiday visas | Generally not accepted |
The longer your visa has to run and the clearer the pathway to permanent residency, the more lenders will consider your application. A visa with six months remaining is viewed very differently from one with four years remaining.
Subclass 491 Visa: Regional Property Advantages
The Subclass 491 Skilled Work Regional (Provisional) visa is one of the most underutilised pathways to property ownership for visa holders in Australia. At Laxmi Home Loans, we have assisted multiple 491 visa holders in purchasing property across regional New South Wales and Victoria, including Dubbo, Newcastle, and Orange in NSW, and Melton, Lara, and Geelong in Victoria, as well as numerous suburbs across the ACT and NT.
There are two important advantages that many 491 holders are not aware of when it comes to property purchasing.
No Foreign Buyer Stamp Duty Surcharge in ACT and NT
The Australian Capital Territory and the Northern Territory do not apply a foreign buyer stamp duty surcharge, provided you meet specific local residency requirements. This is a significant saving compared to states like New South Wales and Victoria where the surcharge can reach 8% of the property value. If you hold a 491 visa and are living and working in the ACT or NT, you should speak with your conveyancer about whether you qualify for the surcharge exemption before committing to a purchase.
FIRB in Eligible Regional Areas
In many cases, 491 visa holders purchasing property in their designated regional area can access more straightforward FIRB pathways, and in some scenarios involving purchasing with a citizen or permanent resident spouse, FIRB approval may not be required at all. Requirements differ by state and individual circumstances. Always confirm with your conveyancer before exchanging contracts.
Our team currently has active applications for visa holder clients purchasing in Austral NSW, Gilead NSW, and Redbank Plains QLD. We have successfully assisted 491 visa holders in Dubbo, Newcastle, and Orange in NSW, and in Melton, Lara, and Geelong in Victoria. If you are a 491 holder and searching for a mortgage broker near you who understands regional lending, our Nepali-speaking team is ready to help.
Interest Rates for Non-Residents and Visa Holders
If you are a sole applicant on a temporary visa or a non-resident borrower, you will generally pay a higher interest rate than standard borrowers. The rate difference varies between lenders and depends on your visa type, income source, and loan structure.
This premium reflects the additional risk the lender takes when the borrower does not hold permanent residency. If your circumstances change and you leave Australia, the lender’s security over the property remains, but enforcement is more complex.
If you are purchasing jointly with an Australian citizen or permanent resident spouse and meet standard lending criteria, you may access standard interest rates through mainstream lenders. This is one of the most significant advantages of applying jointly.
Foreign Income and Currency Shading
If you earn income in a foreign currency, most Australian lenders will reduce or shade that income when calculating your borrowing capacity. The typical shading applied is 10% to 30% of your foreign income. This means if you earn the equivalent of $100,000 AUD in a foreign currency, the lender may only count $70,000 to $90,000 in your serviceability calculation.
This shading exists to account for currency fluctuation risk. If the Australian dollar strengthens significantly against your income currency, your repayment obligations increase in real terms. Lenders build a buffer to protect against this scenario.
If you earn income in Australian dollars through Australian employment, no shading applies. This is an important distinction for visa holders who are employed locally versus those earning overseas income.
One of the most common mistakes we see is visa holders approaching only one or two major banks and accepting a decline as a final answer. Different lenders have very different policies on visa types, foreign income, and property types. The right lender for your visa and income structure exists. The key is knowing which one to approach and how to present your application. As a Nepali mortgage broker with offices in Merrylands NSW and a national client base, Laxmi Home Loans is a trusted mortgage broker near you regardless of which state or territory you are buying in. We speak English, Nepali, and Hindi and have specific experience helping South Asian visa holders across NSW, VIC, QLD, ACT, and NT.
What About the 95% LVR Exception?
If you hold an eligible temporary visa and you are purchasing a property jointly with your spouse who is an Australian citizen or permanent resident, some lenders will assess your application at standard residential lending criteria. This means:
- A deposit as low as 5% may be accepted. LMI may apply.
- Standard interest rates apply rather than any non-resident premium
- Lenders Mortgage Insurance may be available, reducing the deposit barrier
- The application is assessed the same way as a standard owner-occupied purchase
Not all lenders offer this exception. Eligibility depends on the visa subclass, the lender’s credit policy, and the income profile of both applicants. A broker can identify which lenders apply this exception and whether your circumstances qualify.
Practical Steps to Prepare Your Application
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1
Check your FIRB obligations. Determine whether you need FIRB approval before purchasing. This depends on your visa status, whether you are buying with a citizen or permanent resident, and the type of property you are purchasing. FIRB approval should be in place before you sign a contract.
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2
Calculate your true deposit requirement. Include the purchase price deposit, stamp duty (including any foreign surcharge), FIRB application fee, legal costs, and a buffer for unexpected costs. The total funds required will be significantly higher than the deposit percentage alone.
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3
Gather your documentation. You will need your visa grant notice, passport, Australian tax file number, payslips or income evidence, bank statements, and an explanation of the source of your deposit funds. If you earn foreign income, additional documentation from your overseas employer may be required.
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4
Understand your borrowing capacity. Use our borrowing capacity calculator for an initial estimate, then book a consultation for a full assessment based on your actual income, visa, and deposit position. You can also read our guide on how banks calculate borrowing power.
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5
Work with a broker before approaching lenders. Each formal credit application leaves an enquiry on your credit file. Too many enquiries in a short period can reduce your credit score and make approval harder. A broker can identify the right lender for your circumstances without triggering unnecessary enquiries.
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6
Obtain pre-approval before searching for property. Pre-approval gives you a realistic budget, demonstrates to vendors that you are a serious buyer, and reduces the risk of committing to a property you cannot finance.
Can Temporary Visa Holders Access Government Schemes?
Temporary visa holders are not eligible for the federal government First Home Guarantee (5% deposit with no LMI) or the Family Home Guarantee. These schemes are available to Australian citizens and permanent residents only. This applies to all temporary visas including the 482, 491, 820, 485, and bridging visas.
State and territory first home buyer grants and stamp duty concessions also generally require citizenship or permanent residency. Do not factor government scheme benefits into your budget unless you have confirmed your eligibility directly with a broker or the relevant government body. If you are on a partner visa and your spouse is a citizen or permanent resident, your spouse may qualify individually. Talk to your conveyancer about how the purchase can be structured.
You can read more about government schemes for eligible buyers in our guide: Government Schemes for First Home Buyers in Australia.
What Happens to the Loan If You Leave Australia?
This is a question many visa holders ask, and it is a valid one. If your visa expires or you choose to leave Australia, your mortgage obligations do not disappear. The loan continues, and repayments must still be made. If you are unable to maintain repayments from overseas, the lender can take action against the property.
If you are a temporary resident who purchased an established dwelling, FIRB conditions typically require you to sell the property when you depart. The sale proceeds can be used to repay the loan. If you hold a new dwelling or an investment property, you may be permitted to retain it subject to FIRB rules at the time.
It is important to discuss your exit strategy with both your broker and a migration agent before committing to a purchase.
Comparing Your Loan Options: Specialist vs Mainstream Lenders
| Consideration | Major Banks | Specialist Lenders |
|---|---|---|
| Visa types accepted | Limited to specific subclasses | Broader acceptance across more visa types |
| Maximum LVR | Typically 70% to 80% | Up to 85% in some cases |
| Interest rates | Standard with premium for non-residents | Higher, reflecting specialist risk |
| Foreign income treatment | 10% to 30% shading applied | Varies, may be more flexible |
| FIRB assistance | Limited guidance | Brokers experienced in FIRB process |
| Application flexibility | Rigid automated criteria | Manual assessment, case by case |
Important: No lender is universally the best option for visa holders. The right lender depends on your specific visa subclass, income structure, deposit, and the type of property you are purchasing. This is exactly where an experienced broker adds genuine value. We compare options across our panel of 50 plus lenders to find the most suitable match for your situation.
Understanding LVR and Why It Matters for Visa Holders
Loan-to-Value Ratio (LVR) is the percentage of the property’s value that you are borrowing. If a property is worth $800,000 and you borrow $600,000, your LVR is 75%. Most specialist lenders cap non-resident and visa holder loans at 80% LVR, which means you need at least a 20% deposit.
A lower LVR reduces the lender’s risk and can also result in a lower interest rate. If you can contribute a larger deposit, your application becomes more competitive and you have access to a wider range of lenders. You can read more about how LVR works in our guide: What Is LVR and How Does It Affect Your Home Loan?
Frequently Asked Questions
Yes. Temporary visa holders can buy property in Australia, subject to FIRB approval in most cases. You are generally permitted to purchase a new dwelling, an off-the-plan property, or vacant land without restriction. Purchasing an established dwelling as a temporary resident requires FIRB approval and comes with a condition to sell when you leave Australia.
In most cases, yes. If you are a temporary visa holder or a foreign national, you will need Foreign Investment Review Board (FIRB) approval before purchasing residential property in Australia. The main exception is if you are purchasing jointly with your Australian citizen or permanent resident spouse, in which case FIRB approval may not be required depending on the property type. FIRB approval should be obtained before you exchange contracts.
Most lenders require a minimum deposit of 20% to 30% for sole applicants on a temporary visa, corresponding to a maximum LVR of 70% to 80%. If you are purchasing jointly with an Australian citizen or permanent resident spouse, some lenders will consider applications with as little as 5% deposit at standard rates. You also need to account for stamp duty, any foreign surcharge, FIRB fees, and legal costs on top of the deposit.
Lenders generally favour visa types that show a clear pathway to permanent residency or stable long-term employment. Partner visas (820/801 and 309/100), skilled work visas (482 and 457), and bridging visas tied to permanent residency applications are commonly accepted. Student visas (500) and working holiday visas (417 and 462) are generally not accepted by standard lenders. Eligibility varies between lenders.
Yes, in most cases. As a sole applicant on a temporary visa, you will generally pay a higher interest rate than standard residential rates. The difference varies between lenders and depends on your visa type and income structure. If you are purchasing jointly with an Australian citizen or permanent resident spouse and meet standard criteria, you may access standard interest rates through mainstream lenders.
Income shading is the practice of lenders reducing or discounting foreign currency income when calculating your borrowing capacity. Typically 10% to 30% of your foreign income is disregarded to account for currency fluctuation risk. If you earn in Australian dollars through local employment, no shading applies. This distinction can have a significant impact on how much you are able to borrow.
LMI waivers for professionals such as registered nurses, doctors, and accountants generally require the applicant to be an Australian citizen or permanent resident. LMI is also generally not available to non-resident borrowers through specialist lenders. If you are purchasing jointly with a citizen or permanent resident spouse through a mainstream lender, LMI may be available under standard criteria. You can read more about LMI waivers at laxmihomeloans.com.au/lmi-waiver-for-professionals-australia/.
Most Australian states charge an additional stamp duty surcharge on property purchases by foreign citizens and temporary residents. This is on top of standard stamp duty. For example, New South Wales and Victoria each charge a surcharge of 8% of the property value. Queensland charges 7%. This can add tens of thousands of dollars to the cost of purchasing property and must be factored into your total budget before you begin searching.
Yes. Subclass 482 (Temporary Skill Shortage) visa holders are generally viewed favourably by lenders because the visa is employer-sponsored and demonstrates stable, long-term employment in Australia. Most lenders will consider applications from 482 visa holders with a minimum 20% deposit. If purchasing jointly with an Australian citizen or permanent resident spouse, you may qualify for standard lending criteria at some lenders.
If you purchased an established dwelling as a temporary resident under FIRB approval conditions, you are generally required to sell that property when your visa expires and you leave Australia. If you purchased a new dwelling or an investment property, different rules may apply. You should confirm the specific conditions attached to your FIRB approval and seek legal advice before committing to a purchase.
No. The First Home Guarantee and Family Home Guarantee are available to Australian citizens and permanent residents only. Temporary visa holders are not eligible for these schemes. State-based first home buyer grants and stamp duty concessions also typically require citizenship or permanent residency. Eligibility should be confirmed before factoring any government scheme into your financial planning.
Foreign nationals who are not Australian residents are generally restricted to purchasing new dwellings, off-the-plan properties, or vacant land intended for construction. Purchasing established (second-hand) dwellings as a non-resident is heavily restricted under FIRB rules. Temporary residents may purchase one established dwelling for use as a primary residence, subject to FIRB approval and a condition to sell on departure.
Purchasing jointly with an Australian citizen or permanent resident spouse significantly improves your lending options. In many cases, FIRB approval is not required, standard interest rates apply, and lenders may consider the application at up to 95% LVR with LMI. The overall lending risk is lower because at least one borrower holds permanent status in Australia. This is one of the most important factors in visa holder lending assessments.
Lenders require evidence that your deposit funds are genuine and lawfully obtained. You will typically need bank statements covering at least three to six months, evidence of savings accumulation over time, and in some cases a statutory declaration explaining the source of funds. If the deposit was gifted or transferred from overseas, additional documentation may be required. Anti-money laundering regulations apply to all property purchases in Australia.
Using a mortgage broker is strongly recommended for visa holders and non-residents. The lending landscape for this group is complex, and different lenders have very different policies on visa types, foreign income, and property types. A broker can identify the most suitable lender for your circumstances, prepare a strong application, and avoid unnecessary credit enquiries that could reduce your credit score. At Laxmi Home Loans, we offer services in English, Nepali, and Hindi and have specific experience helping South Asian visa holders navigate this process.
Ready to Discuss?
If you hold a visa and are considering buying property in Australia, speak with our team before approaching any lender. As a Nepali mortgage broker near you, we will assess your visa, income, and deposit position honestly and tell you exactly what is achievable and with which lenders. Services available in English, Nepali, and Hindi.
Book a Free ConsultationThis article is for general information purposes only and does not constitute financial, legal, or migration advice. FIRB rules, stamp duty surcharges, lending criteria, and lender policies are subject to change. Information contained in this article reflects general market conditions and does not account for your individual circumstances. Please consult a licensed mortgage broker, solicitor, and migration agent for advice tailored to your situation. Laxmi Home Loans does not guarantee loan approval or FIRB approval. All lending is subject to lender assessment and eligibility criteria.
Mero Chino Groups Pty Ltd T/As Laxmi Home Loans | ABN 76 169 013 012 | Credit Representative Number 476974 | Authorised under Australian Credit Licence Number 383640
