Best Home Loans For People On A 457 Visa
The 457 Visa is a program that allows for skilled overseas workers to obtain sponsorship and employment in Australia for up to four years. This visa makes job hunting and living easier for foreigners looking to work and live temporarily in the country.
If you are considering moving to Australia temporarily to work, you may be wondering if you are limited to renting an apartment or flat. You may be wondering if, with a 457 Visa, you are allowed to buy a home while staying there, and if so, are you able to receive financing. The good news is yes, you can buy a home even while you staying temporarily in Australia on a 457 Visa, and you can get financing for purchasing the home also. You can even buy a home or property for investment purposes. The bad news is that there are some limitations and requirements to do so.
Banks can have stringent policies for lending to new migrants. They will carefully examine your 457 Visa, the time left on it as well as what country you are from.
Before you can buy residential property with a 457 Visa, the FIRB (Foreign Investment Review Board) approval will be required if you are not a permanent resident. If you are purchasing a new property from a developer who has pre-approval to sell to temporary residents then you are not required to get FIRB approval. It generally does not take the FIRB more than 30 days to make a decision on an application. Keep in mind that you must have a particular piece of property in mind before you can apply for FIRB approval. You cannot apply, get approval, and then find a property.
There are three types of approval you can seek, each with its own set of eligibility criteria.
Established Residential Dwelling
* Must be used as your place of residence.
* You will not rent any part of the property.
* When you stop living there, you must sell the property.
* If your visa changes or expires, you must notify the FIRB.
* If you stop living at the dwelling, or if you sell it, you must notify the FIRB.
Vacant / Undeveloped Land
* The property must be a single block.
* You must have a house built on the land within 24 months.
New Dwelling
* You must purchase the property from the developer.
* The dwelling must not have been previously occupied for more than 12 months.
You will also want to have at least 5 percent of the cost of the home saved in an account bearing your name if you intend to borrow more than 85 percent of the value of the property. You will also need to prove that you have enough money to cover the additional fees that will be assessed for buying property. They want to see that you are able to save money and will not be too much of a risk for them. Unfortunately, you cannot receive any government benefits or the first home owners grant. The length of your employment is a factor in determining how much you will be allowed to borrow and you will need to provide evidence of regular income. Borrowing with an Australian citizen will also increase the amount that a bank will allow you to borrow.
Australian residents who are in the country on a 457 Visa are usually only allowed to borrow up to 80 percent of a property’s value. That means that you may be able to get approval for a loan, but you will need a down payment of at least 20 percent plus additional costs such as stamp duty.
Related posts:
- FIRB Approval – Definition & Requirements
- Home Loans For Non-Resident Australians
- Advice for Overseas Home Buyers
- Foreign Investment Loans
- How Non Residents can get a Home Loan in Australia
- Interest Only Home Loans
- Beat Home Loans
- Home Loan For Migrants
- SA Home Loans
- HSBC Market Linked Home Loan
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.25% after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
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