Non Resident Home Loans
A non resident home loan in Australia refers to a type of mortgage designed for individuals who are non residents. Non residents typically include foreign investors and temporary visa holders.
Non Residents face some unique challenges when applying for a home loan including difficulty in proving income. As a result, some banks and lenders offer specialized non residents home loan products.
Any applicant that does not hold Australian Citizenship or Australian Permanent Residency can use a non resident home loan to purchase or refinance an owner occupied or investment property. The loan terms and conditions may vary but generally, they will require a larger down payment. What’s more they may have higher interest rates compared to traditional home loans.
Non Resident Requirements
Non residents in Australia generally need to obtain approval from the Foreign Investment Review Board (FIRB) before purchasing property. The FIRB is a government body responsible for reviewing and approving foreign investment proposals in Australia.
It’s essential to research and compare different lenders and loan products to find the best non resident home loan. Additionally, you should consult with a financial advisor and legal counsel to understand the tax and legal implications of owning property in Australia.
- Eligible borrowers include applicants without Australian Citizenship or Permanent Residency (FIRB might be required).
- Perfect for purchases, refinances, or cash-out options.
- For both PAYG and self-employed applicants.
- Prime options for clear credit history applicants with bad credit options also available (at higher rates and fees).
Maximum Loan Amount for a Non Resident Home Loan
Loan size limits and LVR parameters are listed below for cat 1 > 2 Locations only.
- LVR’s to 80% maximum loan $2,000,000
Acceptable Securities for a Non Resident Home Loan
- Residential & Rural Residential securities in Cat 1 >2 Locations – with a max land size of 25 acres (10 hectares)
- High Density Apartments from 50 m2 to a maximun of 75% LVR
- Residential units (with separate title) over commercial premises OK
Approved Country of Residence
Approved countries for residency include Australia, Canada, China, France, Germany, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines, Qatar, Saudi Arabia, Singapore, South Africa, South Korea, Switzerland, Taiwan, United Kingdom, United Arab Emirates, United States of America, and Vietnam.
Income Documentation for a Non Resident Home Loan
PAYG:
- 2 recent computer generated payslips not more than 1 month old or Bank Statements showing Salary Credits for last 3 months.
- Letter from employer on employers letterhead, dated and signed by an appropriate representative confirming length of employment and employment details (Payroll Officer/Manager, Human Resource Manager or Owner of the business).
Self Employed:
a) Evidence of Company registration
b) Minimum TWO of the following:
- Latest Business annual tax return
- Personal annual tax return (latest)
- Latest 1 year business financials
Identification:
Verification of identity – all borrowers and guarantors:
- Full colour, high resolution copy of Passport (including all Visa information pages)
- Copy of Secondary Government-issued Photo ID e.g Drivers Licence, Citizenship Card
- Marriage certificate or change of name (if applicable)
Translations
A written and signed translation from a member of a recognised independent body (e.g. NAATI – National Accreditation Authority for Translators & Interpreters)
Borrower Requirements:
- Credit Report from appropriate credit reporting agency issued by the country of residence
- FIRB approval, including solicitor’s certificate (if applicable)
