Just because you are a non resident of Australia does not mean you cannot purchase property in Australian and arrange mortgage finance for that purchase. Ki Residences Singapore Whilst mortgage approval criteria for non residents is stricter than for permanent residents/citizens, with the right advice the process doesn’t need to be that difficult.

What is a non resident for the intended purpose of this article?

A non resident can be divided into three broad categories;

1) Temporary resident currently residing in Australia without a permanent resident visa,

2) Australian Citizen living overseas (Australian Expat), or

3) Foreign Citizen living overseas.

Each one of these categories calls on completely separate policies, rules and procedures from both a legislative perspective and a banking perspective. Each category is dealt in turn below.

1) Temporary residents currently residing in Australia with out a permanent resident visa:

Temporary residents of Australia can be approved home loan finance because of their purchase. Whilst some lenders will not lend to temporary residents there are lots of that will and then the key to getting approved is applying with the right bank!

Temporary residents could be approved around 95% if purchasing having an Australian citizen, NZ citizen or a permanent resident. If however all applicants are non residents a maximum LVR of 80% applies and a 20% deposit plus costs like stamp duty and legals is required.

2) Australian Citizens Living Overseas MORTGAGE LOAN:

Australian citizens living abroad can even be approved home loan finance despite the fact that not resident in Australia. The utmost LVR is 95% therefore a 5% deposit plus costs is required. However, 95% LVR is quite difficult to obtain with the banks being more comfortable at the 90% LVR mark requiring a 10% deposit plus costs.

Please be aware that Australian Permanent Residents living overseas are not treated like Australian Citizens living overseas and are categorized as category 3 below UNLESS purchasing with an Australian Citizen.

3) Foreign Citizens Living Overseas Mortgage:

Foreign citizens living abroad (including Australian permanent residents living overseas) are limited by 80% LVR thereby requiring a 20% deposit plus costs.

What is required to get yourself a home loan approved as a Non Resident?

Normal lending policy applies with respect to income, stability of employment, asset position and clear credit history. The only difference is LVR limitations with non residents being required to stick to an LVR of 80% for some lenders. As above though, 90% and also 95% is available for non residents providing the application form is lodged to the proper bank with favourable non resident policy.

Craig Vaughan is a Non Resident Home Loan expert. His company MAP HOME LOANS specialises in mortgage loans for Australian citizens living abroad and also temporary residents living in Australia. If your home loan has declined or you have been told that a maximum LVR of 80% applies, contact MAP to see should they can assist you apply for a mortgage.