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. 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.

Exactly what is a non resident for the purpose of this article?

A non resident can be divided into three broad categories;

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

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

3) Foreign Citizen living overseas.

Every 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 without a permanent resident visa:

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

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

2) Australian Citizens Living Overseas Home Loan:

Australian citizens living abroad can be approved home loan finance even though 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 aren’t treated like Australian Citizens living overseas and fall under category 3 below UNLESS purchasing having an Australian Citizen.

3) Foreign Citizens Living Overseas Mortgage:

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

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

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

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