TOP QUALITY RESIDENCES Works Only Under These Conditions

Just because you certainly 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 does not need to be that difficult.

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

A non resident can be split 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 subsequently below.

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

Temporary residents of Australia could be approved home loan finance because of their purchase. Whilst some lenders won’t 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 can be approved up to 95% if purchasing having an Australian citizen, NZ citizen or perhaps 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 necessary.

2) Australian Citizens Living Overseas Home Loan:

Australian citizens living abroad can be approved home loan finance even though not resident in Australia. The maximum LVR is 95% therefore a 5% deposit plus costs is required. However, 95% LVR is very difficult to obtain with the banks being convenient 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.

Ki Residences Sunset Way What is required to get a home loan approved as a Non Resident?

Normal lending policy applies regarding income, stability of employment, asset position and clear credit history. The only real difference is LVR limitations with non residents being necessary to abide by 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.

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