Mortgages For 457 Visa Holders

While we may not agree on your fondness for warm beer and horrible weather, Australians secretly love people from the UK, and outside of the cricket and rugby seasons, we’ve got a feeling that you feel the same.

In fact, you may already be sharing that love around (stop it!) and living it up in Australia on a temporary visa. What if we were to tell you though that you could get your own slice of the great Australian dream without being a citizen. Carry on reading to hear about mortgages for 457 Visa Holders!

Home Buying Rules

There are not too many restrictions from the government that will stop temporary residents wanting to buy a new or existing property to live in as long as you sell it if you leave.

If you are a foreign citizen living overseas and do not hold a temporary visa you can still purchase an investment property or buy to let. This includes new property, off the plan apartments and vacant land.

That’s because the Aussie government is all about directing foreign investment into increasing the housing supply and preventing a housing price bubble.

Australian government approval will be required, specifically, from the Foreign Investment Review Board (FIRB).

What types of mortgages are available in Australia?

– Principle & Interest Home Loan: Otherwise known as a repayment mortgage in the UK.

– Interest-only mortgage: These work in the same way as interest-only loans in the UK in that you pay only the interest on the loan.

– Flexible home loans: Some home loans are more flexible than others and allow you to make extra repayments and even set-up an offset account in order to reduce the interest payable.

Interest Rates

Like the UK, variable and fixed rates are both available in Australia. Fixed rates are available for up to five years with most banks, and up to 15 years with a couple of banks.

Larger interest rate discounts are also available if you are a skilled worker under a professional package.

What else you need to know?

First Home Owners Grant: People who are buying a newly-built property as their first home are eligible for a grant which varies from state to state. You may need to be a permanent resident or Aussie citizen to qualify. Or you can just get drunk and marry the closest Aussie that you can find. Whatever works for you.

Lenders Mortgage Insurance (LMI): UK residents will know mortgage insurance as Mortgage Indemnity Guarantee (MIG) and it works in exactly the same as it does in Australia. It’s basically a big one off fee if you borrow over 80% of the property value.

Why is a mortgage broker essential for temporary residents?

First of all, Australian banks are disorganised and ask silly questions and delay what should be a simple mortgage application process.

Brokers can do all of this brunt work for you and they usually do it all for free unless you repay your loan within the first two years.

They also have access to a wide panel of lenders to choose from and charge the same interest rate and fees as if you went to a bank directly. Some brokers such as the Home Loan Experts specialise in working with new migrants to Australia.

Australian houses don’t stay on the market for long so don’t wait too long to buy your down under pad.