Buying a home in Australia as a non-permanent resident can feel complex, especially when you are dealing with visa rules, foreign income, and different lending policies. You might already understand how the Australian property market works, but the moment residency status enters the picture, the pathway to a loan becomes far more detailed. That is where careful planning and a clear understanding of the process can make a real difference.
At Unconditional Finance, we work with many borrowers who live and work in Australia on temporary visas and are exploring home loans for non-permanent residents, which some lenders may assess under their non-resident lending policies. Each situation is different, and every lender approaches non-permanent residency with its own level of risk appetite.
Some lenders may consider your application, others may not, and small details such as visa type or income structure can influence your options. This guide explains what you need to know before applying, how lenders assess non-permanent residents and the key steps that may help you prepare for a non-resident home loan application.
Why Residency Status Matters for Home Loan Applications
Your residency status is one of the first factors lenders check because it determines what you are legally allowed to buy and how stable your long-term financial position may appear. Lenders must follow responsible lending obligations under ASIC guidelines, which means they need to verify that you can comfortably manage repayments now and into the future.
A temporary visa does not prevent you from applying for a home loan for non-permanent residents, but it may influence:
- which lenders may consider your application
- how they verify your income and employment
- the deposit size you might need
- what type of property you are permitted to purchase
- whether FIRB approval is required
This is why early planning helps. Understanding lender expectations can prevent delays later when you are already partway through a property purchase.
Visa Categories Some Lenders May Consider
Lenders use visa types as part of their visa requirements for home loans, helping them understand your long-term ability to remain employed and stay in Australia. Eligibility varies between lenders, but some may consider applicants holding visas such as:
- Temporary Skill Shortage visa (TSS 482)
- Skilled Regional visas (491 or 494)
- Partner visas (820/801 or 309/100)
- Skilled permanent pathway visas (186, 189, 190)
- Temporary Graduate visa (485), depending on employment stability
Having work rights, a stable income, and sufficient time remaining on your visa are often key considerations. Some lenders may prefer applicants who have at least six to twelve months remaining on their current visa, while others may assess applications with shorter remaining periods depending on supporting documentation.
Visa acceptance can change without notice, which is why confirming the current policy before applying is important.
FIRB Requirements for Non-Permanent Residents
The Foreign Investment Review Board (FIRB) regulates property purchases by foreign individuals and temporary residents in Australia. Many non-permanent residents require FIRB approval before buying residential property.
FIRB may allow temporary residents to purchase:
- a new dwelling
- off-the-plan property
- established property to live in as a principal place of residence, depending on visa type
- vacant land for construction, with conditions on development timelines
You will need approval before settlement, and FIRB fees vary based on the purchase price. Your solicitor or conveyancer can help you understand your FIRB obligations, as these are legal requirements separate from lender policy.
State-Based Foreign Purchaser Surcharges
In addition to FIRB fees, some states apply a foreign purchaser stamp duty surcharge. This surcharge is separate from normal stamp duty and is determined by each state or territory.
Several states, including New South Wales, Queensland, Victoria, South Australia, Western Australia and Tasmania, currently apply a foreign purchaser surcharge, while some jurisdictions do not. Each state has its own rate, rules and possible exemptions, which can change over time. Your solicitor can explain which charges apply to your situation based on your residency status and property type.
Understanding these costs early helps you set a realistic budget and avoid surprises at settlement.
Property Types Available to Temporary Residents
Temporary residents do not have the same property eligibility rules as Australian citizens or permanent residents. What you can purchase often depends on your visa, FIRB approval and state revenue rules.
Some scenarios may include:
- New or off-the-plan dwellings, which FIRB generally allows
- Established homes, depending on your visa and intended purpose (for example, living in the property yourself)
- Vacant land, where you must build within a set timeframe
- House-and-land packages, which may require separate approval for the land and construction contract
Before making an offer, speak with your solicitor to ensure the property type meets FIRB and state requirements. This step protects you from contract issues later.
Deposit and LVR Requirements for Temporary Residents
Many non-permanent residents ask how much deposit they need and how to navigate the deposit barrier in the current market. Some lenders may require a larger deposit for temporary residents than they would for citizens or permanent residents. This can be due to perceived risk, visa stability and restrictions around the lender’s mortgage insurance.
Some lenders may limit the loan-to-value ratio (LVR) to a lower maximum. For example, some temporary residents may need a deposit of 20% or more, depending on the lender’s policy. Policies can differ significantly between lenders and may change without notice.
If you are purchasing jointly with a citizen or permanent resident, the required deposit may be different because the risk profile changes.
Verification of Funds and Overseas Money Transfers
Australian lenders must meet anti-money laundering and counter-terrorism financing (AML/CTF) obligations, so they need to see clear evidence that your deposit funds are legitimate and traceable.
You may be asked to provide:
- bank statements showing how your savings accumulated
- documents supporting any large deposits or transfers
- translations for foreign-language statements
- proof of ownership for overseas accounts
- foreign currency conversion details
If your deposit is coming from overseas, it helps to plan the transfer ahead of time because international banking timelines can vary.
Income and Employment Requirements for Non-Permanent Residents
Employment stability is one of the main factors lenders consider. Your visa must allow you to work in Australia, and lenders may look at:
- how long you have been in your current job
- whether your employment is full-time, part-time or fixed-term
- your industry and occupation stability
- recent payslips, employment contracts and tax documents
Some lenders may accept fixed-term contract workers if there is a history of ongoing employment or renewal. Others may prefer permanent roles. The assessment depends on the lender’s policy.
What matters most is showing a consistent, reliable income that continues beyond your visa period, or evidence that renewal is likely based on employment history.
How Lenders Assess Foreign Income
If you earn income overseas, lenders may complete a foreign income home loan assessment that differs from how they treat Australian income. This is due to currency fluctuations and verification requirements.
Some lenders may:
- accept only certain currencies
- apply a “shading” percentage to reduce the assessed income to manage exchange rate risk
- require overseas tax returns, employment letters or foreign payslips
- limit reliance on foreign income for servicing
Each lender sets their own rules. If foreign income is a key part of your application, preparing documentation early can help prevent delays.
Credit History, Liabilities and Overseas Debts
Australian lenders assess your financial obligations locally and overseas. This includes:
- Australian credit reports through Equifax, Illion or Experian
- declared overseas loans, credit cards or student debts
- evidence of repayments and balances
- liability statements in your local currency
Some lenders may request overseas bank statements or foreign credit history reports if they need to verify your debt position. This step helps them form a clear picture of your commitments.
Not disclosing overseas debts can affect the integrity of your application and increase the risk of loan rejection, so full transparency is important.
Borrowing Capacity Considerations for Temporary Residents
Your borrowing capacity as a temporary resident may differ from that of an Australian citizen because lenders may apply additional risk measures when assessing non-permanent residents.
Some factors that may influence the loan amount include:
- foreign income shading
- deposit size or maximum LVR limits
- visa type and expiry date
- whether the application is joint
- state-based duties or surcharges
Each lender calculates borrowing capacity using its own servicing model. Small differences in income acceptance or risk assessment can lead to very different borrowing outcomes.
Documentation Checklist for Non-Permanent Resident Applicants
You will typically need to prepare more documents than a standard home loan applicant. Having them ready helps the process run more smoothly.
Common documents include:
- passport, current visa and identity documents
- employment contract and recent payslips
- Australian or overseas tax returns
- bank statements for local and overseas accounts
- savings history and source-of-funds verification
- foreign income documentation, translated if required
- contract of sale and FIRB approval, if applicable
These documents help lenders form a complete picture of your financial position.
Key Risks to Consider Before Applying as a Non-Permanent Resident
Temporary residents may face specific mortgage risks when buying a property in Australia. Being aware of them can help you plan ahead and avoid pressure near settlement.
Some considerations include:
- visa expiry timing and potential changes to work rights
- currency movement if you rely on overseas income
- FIRB approval processing times
- possible updates to state revenue rules or foreign surcharges
- settlement risk for off-the-plan contracts
- delays with overseas fund transfers
None of these risks prevents you from applying, but preparing early and reviewing your options carefully can reduce unexpected challenges.
Legal, Immigration and Tax Considerations Outside Lending
Some parts of the purchase process sit outside the role of a mortgage broker in Sydney. You may need additional professional advice to ensure you meet all regulatory requirements.
You may need to speak with:
- a solicitor or conveyancer for FIRB, contracts and stamp duty
- the state revenue office for surcharge details
- a registered tax adviser for investment ownership or foreign income tax implications
- a registered migration agent for visa-related questions
A mortgage broker cannot advise on legal, tax or immigration matters, so these specialists play an important part in the process.
How a Mortgage Broker Supports Non-Permanent Resident Borrowers
Applying for a loan as a non-permanent resident involves more moving parts than a standard application. Our role is to help you understand these requirements clearly and compare lenders that may consider your situation.
We may help by:
- reviewing lender policies for your visa type
- explaining how your income may be assessed
- outlining documentation requirements
- identifying lenders that consider foreign or mixed income
- coordinating timelines so you meet contract and FIRB conditions
- supporting you through the application and settlement process
We do not guarantee approval, but we can help you understand what may be possible based on lender policies and your current circumstances.
If you’d like to see what options may be available for your situation, our Sydney mortgage brokers can help you compare policies and guide you through the next steps.
Disclaimer: The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention are taken in its preparation, any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates are subject to change. Approved applicants only.
Frequently Asked Questions (FAQs)
Most Australian first-home buyer grants and guarantee schemes are limited to citizens and permanent residents, so many temporary residents will not qualify. In some cases, a joint purchase with an eligible citizen or permanent resident may allow access, but this depends on the specific scheme rules and your circumstances.
It is important to check the latest criteria on government sites such as Housing Australia or your state revenue office before relying on any scheme.
Some lenders may price loans for non-permanent residents differently due to their internal risk settings, while others may offer similar rates to those available for citizens and permanent residents. The final rate you are offered usually depends on the lender, product type, LVR, loan purpose and your overall profile.
Comparing a range of options through a Sydney mortgage broker, such as Unconditional Finance, can help you understand how different lenders may view your application.
If your visa changes to permanent residency or citizenship after settlement, your existing loan normally continues under its current contract terms. However, you may become eligible for a wider range of products or lenders if you later choose to refinance.
If your visa situation becomes less stable, lenders may review your circumstances more closely if you ask for changes to your loan, such as increases or restructures.
Yes, many borrowers who started on a temporary visa later review their home loan once they become permanent residents or citizens. At that point, more lenders and products may be available, which could change your borrowing capacity or the features you can access.
Any refinance will still be subject to the new lender’s assessment, current policy and your financial position at the time.
Some lenders may consider guarantor arrangements or additional security for non-permanent resident borrowers, particularly where the guarantor is an Australian citizen or permanent resident. This area is highly policy-driven, and not all lenders will accept it for temporary visa holders.
A broker can help you understand which lenders may consider guarantors in your situation and what safeguards are required for the guarantor.