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 proper 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 surviving in Australia with out a permanent resident visa:

Temporary residents of Australia can be approved home loan finance for 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 proper bank!

Temporary residents can be approved up to 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 maximum LVR is 95% therefore a 5% deposit plus costs is necessary. 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.

Ki Residences Singapore Please note that Australian Permanent Residents living overseas are not 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 yourself a mortgage loan approved as a Non Resident?

Normal lending policy applies regarding 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 also 95% can be acquired for non residents providing the application form is lodged to the right bank with favourable non resident policy.

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

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