How To Lose Money With TOP QUALITY RESIDENCES

Just because you certainly are a non resident of Australia will 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.

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

A non resident can be divided into three broad categories;

1) Temporary resident currently residing in Australia with out 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 surviving in Australia with out 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 many that will and therefore the key to getting approved is applying with the right bank!

Temporary residents can be approved up to 95% if purchasing with 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 Home 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 required. However, 95% LVR is very difficult to get with the banks being convenient at the 90% LVR mark requiring a 10% deposit plus costs.

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 a mortgage 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 difference is LVR limitations with non residents being required to adhere to an LVR of 80% for some lenders. As above though, 90% and even 95% can be acquired for non residents providing the application is lodged to the proper 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 house loan has declined or you have already been told a maximum LVR of 80% applies, contact MAP to see should they can assist you apply for a mortgage.