Buying Property in Australia as a Non-Resident: Your Guide to Non-Resident Home Loans

Looking to buy property in Australia while living overseas or holding a temporary visa? A non-resident home loan could be your key to entering the Australian market—even if you’re not a citizen or permanent resident.

Every year, thousands of Australian expats, foreign nationals, and temporary visa holders secure non-resident home loans to invest in Australian real estate or plan their future move. If you’re looking to do the same, this guide will walk you through how non-resident loans work, who can qualify, and what the application process involves.

What Is a Non-Resident Home Loan?

A non-resident home loan is a mortgage designed for borrowers who live outside Australia or are not Australian citizens or permanent residents. This includes:

• Foreign citizens
• Temporary visa holders
• Australian expats
• New Zealand citizens living abroad

Because these borrowers fall outside the typical risk profile for most lenders, non-resident home loans often come with stricter lending criteria, reduced borrowing capacity, and the need for additional documentation. Foreign buyers may also need approval from the Foreign Investment Review Board (FIRB) before purchasing property.

How Do Non-Resident Home Loans Work?

Structurally, non-resident home loans offer many of the same features as standard home loans, including:

• Variable, fixed, or split rate options
• Redraw facilities and offset accounts
• Loan terms of up to 30 years
• Interest-only repayment options

However, the approval process includes extra checks. Here’s what lenders generally consider:

• Residency status and visa type
• Proof of income, often converted to AUD with a currency risk buffer
• FIRB approval, if required
• Larger deposits, often between 30–40%
• Documentation in English or officially translated

Some lenders may offer specific loan products for non-residents, including multi-currency support and professional discounts.

Pros and Cons of Non-Resident Home Loans

✅ Pros:

• Expats may borrow up to 80% of the property value, with some lenders offering up to 90% LVR, provided Lenders Mortgage Insurance (LMI) is taken.
• Loan solutions tailored for non-residents, including foreign income support
• Access to Australia’s stable and high-performing property market

❌ Cons:

• FIRB approval required for most foreign buyers, adding time and cost
• Limited lender options as not all banks cater to non-residents
• Complex income verification, especially for less common currencies

Who Can Qualify for a Non-Resident Home Loan?

You may be eligible for a non-resident mortgage if you fall into one of these categories:

• Australian citizens living overseas
• Permanent residents and New Zealand citizens living abroad
• Temporary visa holders, including 457, 482, 485, 820, and 309 visas
• Foreign nationals living outside Australia

Each category may face different deposit requirements, documentation standards, and borrowing limits.

General Requirements for Non-Resident Applicants

To apply for a non-resident home loan, you’ll typically need:

• To be 18 years or older
• A valid passport, visa (if applicable), and photo ID
• Proof of stable income (generally from a strong currency country like USD, GBP, EUR)
• Overseas income documents (payslips, tax returns, accountant letters)
• Clean credit history
• FIRB approval for most temporary residents and foreign nationals
• Deposit of 30–40% in most cases
• Evidence of savings and assets
• The property must generally be in a Category 1 or 2 postcode

Important Update: Temporary Ban on Foreign Buyers of Established Dwellings

As of 1 April 2025, the Australian Government has introduced a two-year ban—effective until 31 March 2027—prohibiting foreign persons (including non-residents, temporary visa holders, and foreign-owned companies) from purchasing established (previously owned) residential properties.

This measure is part of a national effort to improve housing affordability and increase availability for local buyers.

What You Can Still Buy:

• Newly built dwellings (never previously sold or occupied)
• Vacant land (to build a new dwelling, subject to FIRB approval)

The policy is scheduled for review in 2027.

Exceptions to the Ban:

The following buyers are exempt from this restriction:

• Australian citizens (even if living overseas)
• Permanent residents of Australia
• New Zealand citizens
• Spouses of Australian citizens, permanent residents, or New Zealand citizens, when buying together as joint tenants
• Foreign investments that increase housing supply or directly support housing availability

Note: Temporary residents can still apply to purchase new dwellings or vacant land but must apply for FIRB approval. Limited exceptions apply. Media Release

How to Apply for a Non-Resident Home Loan

The process can be more complex than applying for a standard mortgage, but with the right support, it’s entirely manageable.

1. Speak with a Specialist Broker- Not all lenders accept non-resident applications. A broker can find the right loan for your situation.
2. Assess Your Borrowing Power- Your broker will evaluate your income (including foreign income), deposit, and visa status.
3. Gather Documents-

You’ll need:

1. 1. Passport and visa
   2. Income proof (translated if needed)
   3. Deposit evidence
   4. FIRB approval (if required)

4. Apply for Pre-Approval- Your broker submits your loan application and helps you secure pre-approval.
5. Get FIRB Approval- Most non-residents must get Foreign Investment Review Board approval before buying.
6. Find a Property- Start house hunting once pre-approval and FIRB clearance are in place.
7. Make an Offer & Exchange Contracts- Negotiate price, pay the deposit, and exchange signed contracts. If you plan to sign the contract prior to the cooling off period, ensure that the contract of sale includes the clause “subject to FIRB approval”, otherwise you’ll be breaching the law.
8. Get Formal Loan Approval- Your lender will finalise the loan after a property valuation.
9. Settle the Purchase- Your legal team completes final checks, and ownership is transferred on settlement day.

How much deposit do I need for a non-resident home loan?

The deposit required for a non-resident home loan will depend on the lender you choose, and the Loan-to-Value Ratio (LVR) they offer to non-residents. You can generally expect the LVR to be lower for a non-resident loan. In other words, the amount you can borrow is typically less with a non-resident home loan.

The lower the LVR is, the higher the loan deposit will be. For example, if the LVR is 70%, you will need to provide 30% of the property value for the deposit, and 40% for a 60% LVR.

Other non-resident home loan costs to consider

Additional costs outside loan deposit include:

• FIRB application fees: Non-residents must apply to the Foreign Investment Review Board (FIRB) before buying property. The application fee varies depending on the property’s value.
• Stamp duty costs: This is a state government tax calculated based on the purchase price of the property. As a non-resident, you may also be liable for a foreign purchaser surcharge. The rate and surcharge differ by state.

• Lenders mortgage insurance (LMI): I f your deposit is less than 20%, you may be required to pay LMI—this can cost thousands depending on the loan size and deposit.

• Legal fees for conveyancing: You’ll need a solicitor or conveyancer to handle the legal paperwork. Fees typically range from $1,000 to $3,000, depending on complexity.
• Building and Pest Inspections: These optional but highly recommended inspections can cost between $400 and $800.
• Loan Application and Valuation Fees: If you’re taking out a mortgage, the lender may charge an application fee (approx. $500) and valuation fee (approx. $200–$600).

• Land title and registration fees: This includes registering the property title and mortgage, usually a few hundred dollars, varying by state.

• “Ghost tax”, which is a minimum $5,000 per year levy if you fail to occupy or lease out your property for at least six months per year.

Final Thoughts

Entering the Australian property market as a non-resident may seem daunting, but it’s achievable with the right guidance. Whether you’re an expat planning for your return or a foreign investor seeking a stable market, a non-resident home loan can open the door to long-term opportunities.

Let us help you navigate the complexities and get your property plans on track. Speak to us today to get started.

 

Disclaimer: This blog offers general information on mortgages and finance for informational purposes only. It is not a substitute for personalized advice from a qualified mortgage professional or financial advisor. Use your discretion and seek professional guidance based on your individual circumstances.