Property
Australia — Property: Mortgage Availability
Mortgage availability in Australia is straightforward for citizens and permanent residents but significantly more restricted for non-residents and temporary visa holders. Most major banks require Australian citizenship or permanent residency for standard terms; foreign buyers and many temporary visa holders face a smaller pool of lenders, larger deposit requirements (commonly 20-40%), and must also navigate FIRB's ban on foreign purchases of established dwellings.
Why this matters
It's essential to know the mortgage requirements and availability to ensure a smooth transition to owning a property in Australia -- non-resident and temporary-visa buyers should not assume they can borrow on the same terms as citizens/permanent residents.
Key facts
- Australian banks and lenders offer a range of mortgage products, but eligibility criteria differ sharply between citizens/permanent residents and non-residents/temporary visa holders.
- Most mainstream lenders require Australian citizenship or permanent residency for standard loan terms and lowest deposits; non-residents and temporary visa holders (e.g. subclass 457, 482, 485, 820, 309) are served by a smaller number of lenders with stricter criteria.
- Non-resident and temporary-visa borrowers commonly need a deposit of 20-40% (many lenders cap borrowing at around 80% loan-to-value, i.e. a minimum 20% deposit, with some requiring 30-40%), and may face interest rate loadings.
- Mortgage availability is separate from FIRB approval: a foreign buyer generally still needs FIRB approval to purchase, and (since 1 April 2025 to 30 June 2029) is generally restricted to new dwellings or vacant land for development rather than established dwellings, regardless of whether finance is approved.
Steps
- Determine Eligibility — Check with lenders about their eligibility criteria, including credit score requirements and income thresholds.
- Choose a Lender — Research and compare different lenders, their products, and interest rates to find the best fit for your needs.
- Apply for a Mortgage — Submit your application, providing required documents and information, and wait for approval.
Costs
- Application Fee: varies between lenders
- Stamp Duty: varies by state
Timelines
- Processing Time: typically 2-6 weeks
Required documents
- Proof of income
- Identification documents (passport, driver's license)
- Credit report
Common mistakes
- Not researching and comparing lenders and their products
- Not meeting eligibility criteria or providing required documents
AI confidence note (remove before publishing)
The information provided is based on general knowledge of Australian mortgage laws and practices. Specific requirements and details may vary depending on individual circumstances and lender policies. Further research and consultation with a financial advisor or lender is recommended.