Mortgage for house and land package on a 457 visa
If you are a temporary resident on a 457 visa looking for a house and land package, this page is for you. Temporary residents can find it difficult to obtain the right information in respect to mortgages for house and land packages whilst on a visa, so we have compiled a few of the most common questions that temporary residents looking for mortgage ask.
Will my application need to be approved by the Australian government (FIRB)?
In all probability if you are buying a house and land package whilst on a 457 visa you will need to obtain approval for this from the Foreign Investment Review Board (FIRB). The FIRB monitors and controls all foreign investment in Australia, which includes those buying house and land on a 457 visa, even if you plan to live in the home once completed. There are some limited exceptions to this requirement including:
- If you are buying or building with an Australian Citizen or
- The developer from which you are purchasing the house and land package has already obtained pre-approval from the FIRB.
- In most other cases, those on 457 visa’s will require approval. It is however a relatively straight forward process and your MAP Home Loans consultant can guide you through this process.
Will I be limited in my mortgage features due to my visa?
The home loan features available to temporary residents buying house and land packages are the same as those provided for Australian citizens and permanent residents. Many home loan packages allow you to choose between basic, standard variable and fixed interest rates as well as offering a number of attractive features including offset accounts and redraw facilities. If you are thinking of starting a family in the near future you may be able to pause your repayments while you take time off work.
Is the interest rate higher for temporary residents?
You do not have to pay any more in interest than an Australian citizen or permanent resident would. Many of the mortgages available to 457 visa holders offer significantly lower interest rates than the standard variable so you may find you end up paying less than you think.
What is the maximum I can borrow?
Generally temporary residents on a 457 visa can borrow up to 80% of the total value of their house and land package. However, in certain limited circumstances you may be able 90% or even 95%.
If I want to borrow more than 80% LVR is that possible?
In some cases you may be able to borrow more than 80% of the total value of your house and land package. If you are in a professional occupation and have a strong employment history it is possible you may be able to borrow up to 90% of the total end value of the house and land package. The criteria for this is strict and requires;
- Applicants in Australia on a 457 visa who are earning in excess of $80,000 per year, or
- Professional applicants such as lawyers, accountants, IT, HR, finance professionals, engineers, and
- Minimum of 1 year left remaining on the 457 visa.
- 95% LVR may also available If you are purchasing with an Australian or NZ citizen or a permanent resident of Australia.
If you have been advised that 80% is the maximum possible available to you, or that the banks will not lend to you at all, contact our office on 1300 397 287 to discuss your requirements and confirm your eligibility.
If you are looking to buy a house and land package on a 457 visa and want some help finding and applying for finance give us a call today. Our experienced and friendly team can advise you on your options and help you find the best home loan for your needs.