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457 Visa Home Loans & Mortgages

This is a short presentation by Craig Vaughan of MAP Home Loans on financing options for 457 visa holders looking for a mortgage in Australia. The presentation covers off on bank policy as well as some practical examples, with a specific focus on the deposit required.

At MAP we understand that you come from a foreign country with different rules and procedures than Australia. Purchasing a home is stressful enough and doing so whilst on a 457 visa may make the process of purchasing a home here that little bit more daunting. This is where MAP can help.

We are experts in helping foreign citizens living in Australia on 457 visas buy property in Australia and arrange a 457 visa mortgage approval (up to 90% LVR if required). We also provide step by step guidance throughout the entire process of buying property in Australia whilst on a 457 work Visa to make your purchase easy. This includes FIRB guidance, tips and tricks when choosing your conveyancing and building and pest team, and everything else in between. And we do all of this as a free service to you.

Please read on to find out more.

How Much can I Borrow while on a Subclass 457 Visa?

As a general rule, temporary residents on 457 Visas are limited to an 80% LVR home loan so a 20% deposit plus your costs like stamp duty will be required. However, there are exceptions to this rule if you have strong employment or purchasing with an Australian citizen or permanent resident.

80% of the property value: Temporary residents on 457 working visas (and most other types of visas) can obtain a 457 visa mortgage up to 80% of the purchase price through some banks thereby requiring a 20% deposit plus purchasing costs,

90% of the property value: Temporary residents on 457, 475, 487 and 495 visas can borrow up to 90% of the property value if you are a professional with strong employment history. Generally you would be in a professional occupation with 12 months in your current job or 2 years in the same line of work. Temporary residents on 457 visas seeking a home loan above 80% LVR are also required to have part of the deposit saved.

95% of the purchase price: If the 457 visa holder is purchasing with their Australian Citizen or Permanent Resident partner or spouse (married or defacto) then some lenders will approve a home loan for temporary residents to borrow up to 95% of the property value providing they have 5% genuine savings. In this scenario the first home owners grant may be available as well as the stamp duty concessions that apply.

More Information on Temporary Resident Home Loans HERE

How Can I Get A 457 Visa Home Loan Over 80%?

If you are on a 457 Visa, have been in your current employment for 12 months or in similar line of work for 2 years, and have saved up part of your deposit – then a home loan to 90% LVR may be available to you. That is, you could purchase your new home in Australia whilst on a 457 visa with just 10% deposit plus purchasing costs. Typically purchasing costs (like stamp duty etc) equate to roughly 5% of the purchase price.

You may have already approached your bank or broker and been advised that the maximum loan to value ratio is 80% as you do not hold permanent residency. At MAP, we specialise in home loans for temporary/non residents and as such have made special arrangements to be able to offer temporary residents a home loan to 90% LVR.

The following visas are also acceptable to 90% LVR;

• 457 Visa Home Loan (Temporary Business Long Stay)
• 475 Visa Mortgage (Skilled Regional Sponsored)
• 485 Visa Mortgage (Skilled Graduate)
• Subclass 487 Visa Loan (Skilled Regional)
• 495 Visa Home Loan (Independent Regional)
• Partner Visa 309 Home Loan
• Spouse Visa 820 Visa Mortgage
• Medical Professional Home Loans

Why Use A Specialist 457 Visa Mortgage Expert?

457 Visa Mortgage policy is a minefield with every bank having their own individual lending policy and requirements. This difference in lending criteria from one lender to another can result in one bank approving your 457 visa mortgage while another will decline the application or require a larger deposit. For example, some lenders will;

• Only lend to temporary residents who are on a particular type of working or spouse visa,
• Not lend to temporary residents at all,
• Only lend if purchasing with an Australian citizen or permanent resident,
• Require a deposit of up to 30%

This is where MAP Mortgage Brokers can help. MAP understands the complex 457 visa mortgage lending policies and requirements of all the Australian banks and non bank lenders to ensure that your temporary resident home loan is approved the first time at the best interest rate available.

Don’t risk a decline on your credit file. We do not charge you for our services so give us a call or enquire online for a no obligation assessment.