Home Loan Glossary for Visa Holders & Expats

Home Loan Glossary for Visa Holders and Australian Expats

Buying property in Australia on a visa, or as an Australian living overseas, comes with its own vocabulary: FIRB, LVR, genuine savings, joint tenants, non-resident servicing. This glossary explains the terms that actually matter for your situation, in plain English. Where a term links to one of our specialist pages, follow it for the full detail.

This is general information, not legal, tax, or financial advice. Rules change and your situation is specific, so confirm the detail with us before you rely on it.

A

Amortisation period (loan term): The length of time you have to repay the loan in full, commonly 25 or 30 years.

Application fee: A fee some lenders charge to set up a loan. Many of the lenders we work with waive it, which is one of the things we check when comparing your options.

Appraised (valuation) value: The lender’s assessment of what a property is worth, used to calculate your LVR. For overseas buyers this is done by a local valuer the lender appoints.

Arrears: A loan repayment that is overdue. Arrears on any credit facility can affect your expat or visa-holder application, so they are worth clearing before you apply.

B

Bridging visa: A temporary visa that keeps you lawfully in Australia while a substantive visa is decided. Some bridging visa holders can still borrow with the right partner or lender. See bridging visa home loans.

Borrowing capacity (serviceability): How much a lender will let you borrow, based on your income, expenses, and existing debts. For visa holders and expats the key variable is how a lender treats foreign income.

C

Comparison rate: A single percentage that combines the interest rate with most standard fees, so you can compare loans on a more like-for-like basis than the advertised rate alone.

Currency shading: The discount a lender applies to income earned in a foreign currency (commonly 0% to 20%) to allow for exchange-rate movement. It varies widely between lenders, which is why the lender you choose changes how much you can borrow.

D

Deposit: The share of the purchase price you contribute from your own funds. Many visa-holder and expat buyers can proceed with 5% to 10% rather than the 20% often assumed, depending on the lender and your situation.

Discharge fee: A fee charged when you pay out or refinance a loan. It is one of the switching costs we factor in before recommending a refinance.

E

Established dwelling: A property that has been lived in before, as opposed to a new build. Since 1 April 2025, temporary visa holders generally cannot buy an established dwelling in their own name. The main exception is buying as joint tenants with an eligible partner. See FIRB approval explained.

Equity: The share of your property you actually own, that is, its value minus what you still owe. Rising equity can be used toward your next purchase or a refinance.

F

FIRB (Foreign Investment Review Board): The body that reviews property purchases by foreign persons. Temporary visa holders usually need FIRB approval and pay a fee to buy a new dwelling or vacant land, and are currently restricted from buying established dwellings in their own name. A visa holder buying as joint tenants with an Australian citizen, permanent resident, or eligible New Zealand citizen partner is generally exempt. Full detail on our FIRB approval page.

First Home Owner Grant (FHOG): A state grant for eligible first-home buyers, generally on new homes. Eligibility depends on residency status; New Zealand citizens on a Special Category Visa (444) are treated as permanent residents for this purpose.

Foreign income: Income you earn overseas. Whether a lender accepts it, and how much they shade it, is the single biggest factor in an expat loan. We work with the lenders who assess your real overseas income rather than discounting it heavily.

Foreign buyer stamp duty surcharge: An additional stamp duty some states charge foreign purchasers. Australian citizens and permanent residents living overseas generally do not pay it. Whether it applies to your situation is one of the things we confirm before you commit.

G

Genuine savings: Funds a lender can see you have accumulated over time (usually three months or more), as opposed to a gift or a recent lump sum. Some lenders waive genuine savings requirements for strong applicants, which matters if your savings sit offshore.

Guarantor: Someone, often a family member with Australian property, who supports your loan with their own equity. A guarantor can reduce or remove the deposit hurdle. See partner and guarantor options.

I

Interest only (IO): A repayment type where, for a set period, you pay only the interest and not the principal. Repayments are lower during that period, but you are not reducing the loan balance.

J

Joint tenants: A form of co-ownership where two people own the whole property together, and if one dies their share passes automatically to the other. This is the ownership structure that makes a visa holder buying with an eligible Australian, PR, or NZ-citizen partner exempt from FIRB, including on established homes. It is different from tenants in common.

L

Lenders Mortgage Insurance (LMI): A one-off insurance premium that protects the lender (not you) when you borrow above 80% LVR. It lets you buy with a smaller deposit. Some professions and strong applicants can have it waived or reduced.

Loan to Value Ratio (LVR): The size of your loan as a percentage of the property value. An 80% LVR means a 20% deposit. Many visa holders and expats can borrow above 80% (up to around 95% for the strongest cases) with the right lender.

N

New dwelling: A property that has not been previously occupied, or a substantial redevelopment. Temporary visa holders can buy a new dwelling with FIRB approval and the applicable fee, unlike an established dwelling.

Non-resident: For lending, a borrower who lives outside Australia. Australian citizens and permanent residents living overseas are non-residents for servicing but keep advantages foreign nationals do not, such as no foreign buyer surcharge. See Australian expat home loans.

O

Offset account: A transaction account linked to your loan. The balance is offset against your loan balance for interest purposes, so money sitting in it reduces the interest you pay while staying available.

P

Partner visa (subclass 309/820/300): A visa held by the partner of an Australian citizen, permanent resident, or eligible New Zealand citizen. Partner-visa holders buying with their partner are usually well placed to borrow. See partner visa home loans.

Permanent resident (PR): A visa holder with the right to live in Australia indefinitely. PRs borrow on much the same terms as citizens. See permanent resident home loans.

Pre-approval: A lender’s conditional indication of how much you can borrow before you find a property. It helps you buy with confidence, though it is not a formal approval.

Principal and interest (P&I): A repayment type where each repayment reduces both the interest and the loan balance, so the loan is paid off over its term.

R

Redraw facility: A feature that lets you withdraw extra repayments you have made ahead of schedule, if you need the funds later.

Refinancing: Replacing your current loan with a new one, often to secure a more competitive rate, access equity, or change loan features. For expats, timing and lender choice matter. See expat refinance options.

S

Special Category Visa (subclass 444): The visa most New Zealand citizens hold in Australia. SCV holders are treated as permanent residents for several purposes, including the First Home Owner Grant.

461 visa: Held by the partner of a New Zealand citizen. A 461 holder buying with their NZ-citizen partner is usually well placed to buy, often without FIRB. See 461 visa home loans.

T

Temporary resident: A visa holder in Australia on a temporary visa (for example 482, 485, 491, or a partner visa). Lending and FIRB rules differ from those for citizens and PRs, which is where specialist advice pays off.

Tenants in common: A form of co-ownership where each owner holds a defined share that can be passed on separately. Unlike joint tenants, this structure does not give a temporary visa holder the FIRB exemption on an established home, so the ownership structure you choose matters.

V

Valuation: See Appraised value. The lender-ordered assessment of a property’s worth, which sets your borrowing limit against that property.

Not sure which of these apply to you?

That is exactly what we sort out in a free strategy session. We map your visa or residency status, your income and currency, and your deposit to the lenders most likely to approve you, before you spend a dollar on due diligence.

Book a Free Strategy Session