Permanent Residents are treated by some banks and lenders as foreign citizens which invokes stricter lending policy than is otherwise applied to Australian citizens. There are however a handful of banks and lenders that will treat PR visa holders like Australian citizens and thereby provide home loans under normal lending criteria. Below is an example of the policies applied to Australian Permanent Residents.
Permanent Resident living and working in Australia:
PR visa holders buying a home in Australia can obtain a home loan with just 5% deposit. The 5% deposit can be genuine or non genuine savings so there is no requirement to have saved up the deposit but can rather come from a gift, sale of an asset, First Home Owners Grant or even a personal loan.
Permanent Resident buying a home with someone who does not hold PR:
If the permanent resident is purchasing with an borrower that does not hold PR, then a home loan is still available to 95% LVR as well. The key is that one applicant must be an Australian citizen or Permanent Resident see: Joint Loan for PR and Temporary Resident.
Home Loans for Permanent Residents Living and Working Abroad earning foreign income:
For Australian permanent resident visa holders living and working overseas earning a foreign income, home loan mortgage finance is also available but to 90% LVR thereby requiring a 10% deposit plus costs like Stamp duty and legals. There are restrictions on the currency that the Permanent Resident is earning at this LVR.