457 Visa Home Loans: Mortgages for 457 Visa Holders

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LET A MORTGAGE BROKER TAKE CARE OF YOUR HOME LOAN SO YOU CAN RELAX!

A common question that 457 visa holders ask when they come to Australia is “Can I get a loan on a 457 visa?”

 

The answer is yes, you can get a home loan while on a 457 visa!

 

Selected lenders will approve home loans for 457 visa holders. However, this is not widely known, even among bank branch staff of lenders that do offer home loans for 457 visa holders. Those bank staff and mortgage brokers that are aware of options for 457 visa holders often put in the application wrong or go with a lender that has expensive interest rates or a bad loan package.

 

So what is the solution? Only contact trusted mortgage broker companies. These mortgage brokers usually have a team of specialist lending experts that know about the different options available for 457 visa holders, and most importantly, how to get the loan approved!

 

Avoid the disappointment of having your loan rejected, only use a reputable mortgage broker that has a lending team that specializes in home loans for non-residents and temporary visa holders!

A 457 Visa, officially known as a Temporary Work (Skilled) visa (subclass 457), allows skilled workers to come to Australia and work for an approved business for up to four years.

 

457 home loan

 

To get a 457 visa to come and work in Australia you must be sponsored by an approved Australian business.

 

An Australian business can sponsor someone for a 457 visa if they cannot find a suitable Australian citizen or permanent resident to do the work.

 

There were 51,940 “457 visas” granted in the 2013-14 financial year (1 July to 30 June).

 

Managers and professionals accounted for the majority of 457 visas granted. Technician and trades workers were the next highest.

 

The top 15 nominated occupations for 457 visa holders in Australia were: Cook, Cafe or Restaurant Manager, Marketing Specialist, Program or Project Administrator, Chef, Customer Service Manager, General Practitioner, Developer Programmer, Accountant (General), Sales and Marketing Manager, Motor Mechanic (General), Carpenter, University Lecturer, Management Consultant, and Specialist Managers.

The first question that many 457 visa holders have is “can I buy a house on a 457 visa?” A 457 visa holder can buy a house in Australia but you will first need to get approval from the Foreign Investment Review Board.

 

Note that commencing 1 Dec 2015 there is a $5,000 application fee when applying to the Foreign Investment Review Board to purchase residential property costing less than $1 million and $10,000 for properties greater than $1 million and each million after.

 

If you are buying the real estate as ‘joint tenants’ with your spouse who is an Australian citizen you will not need the approval of the Foreign Investment Review Board.

A ‘457 visa home loan‘ is a home loan to a 457 visa holder from an Australian lender for the purchase of Australian property. Not all banks or lenders offer mortgages for 457 visa holders. Furthermore, there is a big difference in the home loan rates and features between those lenders that do offer home loans to 457 visa holders. You will also need to meet the lender’s normal criteria for obtaining a home loan.

You will need to meet the lender’s normal lending criteria for approving a home loan. These criteria differ between lenders and include things like your income level, expenses and your ability to repay the loan. The stability of your residence and job. Lenders prefer to see that you are not moving between jobs or homes without good reason. Lenders want to see that you have saved money to put towards the purchase of your home. The type and location of the property that you are buying is also important as some properties are higher risk and harder to sell than others.

 

Your credit history in Australia is important. If you have bad / unpaid debts this will be a problem for the lender. Small unpaid debts like an unpaid utility bill may be able to be overlooked if it is repaid before the loan application. Lenders will not check your overseas credit history.

 

If your visa is about to end and you have not applied for another Australian visa this may also be a problem.

Anyone on a 457 visa is able to borrow 80% of the property value.

 

Though, some lenders allow you to borrow more than 80% or up to 90% of the property value if you have lenders mortgage insurance.

 

If your partner is a permanent resident you will be able to borrow 95% of the property value.

 

For home loans greater than 80% of the property value you will be required to pay for lenders mortgage insurance. Lenders mortgage insurance can cost thousands of dollars.

 

However, if you are a medical doctor, vet, medical specialist, dentist, chiropractor, optometrist or physiotherapist you may be able to borrow up to 90% of the property value without paying lenders mortgage insurance.

 

You will also need to meet the lender’s other lending criteria.

This will depend on how much you are borrowing.

 

If you are borrowing up to 80% of the property value, you will need at least the 20% for the bank deposit. You will also need to pay for the closing costs. These are Stamp duty, conveyancing fees, home insurance, and some other fees and taxes. Stamp duty varies between states and territories. The cost of conveyancing will depend on who you use and how much they charge. These closing costs can cost between 3-5%.

 

If you want to borrow more than 80% of the property value, in addition to the closing costs (3-5% of the property value) you will also need to pay for lenders mortgage insurance which adds additional cost (0.5 to 5%) depending on the size of the loan and the loan to value ratio. If you are a medical doctor, vet, medical specialist, dentist, chiropractor, optometrist or physiotherapist you may be able to borrow up to 90% of the property value without paying lenders mortgage insurance.

No, if you are on a 457 visa, you cannot get the Government First Home Owners Grant unless you are buying the real estate with your spouse who is an Australian citizen and you’re buying your first home. See more details here about the Government First Home Owners Grant.

A mortgage broker can help you get your home loan approved while you are still on a 457 visa. Not only will they help you get your home loan approved, but they will also compare between the different lenders to get you a great package of interest rates, fees and features that suit your circumstances.

No, for most home loans mortgage broker services are free. A mortgage broker is paid by the banks for introducing loans to customers. Your loan will usually not be more expensive because you use their service. Rather, because they know the different banks and their policies and keep up to date about their changes to interest rates and fees, they can often find you a better home loan!

Are you on a 457 visa and you need help with your home loan?

Work visa home loans

Find out about home loans for all types of Australian work visa holders.

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