Getting A Mortgage In Australia

mortgage in australia

Did you know you can get a mortgage on a house in Australia even if you don’t have a permanent visa? To get the ins and the outs of it all, we find out more from CBM Mortgages.

Can someone who is not an Australian resident secure a mortgage?
Yes, definitely, but the deposit required would all come down to their visa type. If you are on a 457 Visa living in Australia it may be possible to go to a 90% lending to value ratio on a property but if you are offshore then the maximum would be an 80% lending to value ratio.

Getting a mortgage in Australia can be much easier than in any other country. The rules & regulations are nationwide not state-wise as in the USA. So, it becomes easy for websites & brokers to bring the information near you. Before applying for the mortgage loan, you must have to know about the rate of interest you have to pay each month during the repayment. So, account for an online mortgage calculator that helps you to give an estimate of the interest rate with the total amount you have to pay each month.

Australian professionals are bound with strict rules and regulations than the other countries. That’s why; they are giving you great terms and competitive rates of mortgage. The services of mortgage brokers are mostly free for residential loans in Australia. Typically, people account for the online mortgage calculator that helps to give the complete loan summary including the number of payments, estimated payoff date, and total interest rate as well as the complete mortgage amortization schedule.

How much capital would be required for a mortgage?
Again, this really all comes down to your visa type and would also impact the benefits you may receive as a First Home Buyer. Permanent residents should probably aim for around at least 8% of the value of the property and selected temporary visa holders such as a 457 Visa holder should aim for a minimum of 15% of the value of the property to cover deposit and stamp duty fees and charges.

Are you able to secure a loan against a property overseas for example in the UK or Ireland?
Not unless you have an ongoing revenue stream that you can demonstrate to the bank. Any finance would be organised via lenders in the UK.

What are the borrowing rates like in Australia?
There are some great offerings at present with variable rates starting from 3.99%. Rates offered by banks can differ depending on the loan amount and the lending to value ratio.

Is it possible to get a buy to let mortgage in Australia?
Yes, but this will all depend on your residency status. If you don’t have permanent residency and you wish to purchase an investment property then the property you purchase would need to be brand new. There are no restrictions for permanent visa holders.

Do you have to pay stamp duty or is there an Australian equivalent?
You do have to pay stamp duty. Each state has a different offering in terms of discounts and waivers for First Home Buyers but this is only available for permanent visa holders. The amount and guidelines differ from state to state.

If you are still a resident in the UK or Ireland do you have to pay Capital Gains tax there? What kind of evidence on earnings and/or savings would you need to provide?
This will all depend on the lending to value ratio you are seeking. If you’re applying for finance with less than 20% deposit then you normally need to demonstrate that you have held the equivalent of 5% of the purchase property for more than 3 months in the form of savings or equity in property.

What’s the difference between using a broker or going direct to the bank?
A bank will only offer their products and each bank has their own policies and niches. Where you get declined with one bank you might get approved with another. A broker has access to a wide range of offerings and lenders and a good experienced broker should know the difference between their different policies.

Find out more about Australian home loans and mortgages at