How A 457 Visa Holder Bought A Home In Australia

Home Loan Experts explain how you can buy a home in Australia, even if you’re on a 457 visa…

When Stephen Eaves migrated to Australia to be closer to his daughter and grandchildren, he had no idea that purchasing a home would be so challenging on a 457 visa and why a mortgage broker was essential.

Moving to Hillston in western New South Wales from Worcestershire two years ago, he and his wife were able to find somewhere to rent fairly easily. After getting his 457 visa approved though, Stephen soon had his sights set on purchasing an investment property for his family. “We moved to Australia for a better lifestyle but we found mortgages here a little confusing,” he said. “There were hidden costs and many limitations in being a non-resident.”

Unfortunately, being on a temporary business visa meant that Stephen was let down by a lender not doing their homework on their situation. Because he and his wife weren’t Australian citizens, it was important that Stephen find a lender that was happy to work with people on a working visa.

Although the Australian government itself doesn’t restrict particular visa types when it comes to lending money, banks and other lenders tend to only prefer certain types of visas. These include:

• Investor Retirement Visa (Subclass 405)
• Temporary Business (Long Stay) – Standard Business Sponsorship (Subclass 457)
• Foreign Government Agency Visa (Subclass 415)
• Domestic Workers Visa (Subclass 426) • Diplomats Visa (Subclass 995)
• Medical Practitioner (Temporary) Visa (Subclass 422)

The reason banks are a little apprehensive about lending to borrowers on a visa is because there is some uncertainty as to how long you will be staying in Australia. You may also require Foreign Investment Review Board approval depending on the type of property you are purchasing. Luckily, Stephen found a broker that specialised in getting home loans approved for people on 457 visas. “My broker was able secure a new lender and took care of the interfacing, which at times was frustrating,” he said.

At the time, Stephen was able to borrow 90 per cent of the property value of his Hillston investment property. However, thanks to recent changes to bank policy in Australia, 457 visa holders can borrow up to 95 per cent of the purchase price as a special exception to normal bank criteria.

“I would certainly suggest that a prospective buyer should consider using a broker if only to source what should be the most appropriate loan,” he said. Stephen is currently still renting but says the next move is to buy his own home in Australia once he earns enough equity in his investment property.

Visit homeloanexperts.com.au for more information on how you can buy a home Down Under.