What Is A Non-resident Home Equity
Non resident home loans are mortgages that are available to people who do not live in Australia. These loans are typically available to people who have a strong income and credit history, but they may come with higher interest rates than loans for residents. A non resident mortgage typically has a shorter loan period, larger deposit requirements and restrictions on the type of property that can be purchased.
Who are the non-residents
If you are looking to purchase a property in Melbourne, but don’t meet the eligibility criteria for a home loan, a non resident home loan could be the next best option. Who are considered the non-residents in Australia?
The non-residents in Australia generally include people who:
- Have a temporary visa
- Are an international student
- Are on a working holiday visa
- Are a New Zealand citizen.
Break Free Home Loans can help you review the profiles of various lenders and find the best deal possible to suit your needs.
Main Features of The Loan
What are the main features of non resident home loans?
- Non resident home loans have a higher interest rate than regular home loans.
- You will usually need a larger deposit.
- The loan term is usually shorter.
- There are often restrictions on the type of property you can purchase.
At Break Free Home Loans, we make sure to help you find the best repayment terms and conditions for your non resident home loan. When you want great service, flexibility and custom-tailored service, talk to our mortgage brokers.
How to Apply For A Non-resident Home Loan in Australia
It’s important to remember that not all lenders offer home loans to non-residents, so it’s important to shop around and compare your options. Be sure to ask about the interest rates, repayment terms, and any other fees or charges that may apply to your case. Need a home loan for non resident mortgages? Break Free Home Loans is the leading broker to help you find the best non resident mortgage Australian lender.
Non resident home loans are definitely possible to obtain, but it will take some extra time and effort to find the right lender. With the help of a mortgage broker, you can increase your chances of securing financing and get the best loan terms possible. The first thing to do is to speak with a mortgage broker who specialises in home equity for non resident Australians. Break Free Home Loans can assess your eligibility and help you compare different loan options.
Credit Profile Verification
To be eligible for a non resident home loan, you must fulfil the following set of eligibility criteria:
- Be at least 18 years of age
- Earn a regular income
- Have a good credit history
- Meet the lender’s residency requirements.
For a non resident home loan, the lender will require you to provide proof of your income and employment. They may also ask for additional documentation such as your passport or Australian visa.
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Real Estate Closing
A key consideration in obtaining a mortgage for non permanent residents is Australia’s foreign investment rules. When it comes to buying real estate, in general, non-residents must buy new properties or vacant land on which a new development is planned. Another important reminder is to allow for additional time to complete the sale as there are often delays in processing paperwork and financing.
How Much Can You Borrow?
When it comes to a mortgage for non residents, how much you can borrow depends on:
- Whether you are Australian or not,
- Where you are living,
- And the type and terms of your visa.
It is common for non-residents to be able to borrow up to $2.5 million for up to 25 years at competitive (if slightly higher) interest rates. In general, the minimum loan is $100,000. Meanwhile, maximum loan amounts range up to $15 million with up to 70% loan-to-value ratio, or $2.5 million with up to 75% LVR.
Types Of Property That Non-residents Can Buy In Australia
If you’re a non-resident looking to purchase a property in Melbourne, you’ll need to be aware of the different rules and regulations that apply. So what kinds of property can non-residents buy in Australia? Since December 2015, the FIRB rules strictly outline the types of property non-residents can buy which includes:
A new dwelling or new residential property is defined as one that has been built or is under construction. It should not have been previously sold as a dwelling or previously occupied. If the dwelling is part of a larger development and sold by the developer, it should not have been previously occupied for more than 12 months in total. New dwellings do not include established dwellings that have been renovated or refurbished.
You may buy vacant land if you plan for construction to be completed within four years. You must meet certain conditions to seek approval from the FIRB including:
- Providing proof that the dwelling has been completed within 30 days.
- Vacant land must not have had a previously established dwelling on it.
The incentive when it comes to buying an established dwelling for development in Australia is to increase the Australian housing stock. You can only buy established wellings on the condition that existing buildings are demolished and replaced with a greater number of properties. The FIRB also firmly states other conditions for the redevelopment such as:
- The existing dwelling must remain vacant prior to demolition and redevelopment.
- The existing dwelling is demolished and construction of the new dwelling is completed within four years of the approval.
- Evidence of completion for new dwellings is submitted within 30 days of being received by the applicant in the form of a final occupancy or builder’s completion certification.
Comparing Australian Non Resident Home Loan Lenders in Melbourne
The interest rates of Australian non-resident home loan lenders in Melbourne are likely to be higher than regular home loans and rates applicable to expatriate loans. Your loan term may be limited up to 25 years in contrast to expat home loans and regular home loans which can go up to 30 years. Nonetheless, you can still get great value and flexible financing opportunities when you choose the right lender for your property. Talk to our brokers today to choose the best lender for your situation. The following are just some options we can walk you through:
International borrowers may be eligible for non-resident loans with FIRB approval. The loan is commonly used for purchasing and refinancing home or investment property. A key consideration when buying real estate in Australia is that non-residents must match the credit loan profile verification requirements. This includes having good credit history, income standard and residency status as demanded by the lender.
Also There are many different types of home loans available on the market, but if you have a disability, finding the right loan can be a challenge. That’s why Break Free Home Loans offers a range of disability-specific home loan products to help you get the finance you need.
Need a Consultation? Speak To Us!
Break Free Home and Start Up Business Loans can help you compare non resident home loans from a range of lenders and find the right loan for your needs. We can also help you with the application process and provide guidance on how to meet the eligibility criteria. If you’re considering a non resident home loan, contact our mortgage brokers today.
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Frequently Asked Questions
Can I Get A Home Loan As Non Residents?
While the criteria may be stricter, yes, you can. Here’s what you can buy in Australia as a non-resident:
- New residential property
- Established dwellings for redevelopment
- Vacant blocks of land for development
How To Get A Home Loan For Non Resident In Australia?
There are a few things to consider before you apply for a non resident home loan, such as:
- Your credit history and income
- The type of property you’re looking to purchase
- The down payment you can afford
- The interest rate you’re willing to pay
You need proof of income and employment as well as other relevant documents to lodge your application for the loan. Break Free Home Loans can help you prepare your application correctly and liaise on your behalf for a more secure, faster loan approval.
How Much Can You Borrow With A Non Resident Home Loan?
You can borrow up to $15 million with up to 70% loan-to-value ratio and $2.5 million with up to 75% LVR.