Australia is an attractive destination for investors. Many potential migrants (non-residents and temporary residents) are eager to invest in real-estate market of the country. But, they do not fully understand that "Australian Visa Requirements" must be satisfied before they can consider borrowing funds to purchase a new or used home, or investment property in Australia. So, before you start applying for a loan, here are a few things that require attention of every potential investor.
Visa Subclasses Preferred by Lenders/Credit Providers
It has become increasingly evident that lenders/credit providers will normally prefer to lend to any of the following Temporary Resident Visa Subclasses:
Subclass 457 - Temporary Business (Long Stay) Standard Business Sponsorship
Subclass 405 - Investor Retirement Visa
Subclass 415 - Foreign Government Agency Visa
Subclass 426 - Domestic Workers Visa
Subclass 995 Diplomats Visa
Subclass 422 - Medical Practitioner (Temporary) Visa
Diverse Home Loan Application Process
All Visa holders are assessed differently, and the process will depend on the type of Visa holder you are. Interestingly, lenders/credit providers have identified that the most common types of Visa holders applying for home loans are:
Visa holders on Spouse Visas (subclass 309/100 and 820/801), and
Visa holders on Temporary Business (Long Stay) Standard Business Sponsorship Visas (Subclass 457)
Security Types Considered by Lenders/Credit Providers
Here is a list of security types that you can consider. However, it is important to note that any dwellings must have never been occupied or been previously sold:
To buy vacant land, so long as you start continuous construction within 12 months
To buy units, townhouses, and house/land packages
To buy existing residences for redevelopment as long as:
>> the development will increase the supply of housing
>> the land remains unoccupied during redevelopment, and
>> no more than 50 percent of the dwellings in any one redevelopment are sold to foreign investors
Important Factors considered by Lenders/Credit Providers
Once you get your Australian Visa, you can apply for a home loan. It is always advisable to seek help of an expert finance broker who specialises in getting home loans for non-resident and temporary residents.
The finance broker you employ for your services should have a thorough knowledge of what the lending policies and standard requirements are for specialised lenders.
He/she will prepare a "Home Loan Checklist" to help you understand what factors the lenders/credit providers take into consideration like:
Residency Status: The time remaining on your Visa, your Visa conditions, and the country you are a citizen of
Genuine Savings: You must be able to prove that at least 5%of the purchase price is being saved in an account in your name. And, the other funds can come from any other source including a gift from your parents overseas.
Employment: For some lenders/credit providers if you are:
Borrowing 80% of the property value, then you can be in your current job for as little as one day, or
Borrowing more than 80% of the property value and up to 90%, then you may be required to be in your job for six months or more
However, if you are a permanent employee, you are held in a higher regard by the lenders/credit providers than if you are a casual, a contractor or a temporary employee.
So, dont worry about getting pre-approval on home loans for non-residents and temporary residents. An expert finance broker will do all the hard work for you to make sure you get a quick pre-approval. So, it is ideal to employ the services of a reputed finance broker as he/she will save you all the trouble of establishing if your Visa requirements are met and to find you the best home loan deal.
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Singh Finance is a reputed Australian finance brokerage firm that has a team of expert finance brokers. The firm specialises in getting foreign citizens home loan for temporary residents and non-residents of Australia. Our team of expert finance brokers will even help you in finding cheap vacant land loans.
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