Mortgages for 457 Visa Holders
If you are in Australia on a 457 Visa you may be labouring under the misapprehension (pun intended) that you can only borrow up to 80% Loan to Value Ratio (LVR) when applying for a mortgage. The truth is that certain lenders will consider and frequently approve mortgages for 457 Visa holders for 90% or even 95%. You just need to know which lender to approach.
Given that almost 40 per cent of 457 visa holders have in the past gone on to become permanent residents, rather than simply pay rent for four years it might make sense to buy a property and see a significant increase in the value of your asset over that period, whether it is your intention to stay or not after the four years are up. You will NOT pay a higher interest rate than an Australian Citizen or permanent resident.
After two or three years your employer may sponsor a transition for you for permanent residency. According to Peter Mares, an adjunct fellow at the Swinburne Institute for Social Research, the number of permanent migrants sponsored annually by employers has grown from 10,000 in 2003/4 to more than 45,000 in 2013. About 80 per cent of these migrants are already living and working in Australia.
To be eligible for a mortgage or home loan in Australia you must be at least 18 years old. You need to be able to provide evidence of ongoing, regular income. You also need to show all existing financial liabilities and have a minimum of 5% genuine savings unless you are transferring house sale proceeds from your previous country of residence. You will also need to be able to cover the near-enough 5% of the property value that is required to cover government fees and charges such as stamp duty and registration fees, conveyancer’s or solicitor’s fees. As you are not (yet?) a permanent resident of Australia you have to ask the Foreign Investment Review Board for permission to buy property in Australia but this is usually automatic and they give you approval by email and by email only. Click on www.firb.gov.au to learn more.
If you are interested in mortgages for 457 visa holders –
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