non resident loans

Between needing to pay for your airline flight to Australia, your current housing, and all of the other financial costs associated with packing up and moving to another county, it can be very easy to feel overwhelmed by the small bank account balance that you are left with. 

Although some forms of financing might not yet be available to you in Australia as a non-resident, many options are available to meet your student, personal, and home needs as you get your new home set up in Australia. The following are some of the main questions you are probably concerned about, along with the answers.

Will my credit history affect my getting a loan?

Australian lenders are not allowed to access your credit history from overseas. If you have recently moved to Australia, you will not have built up a credit file yet. However, that doesn’t mean loans will not be accessible to you until then. 

Financial experts at Pronto Finance say that “many of the lenders that approve loans for migrants use other criteria for determining credit risk: assets, visa type, the borrower’s financial situation, and overall ability to pay the loan back. Higher amounts might even be lent to migrants depending on their application’s strength.” 

Something to keep in mind is that your credit history in Australia starts the minute you have debts or funds with a financial institution in Australia. If you obtain bad or negative credit history or apply for too many loans within a short period, that can negatively impact your credit score with Australian lenders. 

If you stay on top of your bills and debts and maintain a good credit history, you will increase your chances substantially to successfully obtain a loan. 

Will I be able to obtain a loan for X amount?

There is never a straightforward answer to this question. 

Certain lenders will provide non-residents with loans, while others will not. The Big Four most likely have options for non-residents.

However, you will probably be required to meet certain eligibility requirements before your loan being approved and to determine how much you are eligible to borrow.

Your eligibility might involve the following:

  • A visa
  • A stable source of income or employment 
  • An Australian bank account
  • An Australian residence
  • Ability to repay your loan before the expiry date of your visa

Also, the lender might charge a higher interest rate on the loan — depending on what your circumstances are and the amount of risk that they assess you to be under. You can check some of the banks offering loans to non-residents to compare them and discuss your options further by directly contacting them to discuss your needs.

Migrant Mortgage: Non-resident Home Loans 

After you arrive in Australia, one of the first things that you will want to secure is a permanent home in the country — especially if you and your family have migrated or are in the country on the indefinite-stay permanent resident visa

When you are preparing to purchase your first house in Australia, one important thing is to research the best area that you want to live in.

While you are looking for a house, consider how close your house needs to be to shops, schools, your workplace, and also how safe the different areas are likely to be for your family. 

If you are planning on living in Australia for a long time, then you may want to check up-and-coming suburbs so that your house purchase can be turned into a sound investment.

Another important consideration is to compare mortgages.

It is very important to compare home loans and shop around to find the best one that suits your needs. A good place to begin doing your research is to engage the services of experts from Credit Capital, who will help find and compare various lenders for your particular needs. 

As a temporary resident, are you eligible to obtain a home loan?

One of the ways that Australia promotes growth is to offer easy homeownership options to migrants, and therefore, does not penalise temporary or permanent residents with rules like higher monthly payments. 

Permanent or temporary residents are given the same interest rates, terms, and features (which include the option to delay mortgage under specific circumstances and offset accounts) that are offered to citizens of Australia.

The same eligibility criteria apply as well, including: 

 Age (to apply for a loan you must be over 18 years old)

  • Sufficient identification
  • Loan security (i.e. the saleability and value of your property) 
  • Sufficient funds for covering fees that are associated with buying property
  • A good credit history in the country of Australia (if available)
  • Proof of existing assets (equity, savings, liabilities)
  • Regular ongoing employment (you are required to be employed and can afford to make repayments on your loan from your income). 

Migrants who have permanent residence 

Usually, migrants with permanent residence (PR) will have an easier time obtaining a home loan when compared to migrants who have temporary residence visas.

Individuals who have valid PR and meet all of the financial requirements are eligible to borrow a higher percentage of the value of a property (90%, on average). The precise amount that you can borrow will vary depending on whether you are living overseas, in Australia, or if you are a resident who has foreign income.

Migrants who have PR are also eligible to obtain the first home owners grant (FHOG) if you meet all of the standard requirements like not previously owning a home, intending to occupy the house within the initial 12 months of settlement, and residing in the property for at least six months. 

Migrants who have temporary residence

Although only select lenders and banks have policies for temporary migrants, there are still plenty of opportunities available for obtaining a home loan. Expect to have extra requirements and certain conditions before a loan is approved though. 

Temporary residents of Australia will qualify in Australia for a home loan if they have one of the following long-term working visas: 495, 487, 475, or 457. 

To apply for these loans, you must prove you have a steady income source and need to contact the Foreign Investment Review Board to obtain special permission.

Some lenders may also ask that you provide proof of overseas bank accounts and liabilities to build a more comprehensive financial profile before your request is approved. 

After meeting these requirements, you can apply for a home loan worth up to 80% of the property’s value plus a 20% deposit for security purposes.

Temporary residents are not eligible for the FHOG or a waiver of stamp duty.  

A few lenders allow students and bridging visa holders who have stable incomes to be eligible to borrow up to 80% of the property’s value. However, in these cases, stricter eligibility rules might apply.

how to nail your student visa application

Are you interested in studying in Australia

Whether you’ve found your dream course or you’re just looking to try something new, the next step is the application of your student visa.

While this may sound simple, there are a few things to consider when applying for a student visa. For instance, you need to choose the right health institution, provide proof of finance and other character requirements. 

But don’t feel overwhelmed. With the following 10 steps, your student visa application process will be a walk in the park.

Read more
australian visa location sydney

For those with a temporary Australian visa, it’s important to ask the right questions and it starts here by figuring out whether or not you can start a business. 

For those with a temporary Australian visa, you are not restricted when it comes to beginning a new business, however, it’s still not as easy as you want it to be. 

There are certain conditions in place, which have to be honoured at all times on a temporary visa. 

If you don’t abide by these conditions, your temporary visa is going to come under review, which tends to happen when starting a new business. 

There are times when a person loses their status as a temporary visa holder.

Let’s take a look at what it means to start a business with a temporary Australian visa.

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Canadian flag flying over city

Are you looking to relocate from Australia?

Canada might be the right choice for you.

With the current economic success, Canada is a very attractive option for those who are considering becoming expats. 

With such tremendous opportunities, the expat market here is very lucrative. 

Most of the expats that reside in Canada have found work via insurance, catering, industrial industries, and other office positions. 

If you’re one of the many expats that are considering relocating to Canada, here are 5 tips to know before you move. 

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reasons to live or study abroad

#1 – Broaden Your Horizons

As you travel, learn and adjust to different cultures, you will start understanding how foreign cultures operate successfully in their own context. 

You will get to know that each different culture has its own way of dealing with relationships, family and work. You will get to understand that the different approaches used by different cultures can be right.

This is especially true when it comes to money and business. Money management and financial standards are different everywhere. For example, legal traditions and market cultures are different in every country and this affects the procedures you have to follow.

In the same way, living or studying overseas will let you expand your palate and try new foods, make new friends, and expose yourself to things you never would have experienced otherwise.

Ready to take the plunge already? Find out why to hire an Immigration Consultant here!

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If you are willing to immigrate to Canada, the first thing you should take into consideration is the PNP (Provincial Nominee Program). It is an essential thing if you want to settle in any particular province. Although different Canadian territory and province have its own PNP requirement and you need to have a brief idea on it to assure whether you are eligible for this or now and how to apply for the same. Today, we will discuss the right time for applying PNP and how you can know your eligibility for this. Read more

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As per a study conducted in 2014 it was established that Australia and Canada are the most friendly and receptive countries for immigration. In 2018 the population of Australia was estimated to be about 25 million – of which 62% growth has been achieved in the last 10 ten years – augmented by almost 40% from a population of 18 million in the 1990s. Australia’s immigration policy has been one of the key reasons behind this substantial swell in population – the 62% growth being a landmark point that was scheduled for 2050. Read more

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Canada is the world’s second largest country in the world, area-wise, Russia being the first one. In the North American continent, Canada is the largest country area-wise. In 2016, as per the census of the country, the population was about 35,121, 728 and as per 2019 estimates the population of Canada was 37.41 million. Read more