Moving to Australia is one thing. Buying property here is another. The finance process works differently depending on your residency status, and the gap between what a permanent resident can access and what a temporary visa holder faces is bigger than most people expect.
If you hold PR, the news is good: most lenders treat you like a citizen. Same rates, same products, same government schemes. But if you are on a temporary work visa, the rules tighten considerably. Fewer lenders, higher deposits, FIRB approval, foreign buyer surcharges and a ban on buying established homes that now runs until at least mid-2029.
This guide is specifically for people who have moved to Australia and want to buy property here. If you are an Australian citizen living overseas buying back home, that is a different situation covered in our expat and non-resident home loans guide.
Permanent resident vs temporary visa: why it matters
The single biggest factor in your home loan experience as a new resident is whether you hold permanent residency or a temporary visa. Everything else, your deposit, your lender options, your costs, flows from that distinction.
Same access as citizens
- Access the same interest rates, products and LVR options as Australian citizens
- Can borrow up to 95% LVR with lenders mortgage insurance (LMI)
- Eligible for the Home Guarantee Scheme (5% deposit, no LMI)
- Eligible for First Home Owner Grant (FHOG) in most states
- No FIRB approval required
- No foreign buyer stamp duty surcharge
- Can buy both established and new properties
- Can access stamp duty concessions for first home buyers
More restrictions, fewer lenders
- Typically need 10 to 20% deposit (some lenders accept 10% for qualifying visas)
- Fewer lenders accept temporary visa applicants
- FIRB approval required in most cases
- Foreign buyer stamp duty surcharge of 7 to 8% in most states
- Banned from buying established dwellings until at least 30 June 2029
- Can buy new builds, off-the-plan and vacant land
- Not eligible for FHOG or Home Guarantee Scheme
- Must sell or dispose of property if visa expires and you leave Australia
In practice, PR holders who have been working in Australia for six months or more with a clean credit history and stable income are in a strong position. The lending process is essentially the same as it is for any Australian citizen buying their first home.
Temporary visa holders face a different reality. The lender panel shrinks, the costs go up, and the property options narrow. That does not mean it is impossible. It means lender selection matters more than usual, and the wrong first application can waste time and create unnecessary credit enquiries on your file.
Which visa types can get a home loan?
Not every visa qualifies, and lender policies vary significantly. Here is how the most common visa types are typically treated by Australian lenders.
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| Visa type | Typical max LVR | FIRB required? | Notes |
|---|---|---|---|
| Permanent Resident (subclass 189, 190, 191) | Up to 95% | No | Treated the same as citizens. Eligible for HGS and FHOG. |
| NZ citizen (subclass 444) | Up to 95% | Generally no | Treated like PR by most lenders. Exempt from dwelling ban. |
| 482 (Temporary Skill Shortage) | 80 to 90% | Yes | Most accepted temporary visa. Medium-term stream preferred. |
| 491 (Skilled Work Regional) | 80 to 90% | Yes | Provisional visa. Fewer lenders but pathways exist. |
| 494 (Skilled Employer Sponsored Regional) | 80 to 90% | Yes | Similar to 491. Regional lending specialists may help. |
| 485 (Temporary Graduate) | 80% | Yes | Fewer lenders. Shorter visa duration is a concern for lenders. |
| Partner visa (309, 820) | Up to 95% (with citizen/PR partner) | No (if joint tenants with citizen/PR) | Joint purchase with citizen/PR removes most restrictions. |
| Bridging Visa A or B | 80% | Depends on circumstances | Some lenders accept with 20% deposit. Limited options. |
FIRB rules and the established dwelling ban
If you are on a temporary visa, the Foreign Investment Review Board (FIRB) is part of your buying process. FIRB approval is a government requirement, not a lender requirement, and you need it before you can legally purchase property in Australia as a temporary resident.
The established dwelling ban
From 1 April 2025, temporary visa holders have been banned from purchasing established (existing) dwellings in Australia. In the 2026-27 Budget, the government extended this ban until 30 June 2029. This is the single biggest restriction affecting temporary residents who want to buy property.
What you can still buy with FIRB approval:
FIRB fees (2025-2026)
FIRB application fees vary by property value and type. For properties under $1 million, expect to pay around $15,100 for new dwellings. Established dwelling fees are significantly higher (roughly three times the new dwelling fee) to discourage foreign buyers from competing with locals for existing housing stock. In practice, the ban means this fee is mostly irrelevant for temporary residents right now, since you cannot buy established property at all.
When you do not need FIRB
You generally do not need FIRB approval if you are buying jointly as joint tenants with a spouse or partner who is an Australian citizen or permanent resident. This is one of the most practical workarounds for temporary visa holders. It also removes the foreign buyer stamp duty surcharge in most states and exempts you from the established dwelling ban.
Deposit requirements and extra costs for visa holders
Your deposit requirement depends almost entirely on your residency status. Here is the practical breakdown.
Extra costs temporary visa holders need to budget for
On top of the standard buying costs every purchaser pays (conveyancing, building inspections, lender fees), temporary visa holders face additional costs that can add tens of thousands to the total.
Around $15,100 for new dwellings under $1 million. Fees increase with property value and are non-refundable even if you do not proceed with the purchase.
An additional 7 to 8% of the purchase price in most states, charged on top of standard stamp duty. On a $700,000 property, that is $49,000 to $56,000 extra in stamp duty alone.
If your deposit is below 20%, LMI applies. For temporary visa holders, LMI premiums can be higher than standard. Not all LMI providers insure temporary resident loans.
Some states charge an ongoing annual land tax surcharge for foreign-owned residential property, typically 2 to 4% of land value. This is separate from stamp duty and applies every year you hold the property.
Here is where many new residents get caught. They calculate their deposit based on the purchase price, then discover the foreign buyer surcharge, FIRB fee and LMI premium add another $60,000 to $80,000 on top. Budget for the full picture before you commit to a price range.
Foreign buyer stamp duty surcharges by state
Most states charge temporary visa holders an additional stamp duty surcharge on top of the standard transfer duty. This surcharge does not apply to permanent residents or Australian citizens.
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| State / Territory | Foreign buyer surcharge | Annual land tax surcharge |
|---|---|---|
| New South Wales | 8% | 4% |
| Victoria | 8% | 4% |
| Queensland | 8% | 2% |
| Western Australia | 7% | 2% |
| South Australia | 7% | 2% |
| Tasmania | 8% | Applies |
| ACT | None currently | None currently |
| Northern Territory | None | None |
These surcharges are significant. On a $750,000 new apartment in Sydney, the 8% foreign buyer surcharge alone adds $60,000 to your stamp duty bill. For some buyers, the ACT or Northern Territory offer a meaningful saving, though property markets and lifestyle factors obviously need to align as well.
If you are buying jointly as joint tenants with an Australian citizen or permanent resident spouse, the foreign buyer surcharge generally does not apply. This is worth confirming with your conveyancer before signing, because rules vary slightly between states.
What lenders assess for new residents and visa holders
The lending assessment for new residents overlaps with the standard process, but there are additional factors that can trip you up if you are not prepared. Lenders want to see that you can repay the loan, that you have a reason to stay in Australia, and that the property works as security.
Lenders check your visa subclass, remaining visa duration and pathway to permanency. A 482 medium-term stream with two or more years remaining is viewed more favourably than a short-term visa with six months left. Lenders want confidence you will stay.
Stable Australian employment is critical. Most lenders want to see at least six months of continuous employment with the same employer in Australia. Some accept less for PR holders or highly skilled visa categories. Contract and casual income is assessed more conservatively.
Income earned and taxed in Australia is straightforward to verify. Overseas income, rental income from property abroad, or foreign-currency earnings add complexity. Not all lenders accept foreign income, and those that do may apply a discount (sometimes 20 to 30%) to account for exchange rate risk.
If you have been in Australia less than 12 months, you may have a thin credit file. This is not necessarily a problem, but it helps to have no negative marks. Some lenders accept an international credit report as supplementary evidence.
Lenders want to understand where your deposit came from. Savings from Australian income is ideal. Funds transferred from overseas need clear documentation showing the source and trail. Unexplained large deposits are a red flag regardless of your visa status.
All borrowers, regardless of visa status, are assessed at the loan rate plus a 3% buffer under APRA guidelines. A loan at 6% is tested at 9%. This buffer has the same impact on your borrowing capacity as it does for any Australian citizen.
One thing that catches new residents off guard: your overseas debts count too. If you have a car loan, credit card or personal loan in another country, an Australian lender will factor those repayments into your serviceability calculation. Even if you plan to close them, the lender assesses what exists right now.
Steps to getting a home loan as a new resident
The process has more moving parts than a standard Australian home loan application, especially for temporary visa holders. Here is the right order.
Documents to prepare before applying
New resident applications typically require more documentation than standard applications. Lenders need to verify your visa status, income source, deposit trail and identity in ways that go beyond what a citizen would provide. Prepare these early to avoid delays.
One practical tip: if you transferred your deposit from overseas, keep every piece of documentation. The bank transfer records, foreign exchange receipts, source account statements and any evidence showing how the money was earned. Lenders need to satisfy anti-money laundering requirements, and incomplete deposit trails are one of the most common reasons applications stall.
Common mistakes new residents make
Most of these are avoidable. They usually come from assumptions carried over from how property finance works in another country, or from not realising how much the visa classification affects the process.
Assuming you can buy any property
The established dwelling ban catches many temporary residents off guard. You find the perfect house, make plans to offer, then discover you legally cannot buy it. Always confirm what property types you are permitted to purchase before you start searching.
Check FIRB property restrictions for your visa type before inspecting properties.
Underestimating total costs
Many new residents calculate their budget based on deposit plus standard stamp duty. The foreign buyer surcharge, FIRB fee, higher LMI premiums and potential annual land tax surcharge can add $70,000 to $100,000 or more to the total cost of a purchase in some states.
Get a full cost estimate including all surcharges before committing to a price range.
Applying to the wrong lender first
Walking into your everyday bank and applying for a home loan on a temporary visa often results in a decline. That decline goes on your credit file and makes the next application harder. Not all banks lend to all visa types. Check lender policy before applying, not after.
Use a broker who specialises in visa holder lending to target the right lender first time.
Not documenting the deposit trail
Funds transferred from overseas need a clear paper trail showing the original source, the transfer, and the arrival in your Australian account. Missing documentation slows the process and can result in a lender declining to accept the funds as a genuine deposit.
Keep every receipt, transfer record and foreign bank statement from day one.
Forgetting FIRB processing times
FIRB approvals can take 30 to 90 days. If your contract does not allow enough time for FIRB and loan approval, you could find yourself unable to settle. Make sure settlement timeframes account for FIRB processing, especially on off-the-plan purchases where dates can shift.
Apply for FIRB as early as possible and ensure contracts have adequate settlement periods.
Ignoring overseas debts
Australian lenders assess your global debt position. That credit card in your home country, the car loan you are still paying off, even a mortgage overseas. All of it reduces your Australian borrowing capacity. Close or reduce overseas debts before applying if possible.
Declare all debts upfront. Undisclosed debts discovered later can sink an application.
Common new resident scenarios
PR holder, first home buyer
You are in the strongest position of any new resident. You can access the Home Guarantee Scheme with a 5% deposit and no LMI, qualify for the First Home Owner Grant (up to $30,000 for new builds in some states), and access first home buyer stamp duty concessions. Apply through any mainstream lender. The process is essentially the same as for any Australian citizen.
482 visa, buying with spouse
If your spouse or partner is an Australian citizen or PR, buying jointly as joint tenants removes FIRB requirements, the foreign buyer stamp duty surcharge and the established dwelling ban. You can access up to 95% LVR with some lenders. Both incomes count for serviceability. This is the simplest pathway for temporary visa holders and the one that opens the most options.
482 visa, buying solo
You will need FIRB approval, can only buy new builds or off-the-plan, will pay the foreign buyer stamp duty surcharge and typically need a 10 to 20% deposit. The lender panel is smaller but workable. A specialist broker can identify which lenders accept your visa subclass and present your application in the way that lender expects to see it. Preparation and lender targeting matter more than usual.
Recently granted PR, limited credit history
Thin credit files are common for new PR holders. Most lenders care more about employment stability, savings pattern and income documentation than credit history length. If you have been working in Australia for six months or more with regular savings, you are likely assessable. Some lenders accept international credit reports as supporting evidence.
When should a new resident get finance help?
The honest answer: before you start inspecting properties. New resident lending has more variables than a standard application, and the cost of getting the lender choice wrong (a declined application, a credit enquiry, wasted FIRB fees) is real.
Getting specialist help makes particular sense if any of these apply to you:
A finance specialist who understands visa holder lending can assess your position, identify the right lender, structure the application to that lender's requirements and help you avoid the common mistakes that delay or derail new resident applications.
