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The challenges faced in obtaining credit in Australia as a new migrant

New migrant Obtaining Credit Visa Australia House Property Migration Agents Brisbane Queensland

Eastern Financial Solutions (EFS) specialise in looking after the financing needs of new migrants and immigrants who settle in all states of Australia. Borrowing money in Australia may be vastly different to what you have experienced in the past in your home country and being new to Australia does mean there will be certain restrictions from various lenders when it comes to borrowing money. It is important to have access to a wide range of lenders who have different policies for non-residents. If you just deal with one bank, they may not lend to non-residents at all let alone a new migrant.

As a new immigrant to Australia you may only be able to borrow a maximum of 80% of the purchase value of a residential property prior to obtaining residency on a temporary or working visa. This means you would need to have evidence of a 20% deposit plus other associated fees. As your type of residency changes, so too do your options available for lending. As you progress through the stages from temporary visa – permanent visa – Australian citizen the lending options widen considerably. However, policies vary widely depending on which financial institution you apply to. Once you progress to a Permanent Resident you may then borrow up to a maximum 97% of the purchase value of a residential property. Please see below 2 case studies for comparison:

Case Studies

Case Study 1: Applicant is on a temporary resident visa or a 457 working visa and has purchased a property in Queensland for $500,000.

They would need a minimum of:

$100,000 – 20% Deposit

$10,100 – Government Stamp Duty

$2,000 – Conveyancing approximate

$112,100 Total required as a minimum.

Case Study 2: Applicant is on a permanent residency visa and has purchased a property in Queensland or $500,000.

They would need a minimum of:

$25,000 – 5% Deposit

$10,100 – Government Stamp Duty

$2,000 – Conveyancing approximate

$37,100 Total required as a minimum.

In addition to the different lending policies that may apply, it is important to be aware that non-residents applications might require approval from the Federal Government Treasury – Foreign Investment Review Board.

If you have any further queries regarding lending solutions for non-citizens, please don’t hesitate to contact Brad Nolan.


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