What is a temporary resident mortgage?

The product itself is familiar: a mortgage over a property you live in, and sometimes one you rent out. What changes is the assessment. Lenders read a temporary visa as higher risk, so they test visa length, income evidence and deposit size harder than they would for a citizen.

Some features narrow too. High LVR lending, interest-only terms and the longest loan terms can be limited or unavailable, and fixed rate choices are thinner. Availability swings between the majors and specialist lenders for temporary residents, which is why two lenders can read the same visa holder eligibility file very differently.

Skilled work visas such as subclass 482 are commonly considered where the remaining term and the employer both look stable. Temporary graduate 485 visas are accepted by some lenders with tight documentation of employment. Provisional partner visas, including 309 and 820, are often viewed more favourably again where the application is lodged and the bridging position is clear.

Student visas draw the most caution, and post-study work rights improve the picture. Bridging visas turn on the substantive application underneath them and the conditions attached. Some lenders exclude short-term visas outright or set a minimum remaining validity, and those rules change often enough that last year's answer is not this year's.

Expect to fund a larger share of the purchase yourself. Where mortgage insurance is off the table, the deposit has to carry the gap, so a small deposit application often fails unless a guarantor or permanent resident co-borrower comes in. Borrowing power is assessed on net income, living expenses and existing debts, and temporary residents usually land below a resident on the same salary.

Then the overlays. FIRB approval can be required depending on your visa and the property type, and its processing time affects settlement. Established dwellings are currently closed to foreign persons under a time-limited ban, while new dwellings and vacant land still go through the approval process. States can charge foreign purchaser stamp duty surcharges. If you later sell an investment property, capital gains tax treatment depends on your residency, so check with the ATO. Once permanent residency is granted, most lenders will refinance or reprice on standard terms.