Most financial institutions will lend up to 80% of the value of the property if used for owner occupy purposes. Some will only lend up to 70% of the value if it is an investment.
Loans granted for property purchases would generally be classified as investment loans, as the buyer is not usually able to occupy the property on a long-term basis. You will also need to have funds to pay property stamp duty, loan stamp duty, conveyancing costs, building and pest inspection, and lender cost such as application fees, etc. We will work out all costs and advise you accordingly.
Our remote application process means non-residents do not have to come to Australia to obtain a loan. We will coordinate and implement everything via email, faxes or phone calls.
To promote the development of new dwellings, non-resident buyers are generally restricted to purchasing the following:
- Real estate for residential redevelopment, where construction must begin within 12 months.
- Vacant land, where construction must begin within 12 months.
- Home units, townhouses etc. off the plan, where they are under construction or just completed, but never occupied or previously sold.
- 100 points of Identification – Photo ID containing your signature e.g: passport or driver's license.
- Proof of income.
- Savings account statements from all savings accounts.
- Proof of other assets such as property, motor vehicles, shares, managed funds, home contents.
- Evidence of all liabilities; personal loans, mortgage loans, credit/store cards, lease liabilities, interest free loans, any other debts.
The term non-resident refers to those people who do not have permanent residency status in Australia, i.e. those who do not hold a special category visa.
You will be required to make an application through the Foreign Investment Review Board. The Foreign Investment Review Board is a non-statutory body established in April 1976 to advise the Government on foreign investment policy and its administration. It examines proposals by foreign interests to undertake direct investment in Australia and makes recommendations to the Government on whether those proposals are suitable for approval under the Government's policy.
Foreign investors should check the rules with the Foreign Investment Review Board before signing a contract because there are a few exceptions to the rules. The application form and information can be found at www.firb.gov.au.