LKC Posted March 17, 2009 Share Posted March 17, 2009 Hi. We are currently in Sydney on a 457. We have only been here for a month, but have decided that we would like to start the process for PR (either ENS or 175) as soon as we are able to do so. We are currently renting, but would rather buy to give us and our children stability and security. Plus I don't like the idea of paying someone elses mortgage for them! I went in to a bank today, just to see how mortgages work, so that when our lease is up on the rental house (we paid 6 months up front) we know how to go about it and what roughly we could afford, to be told that they do not offer home loans to temporary residents and that we should wait until we have PR before we think about applying. Is this true of all banks? I am going to be disappointed if it is, becuase PR could be a year or more away, which is alot of money to be throwing down the drain. We have a failry large deposit already, and have our property in the UK which is on the market (and we are in negotiations about with a buyer), and have a chunk of equity in that too. I would be very grateful of any advice/experience that anyone wanted to share. Thank you! Link to comment Share on other sites More sharing options...
Guest proud2beaussie Posted March 17, 2009 Share Posted March 17, 2009 Probably the first thing i would say is that you shouldn't necessarily be put off by what your bank has said,there are many mortgage brokers around and if you can demonstrate that you have a good deposit and equity in other property then you shouldn't really have that much trouble with getting a mortgage,HOWEVER,you should note that there are conditions attached to a 457 visa which means that if you wish to purchase property whilst still classed as a temporary resident then you must first seek approval from the F.I.R.B (Foreign Investment Review Board) . The following is an extract from the F.I.R.B website at: FIRB: Foreign Investment Review Board - FAQ Real Estate Q6. I am a foreign person living in Australia on a long stay, temporary resident visa. Do I need approval to buy an established house to live in? A. Yes. Foreign persons temporarily resident in Australia for a period exceeding 12 months from the time of application for approval are eligible under foreign investment policy to acquire residential real estate. If the property being purchased is an established dwelling, that is, one that has been previously occupied or sold, foreign investment approval is still available provided that the dwelling is to be used as the person’s principal place of residence, not for rental purposes and the property must be sold when their visa expires or they cease to reside in Australia. For more detailed information, see Policy Documents. Q7. Can I exchange contracts prior to getting approval? A. Yes. You can enter into contracts for the purchase of property as long as those contracts are conditional upon obtaining foreign investment approval. If the contract is not conditional, you will be in breach of the Act. This condition is necessary to protect you (and your deposit) should approval not be given. If you sign a contract without such a condition, you will be committing a breach of the Act and may be subject to forced sale of the property. So if you are happy to comply with those conditions and are able to obtain the finance then there should not be any reason why you can't buy the property you are after. Good Luck Link to comment Share on other sites More sharing options...
LKC Posted March 17, 2009 Author Share Posted March 17, 2009 Thanks for that. I had heard of the FIRB and getting permission before, so I suppose that that demonstrates that it is possible. I wonder if some of the banks have cut down on giving loans to those with little (or in our case no) credit history because of the credit crunch/recession? I will try the bank where we hold our accounts I think, I just popped in to another bank because I was walking past. I may also give a mortgage advisor/broker a go, although at this stage we only want to find out if it is possible and if so, what are the factors that are taken in to account when they decide how much they are willing to lend (eg, is there a calculation based on salary, deposit amount etc). Again, thanks for that! Link to comment Share on other sites More sharing options...
Guest JoanneHattersley Posted March 17, 2009 Share Posted March 17, 2009 As far as I can remember ...we got our mortgage on a 457 visa and at that time Bankwest were the only ones that were prepared to lend to a non-resident. Worth looking at them! Good rates and deals too! Link to comment Share on other sites More sharing options...
Mongrel Posted March 17, 2009 Share Posted March 17, 2009 The biggest thing is commiting on a 457 in the current climate , as you lose yoursponsor you have28 days to leave , although i believe the time is being lifted. This recession is going to bite a bitharder 10% unemployment the figure being floated a round , if large scale cuts are made in employment temp visas will be examined by the powers that be Link to comment Share on other sites More sharing options...
furkew Posted March 17, 2009 Share Posted March 17, 2009 If you can wait for PR, you are able to claim the first home buyers grant, with a 457 you miss out (like we did :mad:) Personally I would wait until you get PR if you plan to apply soon. Link to comment Share on other sites More sharing options...
Guest JoanneHattersley Posted March 17, 2009 Share Posted March 17, 2009 We were in the throes of applying for PR and you have a year from date of mortgage to claim your homeowners grant! So if you get PR in that year you are still ok!!!! Link to comment Share on other sites More sharing options...
LKC Posted March 17, 2009 Author Share Posted March 17, 2009 That is interesting to read about the homebuyers grant Johatts, thank you. The thing is that it has proved to be fairly expensive to rent in Sydney (of course!), so by waiting for PR before we buy we are pretty much pouring money down the drain. We wouldn't even start to look until our lease was nearing its end in September anyway and hopefully by then our application for PR would be in. Hubby is investing in and opening a new optometrists practice (he is in effect his own boss although he works for Specsavers), so we will be tied to that for a minimum of five years. It was Bankwest that I went in to (they are the orange bank aren't they) and they said no way. So I guess their policy has changed. Link to comment Share on other sites More sharing options...
Guest Paul EDGE Posted March 17, 2009 Share Posted March 17, 2009 Hi I've PM'd you Cheers Paul Link to comment Share on other sites More sharing options...
Guest matthewr Posted March 17, 2009 Share Posted March 17, 2009 Hi, I had the same information given to me when I enquired about a mortgage with NAB. Then I rang Westpac and they said that I can get a mortgage here under a 457! Ring Westpac, they have a specialized department for migrant mortgages. Link to comment Share on other sites More sharing options...
Guest Posted March 18, 2009 Share Posted March 18, 2009 Hi there. I'm a mortgage broker over in Perth that is also on a 457 myself, and just to clarify that there are quite a few lenders that will still lend on 457 visa's! Criteria tends to be that you need a min of 20% deposit and clean credit history. It is correct that you cannot claim the First Home Buyers Grant, unless you have Perm residentcy within 12 momths of purchasing. The rules for FIRB changed on the 1st March!!! As long as the property you purchase is for your own occupancy and you reside there within 6 months of purchase, you no longer need FIRB approval to purchase. If you need any info PM me. Thanks David Link to comment Share on other sites More sharing options...
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