Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: October 13, 2026 View profile →

Who Needs FIRB Approval? The Core Distinction

FIRB approval is a requirement under the Foreign Acquisitions and Takeovers Act 1975 (FATA) for “foreign persons” acquiring certain Australian assets, including residential real estate. The critical question is: are you legally a “foreign person” under Australian law?

Under Australian foreign investment policy, you do not need FIRB approval if you are:

• An Australian citizen living in Australia or living abroad
• A foreign national holding Australian permanent residency (conditions apply)
• A New Zealand citizen (for certain property types)

This means that if you are an Australian citizen working in Singapore, Hong Kong, Dubai, London, or New York, you are not a foreign person under FATA. You can purchase residential property in Australia without applying to FIRB, regardless of how long you have lived overseas.

The exemption is citizenship-based, not residency-based. That distinction is important and often misunderstood.

What About Australian Permanent Residents Living Overseas?

Permanent residents occupy a more complex position. Permanent residents generally do not need FIRB approval — but this is subject to individual circumstances and the type of property being acquired.

Key considerations for permanent residents living overseas:

• They are typically exempt for established dwellings if they are purchasing as a primary residence
• Temporary residents (those on temporary visas) face different and more restrictive rules
• The exemption status can depend on how “foreign person” is defined at the time of the transaction

If you hold permanent residency but are uncertain about your status, this is precisely the kind of scenario where specialist guidance from a regulated mortgage broker with FIRB compliance experience is valuable before you sign a contract.

What Are the Current FIRB Fees for Foreign Investors?

For those who do need FIRB approval — primarily foreign nationals investing in Australian property — fees apply at the time of application. According to the University of Technology Sydney’s analysis of Australia’s foreign investment landscape published in February 2026, the current FIRB application fee for foreign persons is $15,100.

It is worth noting that FIRB fees are tiered based on the value and type of the property, and fee structures are subject to change by the Australian government. Always verify current FIRB fee schedules directly with the Australian Treasury or a regulated professional before budgeting for a purchase.

For Australian citizens, this fee is not applicable. For foreign national clients of ODIN Mortgage, FIRB compliance guidance is built into the purchase process from the outset so the cost and timeline are never a surprise.

What Is the FIRB Approval Time Frame?

For those who do require FIRB approval, understanding the timeline is critical for structuring an offer and settlement schedule.

Under the Foreign Acquisitions and Takeovers Act, the statutory review period is typically 30 days, but the government can extend this period by issuing an “interim order,” which in practice can extend the review to up to 90 days or longer for complex cases. Certain investments in Australian land by foreign persons are classified as Notifiable Actions, requiring prior approval before the transaction proceeds.

Practical implications for buyers:

• Build FIRB timeline into your contract’s finance and settlement clauses
• Do not exchange contracts unconditionally before approval is received
• Flag the FIRB requirement to your conveyancer and mortgage broker at the earliest stage
• Complex commercial or large-scale residential acquisitions may face longer review periods

For Australian citizens, this timeline is irrelevant to your own purchase. However, if you are purchasing in a development where the vendor has FIRB obligations, or if you are co-investing with a foreign national partner, the rules can intersect.

How Does FIRB Status Affect Your Expat Home Loan Application?

FIRB status and mortgage eligibility are two separate assessments, but they interact in practice. An expat home loan in Australia is assessed on your income, residency status, currency of earnings, loan-to-value ratio, and lender policy — not on FIRB approval status alone.

For Australian citizens living overseas applying for an Australian expat mortgage, the primary lending challenges are:

• Foreign income shading: Most lenders discount overseas income by 20-40% depending on the currency and country of employment. Some lenders apply more aggressive shading, others less.
• Currency risk assessment: Lenders treat AUD income, SGD, HKD, USD, AED, and GBP differently. Acceptance policies vary significantly by lender.
• Verification requirements: Payslips, employment contracts, and bank statements often need to meet specific format requirements depending on the lender.

ODIN Mortgage holds proprietary lender-by-lender data on how 40+ Australian lenders treat foreign income — including income shading policies, acceptable currencies, and verification requirements. This information is not publicly available and is the difference between a loan approval and a needless decline.

Borrowing capacity, LVR, and approval outcomes always depend on individual circumstances and lender policy, which is subject to change.

Frequently Asked Questions

This article contains general information only and does not constitute personal credit advice. Borrowing power, LVR, and approval outcomes depend on individual circumstances and lender policy, which is subject to change. Please consult a regulated mortgage professional for advice specific to your situation.

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