Is It Easier Buying Australian Property If You are a Permanent Resident?
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Australia is a dream location for many individuals. So much so that thousands of foreigners apply for permanent residency Downunder every year!
Settling in Australia forever is a big step. One way to demonstrate your commitment as a permanent resident is to buy an Australian home.
But, is it easier to buy an Australian home as a permanent resident as opposed to being a temporary resident?
Read on to discover everything you need to know about buying an Aussie home as a permanent resident.
Who Is a Permanent Resident?
A permanent resident of Australia has the right to stay Downunder, even if they are currently working overseas. You will have entered Australia originally on a visa that you have extended and then applied for permanent residency.
Permanent residency does not grant you Australian citizenship, however, and you do not receive an Aussie passport.
However, you can stay in Australia indefinitely and buy a home without the additional requirements placed on foreign nationals.
Permanent residents can apply for Australian citizenship if they intend to stay in the country. You should have lived in Australia for the last 4 years with a gap of no longer than 12 months in total.
You must possess a good character, knowledge of Australia, speak English, and have a close and continuing link to Australia.

Can I Buy a House If I am a Permanent Resident In Australia?
Odin Mortgage can help you secure a great home loan as a permanent resident to buy Australian property. It is much easier to buy an Australian property as a permanent resident than as a foreign national or temporary resident!
Are you a permanent resident Expat, looking to buy a property back in Oz? You may discover that lenders are wary of foreign income due to issues with currency and exchange rates.
If you earn Aussie income as well as foreign income, lenders may be more accepting. However, there is a chance that your foreign-earned income is discounted before lenders will consider you for a home loan.
Odin Mortgage will negotiate with respected lenders to ensure the maximum amount of income is counted towards your borrowing power. The total money you can borrow is increased significantly by using our expert broker services!
Get a free Australian mortgage assessment today.
What Evidence Will Lenders Need From Permanent Residents?
Our professional brokers will guide you through the different evidence required by lenders as a permanent resident applying for a home loan.
You will need to provide proof of your income and your work history. A series of payslips, bank statements, and your employment contract may be asked as evidence.
Is your spouse an Aussie citizen? Entering a joint mortgage with an Australian citizen will help your application. However, if your spouse is a temporary resident or foreign national, a joint application may hinder your chances of success!
You will also need to prove your ID and evidence of any assets, liabilities, and expenses.
Here is a checklist of evidence that your lender may need to see:
Home Loan Evidence Checklist |
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How Can I Apply For a Home Loan as a Permanent Resident?
Visit Odin Mortgage and apply for a home loan as a permanent resident! We are Expat experts who are waiting to help you buy Australian property!
Leap and contact us today, regardless of your location!
We will ask you for your details and evidence to submit. We will then search through a vast range of lenders to find the best home loan for you!
Here are the top 5 home loan phrases to be aware of when applying for your home loan as a permanent resident!

1. Borrowing Power
We will calculate your borrowing power to determine how much you can borrow for a home purchase. This will provide you with an idea of what price tag to search for when house hunting!
Borrowing power is calculated by considering your declared income. As a permanent resident overseas, some of your income may be in a foreign currency. Additionally, a portion of your income may be made up of commissions or bonuses.
Some lenders may not consider commissions or bonuses in your income total. Furthermore, income earned in a foreign currency may be reduced in value by the lender. This will result in lowering your borrowing power and reducing how much you can borrow for a home purchase.
Odin Mortgage’s brokers are specialist negotiators! We will negotiate with lenders to guarantee higher amounts of your income are used in your borrowing power calculation.
In addition, the number of dependents you have and your credit score will feature highly in your borrowing power calculation.
Remember to close down any unused credit limits you own as these limits will harm your borrowing power! If you have a $3,000 credit card limit but owe $0, the $3,000 limit will be totalled as a debt.
Find out how much you could borrow by using the Borrowing Power Calculator at Odin Mortgage today!
2. Loan to Value Ratio
Your loan to value ratio will be totalled to assess your ability to pay back the home loan. Also known as LVR, this calculation looks at the amount of deposit you are paying against the property value.
So, if you are placing a $150,000 deposit on a $500,000 property, your LVR is 70%. This is a respectable ratio and will attract lenders. Ultimately, the lower your LVR ratio, the more attractive your application is to lenders.
A higher LVR means that there is less equity on the home. Lenders worry about low equity properties, after all, what if you defaulted on repayments?
Although, there are some lenders who will consider a smaller deposit. Your Odin Mortgage broker will negotiate with lenders to increase your possibility of acceptance!
However, a smaller deposit of less than 20% of the property price may result in the need to pay LMI.
LMI is a Lender’s Mortgage Insurance and requires that you pay an insurance package in the event of your home loan repayments defaulting. This is an additional expense that many home buyers will want to avoid paying!

Get a free Australian mortgage assessment today.
3. Repayments
We will tell you which interest rates and loan terms are available to you, calculating your likely monthly repayments.
This will help you to budget your finances and calculate whether you can afford the home loan repayments. Try to ensure that your monthly repayments do not exceed 30% of your monthly income. This is a good starting point when assessing repayment affordability.
Ask your broker how much your lender will let you pay in additional repayments each year. Paying extra instalments will ensure that the amount you borrowed will decrease faster, resulting in less interest payable. This will save you money in the long term!
Remember that your repayment each month will consist of a principal repayment and an interest repayment.
Your principal repayment repays the amount you borrowed to buy the house from the lender. Your interest repayment solely consists of the interest payable to the lender.
Check out our Monthly Repayment Calculator today to find an estimated repayment figure for your home loan!
4. Interest Rates
Will you pay a higher interest rate on a home loan as a permanent resident when compared to an Australian citizen? No, not at all! We will secure you a competitive interest rate, placing you at no disadvantage.
Check out the latest comparative interest rates available in Australia at Odin Mortgage today!

5. Loan Types
Your broker will ask you whether you want a fixed-rate loan, a variable rate loan, or a split rate loan, but what is the difference?
A fixed-rate loan will offer you a fixed interest rate across the loan term of 1 to 5 years. Your repayments will not change across this term, despite any fluctuations in the economy.
However, you will usually pay a higher interest rate to secure a fixed deal. You will also be incapable of switching deals or selling your home during the loan period without paying an exit fee.
Variable interest rate loans are more flexible and you will not need to pay an exit fee to sell your home or switch deals. You can also secure a much lower interest rate with a variable interest rate.
Although, your repayments may rise and fall without notice with a variable interest rate home loan. This may result in difficulty budgeting and in extreme cases rendering the repayment too expensive.
A split rate offers a fixed portion of the loan and a variable portion of the loan. You can achieve some stability with the fixed-rate loan portion, but enjoy some flexibility with the variable rate portion.
What Is a Temporary Resident in Australia?
A temporary resident in Australia is allowed to stay in the country for over 12 months. You could hold one of many different visas that allow you to stay in Australia longer than 12 months. Visas may include student visas or temporary skilled shortage visas.
Once a temporary visa has less than 12 months left, you will be classed as a foreign non-resident. Your time in Australia will begin to count down unless you act to extend your visa.
Sometimes, a temporary resident is in the process of applying to become a permanent resident. They may hold a bridging visa for the time being until the application process is complete.

Can a Temporary Resident Buy a House in Australia?
Temporary residents can buy a home in Australia, although the process is longer and more costly. You can buy one established property, or unlimited new properties, as a temporary resident.
Similar to foreign nationals, however, temporary residents must apply to the Foreign Investment Review Board and gain permission to buy. There is also a foreign stamp duty surcharge that you will need to pay.
The Foreign Investment Review Board
The Foreign Investment Review Board oversees foreign investment in Australia to ensure Aussie residents are not disadvantaged.
You will need to spend several thousand dollars making an application to buy a property in Australia. However, you can still get approved to buy your Australian property with Odin Mortgage before your permission has been granted.
The application process is necessary and should be complied with. Buying a property in Oz without FIRB approval can result in fines of up to $3,300,000! You could also face up to ten years in prison!
Foreign Stamp Duty Surcharge
Every property in Australia comes with a stamp duty fee once it has been bought. The exact fee payable will vary on the location of the property as well as its value.
Unless you are an Australian citizen or permanent resident, you will need to pay a foreign stamp duty surcharge. This is in addition to the standard stamp duty fee that all home buyers pay.
Each state and territory in Australia sets its own surcharge, but this is usually 7% – 8% of the property value. However, if you purchase a home in Tasmania, Australian Central Territory, or Northern Territory, a surcharge is not applicable.
You can find out how much stamp duty and foreign stamp duty surcharge you will pay today! Use Odin Mortgage’s Stamp Duty Calculator for an instant calculation!

Contact Odin Mortgage Today!
Odin Mortgage are Expat experts who can help you buy a home in Australia, whatever your situation! We can also help you to refinance an existing property overseas easily if you are looking to raise cash!
Buying an Australian home as a permanent resident is easy! It really is an effortless task with Odin Mortgage. Our service to you is free as we take our fee from the successful lender!
Request a call back from Odin Mortgage today, and read our FAQs to discover how our mortgage brokers can help you!
Get a free Australian mortgage assessment today.
Frequently Asked Questions
Can a permanent resident purchase property in Australia?
Yes, Australian permanent residents have the same great opportunities available to them that an Australian citizen does. Competitive rates galore, you can choose the lender and the deal that you like.
Mortgage brokers at Odin Mortgage will help you achieve your goal of buying property in Australia. Whilst we can help any permanent resident buying property, Australia contains the magic that makes Downunder a desirable place to live.
If you are new to the area, we can recommend an amazing set of real estate agents to help with your house hunt.
Can I buy a residential property or investment property as a permanent resident?
Permanent residency opens all opportunities your way! You can buy a residential property or an investment property, tailoring the home loan to your needs.
Calculate a purchase analysis for investments using Odin Mortgage’s Investment Property Calculator, determining how much your investment will cost you!
Can only Australian citizens buy vacant land in Australia?
No, permanent residents can easily buy vacant land when aiming to buy property in Australia. You can buy property in Australia in the form of established dwellings or new builds, purchasing residential property, or investment opportunities.
Contact Odin Mortgage and discover what our brokers can do for you!
How easy is it to buy an Aussie property as a foreign national or temporary resident?
Foreign nationals and temporary residents can buy property in Oz. You will need to apply for approval from the FIRB, and be ready to pay the application fee and the stamp duty surcharge fee.
However, you can only buy one established dwelling if you have this status. You can buy several new build properties, however.

See What You Qualify For
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