The Great Australian Dream has traditionally been a quarter acre block with a house on it. Your particular vision might vary, but there’s no denying the allure of Australian property.

However, as a non-resident it’s not exactly easy. You must be aware of tax obligations, including property tax and capital gains tax, which might differ from those for Australian residents. Despite the challenges, investing in Australian property can be worthwhile due to the stability of the market.

It's advisable to seek legal and financial advice to navigate the complexities of the Australian property market and lending practices.


VariableMore details
Online ExclusiveUP TO $4K CASHBACK
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
Online ExclusiveUP TO $4K CASHBACK

loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
VariableMore details
Refinance onlyAPPLY IN MINUTES
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance onlyAPPLY IN MINUTES

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
VariableMore details

loans.com.au – Variable Home Loan (LVR < 90%)

    Important Information and Comparison Rate Warning

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

    Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

    The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.

    Rates correct as of February 27, 2024.View disclaimer

    Can foreigners get a home loan in Australia?

    It’s doable, but most reputable lenders require you to be at least a permanent resident or citizen. The major banks - CommBank, NAB, Westpac, and ANZ - all have this requirement by rule, with some exceptions given, especially for New Zealanders.

    Temporary skill shortage visa holders (482) may also be eligible, but the options will likely be limited.

    • Lending Criteria for Non-Residents: Banks have stringent lending criteria for non-residents. This includes higher deposit requirements (often 30% or more), proof of stable income, and a good credit history.

    • Interest Rates and Fees: Non-residents often face higher interest rates and additional fees. Comparing various lenders is crucial to find the best deal.

    On top of the residency/citizenship requirement, if you manage to purchase a home you might also be classed as a foreign investor and have various extra considerations to make, including extra taxes and fees to pay. Non-residents are also permitted to buy only new dwellings, or existing dwellings only if their visa allows them to stay in the country at least 12 months.

    Capital gains tax considerations

    In Australia, the primary place of residence is not subject to capital gains tax if you’re an Australian citizen or permanent resident. If you’re a temporary resident, different rates apply.

    The foreign resident capital gains withholding (FRCGW) policy applies to those disposing of taxable property, and currently stands at 12.5% if the property is worth more than $750,000.

    Workarounds - applying with an Australian spouse

    Home loans for 820/801 or 309/100 visa holders (temporary and provisional partner visas) may be possible with a range of lenders. If your partner is a citizen or permanent resident, has a strong record of income and savings, and proof of employment in Australia, you may be able to create a joint application.

    Home loans for expats

    The news is a bit better if you’re still an Australian citizen but living overseas; many banks and lenders will still write you a home loan. Applicants will likely need to show a strong history of stable employment, and even then, a lender might only consider a portion of this income. This is to cover for fluctuating exchange rates and the nature of employment being different overseas.

    Photo by Nao Takabayashi on Unsplash