Self Employed temporary resident home loan mortgage finance for non residents living in australia without permanent residency on a business visa

'Australia's Experts in Temporary and Non-Resident Home Loans'

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Home Loans for Self Employed Temporary Residents

This page is for self employed migrants of Australia who would like to buy property in Australia and have been granted a visa to establish a business or manage a new or existing business. Generally the non resident visa holder would be on a Business Owner visa such as a subclass 160,161,162,163,164 or 165.

Please note that information on this page does not apply to migrants on a 457 visa or migrants who are purchasing with an Australian citizen or permanent resident. For these applicants please see menu to right.

How much can I Borrow?

Temporary resident business owners can borrow up to 80% of the purchase price thereby requiring a 20% deposit plus purchasing costs like stamp duty and legals. An LVR of 90% is available to the right applicant on a case by case basis.

To qualify for a home loan standard self employed home loan rules apply. These rules require that self employed applicants provide 2 years financials/tax returns to prove their income and as a general rule, the bank will average the 2 years income figures to calculate your income for borrowing capacity purposes.

In some cases only one full years financials/tax returns will be required. This can work in the borrowers favour in circumstances where the most recent financial year shows excellent income but the previous year shows a smaller income/profit. Instead of averaging out the incomes to determine borrowing capacity we can take the income only from the most recent year which will result in a higher loan amount.

Is the Interest Rate Higher Because I am a Non Resident Migrant?

No. Whilst many lenders will not lend to self employed applicants who do not hold Australian citizenship or permanent residency, there are lenders that will lend in these circumstances and will do so at normal standard home loan interest rates.

Low Doc Home Loan for Temporary Residents

It is quite common for self employed applicants to not have up to date financials and tax returns. If the above rules were applied then self employed applicants without up to date financials would never be able to get a home loan until they had their most recent tax returns completed and the ATO had issued notice of assessments.

Low Document Home Loans (Low Doc) are specifically designed for self employed applicants in this situation who do not have their most recent tax returns and financials completed and up to date. Essentially, providing the borrower has enough deposit, clean credit history and ABN and GST registration for a minimum of 6 months, some banks will dispense with the usual requirement for 1-2 years full financials and tax returns.

Instead of and in lieu of these documents some lenders will require one or two of the following;

1) One year's worth of Business Activity Statements (‘BAS’), or

2) Letter from accountant, or

3) Income declaration signed by applicant confirming income

4) If seeking low do to 80% will need proof of self employment in home countries for 2 years or more.

The maximum LVR on a low doc for a self employed temporary resident is 80% if on a migrant visa subclass 163, 164 or 165. All other types of migrant visas for self employed migrants will be limited to 60% LVR thereby requiring 40% deposit plus costs. Note, the 40% deposit can be equity in another property if the applicants already own property in Australia or equity drawn from property held overseas.

Why use Map Mortgage Brokers

Lending policy for non residents varies widely with every bank having their own unique policy and requirements. This difference in lending criteria can result in one bank approving your home loan application whilst another would decline the application or require you to jump through hoops before deciding to approve.

For example, some lenders will decline an application from a self employed temporary resident because;

1) They do not lend to non residents at all (very common),

2) The bank does lend on a low doc basis (ie, they do not do low doc home loans),

4) The lender requires 2 years financials and tax returns (when another lender would only require 1 years worth), or

4) Low Doc policy requires ABN and GST registration for 2 years (when another lender would only require 6 months).

This is where MAP Mortgage Brokers can help. MAP knows the complex home loan lending policy for self employed temporary residents because we specialise in home loans for non residents.

Do not risk a decline (or another decline) on your credit file. We do not charge you for our services so give us a call or enquire online for a no obligation assessment.