February 11, 2014
It is said that one of the most stressful undertakings in life is to obtain a home mortgage. Throw in being a temporary resident on a 457 visa and the process becomes even more daunting. On the top 50 of life’s stress factors list, “obtaining a home mortgage” comes in at number 47. Factor in “changing residence” at number 40 and the whole process becomes one big ball of angst! (Carlopio, J., & Andrewartha, G. (2012) Managing Stress: In Developing Management Skills: A Comprehensive Guide for Leaders (5th Ed., pp 122- 176)
Arranging your finance through Mortgage Choice is one way of alleviating some of that stress. As a Mortgage Choice Broker, Mark Hevron can help lessen or even remove many of the stumbling blocks that dealing with banks and other financial institutions can throw up for the unwary. Although the process as a temporary resident on a 457 visa may be a little more complicated, there are plenty of 457 home loan options available to you.
Before you can have your home building purchase finalised you will need to seek Australian government (FIRB) approval. The Foreign Investment Review Board requires all holders of a temporary 457 visa submit their application for approval before they can go unconditional on a contract. This is true even if you are residing in Australia.
FIRB approval is a relatively easy process and approval is virtually guaranteed if purchasing vacant land and building. It can be a little more complicated if wishing to purchase an established home.
As a temporary resident on a 457 visa, you are generally limited to an 80% loan value ratio or LVR. This means the loan cannot exceed 80% of the official value of the property purchase. Therefore a 20% deposit plus purchasing costs such as stamp duty will be required. However there are exceptions to this 80% rule. For example, if you are in a professional occupation with at least 12 months in your current role or 2 years in the same line of work then a 90% LVR may be available.
If you are considering purchasing in conjunction with your Australian or permanent resident spouse (married or de facto), then you may have the option of a 95% home loan providing you have 5% genuine savings. In this scenario the First Home Owners Grant may be available as well as any applicable stamp duty concessions.
So, to recap - If you are on a 457 Visa, have been in your current employment for 12 months or in similar line of work for 2 years, and have saved up part of your deposit - then a home loan to 90% LVR may be available to you. That is, you could purchase your new home in Australia whilst on a 457 visa with just 10% deposit plus purchasing costs. Typically purchasing costs (like stamp duty etc) equate to roughly 5% of the purchase price.
Telephone or email me now
Mark Hevron 0418 915 920
to arrange a time to review your situation at a time and place convenient for you.
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