Borrowing in Australia as a foreigner: visa holders and investors
Australia's four major banks, Commonwealth Bank, Westpac, ANZ and NAB, hold most home loans, with regional banks, mutual banks and non-bank lenders making up the rest. Their policies split borrowers into citizens and permanent residents, temporary visa holders, and non-residents living overseas.
Permanent residents borrow on almost the same terms as citizens, whereas loans for foreigners in Australia on temporary visas carry lower limits, and Australia loans for foreigners are assessed case by case. Temporary residents on skilled or partner visas are accepted by many lenders, but with lower maximum loan-to-value ratios. Non-residents abroad face the toughest conditions and the strictest property rules, so loans for non-residents in Australia are the hardest to obtain and a loan for foreigners in Australia usually needs a large deposit.
ASIC, APRA and the RBA
The Australian Securities and Investments Commission licenses credit providers and brokers and enforces responsible-lending duties under the National Consumer Credit Protection Act. Every lender or broker must hold an Australian credit licence or act as a credit representative listed on ASIC's professional registers.
APRA supervises banks prudentially and expects them to assess loans with a serviceability buffer above the actual rate. The Reserve Bank of Australia sets the cash rate, which flows quickly into variable home-loan rates because most Australian mortgages are variable.
Getting a bank account before landing
Several major banks let new migrants open an account online up to a few months before arrival, using a passport and visa details. The account can receive transfers immediately, and identity is confirmed at a branch within weeks of arrival.
A tax file number should be provided quickly; without it, banks withhold tax on interest at the top marginal rate. Non-residents remaining overseas can sometimes keep or open accounts, though withholding tax on interest then applies at the non-resident rate.
Comprehensive credit reporting
Equifax, Experian and illion operate under comprehensive credit reporting, which records repayment history as well as defaults. Overseas records are not included, although Experian and some lenders accept international reports for selected countries such as the UK or New Zealand.
A modest credit card, phone contract and utilities in the newcomer's own name start the file. Lenders also review bank statements in detail under responsible-lending rules, so regular savings and controlled spending matter as much as the score.
Australia loans for foreigners and the established dwelling ban
Foreign persons, including most temporary residents, need FIRB approval before buying residential land, and application fees rise steeply with the price. Since 1 April 2025 a two-year ban stops foreign persons from buying established dwellings, with limited exceptions, until 31 March 2027.
New dwellings and vacant land for building remain available with approval, subject to construction deadlines. Foreign owners who leave a dwelling empty for more than six months a year pay an annual vacancy fee, which was raised substantially in 2024.
How lenders treat foreign borrowers
For loans for foreigners in Australia, temporary residents with Australian employment are often lent up to 80 per cent of the value, sometimes 90 per cent with mortgage insurance for certain visas. Non-residents earning abroad typically face a cap of 60 to 70 per cent, and some major banks no longer lend to them at all.
Foreign income is discounted for currency risk, sometimes by 20 per cent or more, and only certain currencies are accepted. Lenders also verify that FIRB approval has been granted before settlement, so the approval letter becomes part of the credit file.
Comparing borrower categories
| Category | FIRB needed | Established homes | Typical maximum LVR |
|---|---|---|---|
| Citizen or permanent resident | No | Allowed | Up to 95 per cent with insurance |
| Temporary resident in Australia | Yes | Banned to 31 March 2027 | Around 80 per cent, lender-dependent |
| Non-resident abroad | Yes | Banned, new dwellings only | About 60 to 70 per cent |
| Spouse of citizen buying jointly | Usually exempt | Allowed as joint tenant | As for residents |
Rates and state surcharges
The RBA began cutting the cash rate in 2025 after a long tightening cycle. Variable rates reflect those moves, and non-resident loans carry an extra margin. Exact pricing differs between lenders and changes often, so written quotes are essential.
States add foreign purchaser surcharges on stamp duty, for example 9 per cent in New South Wales and 8 per cent in Victoria, plus annual land tax surcharges. These can exceed the deposit on a new apartment and should be budgeted from the outset.
Car loans and personal loans for foreigners in Australia
Car finance is available to visa holders through banks, dealer finance and specialist lenders, usually requiring the visa to outlast the loan term. Personal loans follow similar logic, with the remaining visa duration and Australian payslips weighing heavily in the decision.
Business owners on investor or skilled visas can borrow against commercial property or business cash flow once Australian trading accounts exist. Buy now, pay later products are now regulated as credit, so lenders must check affordability before approving new users.
Who stands the best chance
Skilled workers on long-term visas with a permanent residency pathway, stable Australian salaries and a clean local record get the widest choice. Non-residents with large deposits can still finance off-the-plan or new homes, mainly through specialist lenders and a few smaller banks.
Applicants whose visa expires within a year, who are on probation with a new employer, or who earn mostly commission face extra questions. A partner who is a citizen or permanent resident can change the picture, since joint purchases with an Australian spouse are generally exempt from FIRB approval.
Steps before signing a contract
- Confirm whether you are a foreign person under FIRB rules.
- Check that the property is a new dwelling or vacant land if the ban applies.
- Lodge the FIRB application and pay the fee before or conditional on contract.
- Get pre-approval from a licensed lender or broker listed with ASIC.
- Budget stamp duty surcharges, land tax and vacancy fees.
- Use a solicitor or conveyancer to check the contract and settlement terms.
- Keep evidence of occupation or rental to avoid vacancy fees.
Warning signs in Australia
- Agents claiming a loophole lets temporary residents buy existing homes during the ban without legal advice.
- Offshore loan offers that require a FIRB fee or deposit paid to the lender rather than to the government.
- Fake investment schemes using celebrity endorsements, which ASIC's Moneysmart regularly flags.
- Brokers who cannot give an Australian credit licence number.
- Payment redirection emails before settlement.
Can a temporary resident buy a home in 2026?
Borrowing in Australia as a foreigner on a temporary visa covers only new dwellings or vacant land, and only with FIRB approval, which shapes every loan for foreigners in Australia, because established homes are covered by the ban until 31 March 2027. Narrow exceptions exist, so specialist legal advice is needed before relying on one.
Do Australian banks accept foreign income?
Some do for selected currencies, applying a discount for exchange-rate risk and asking for overseas tax returns and payslips. Income in currencies outside the accepted list may be ignored entirely, making the application fail.
What happens to a FIRB-approved home when leaving Australia?
Conditions attached to past approvals for established homes often required sale after the owner's visa ended. Owners must check their specific approval letter and comply, because penalties under foreign investment law can be heavy.
How can a borrower complain?
Borrowers should use the lender's internal dispute process first, then the Australian Financial Complaints Authority, a free external scheme. AFCA can award compensation, and ASIC can act against systemic breaches of responsible-lending rules.
Specialised guides for this country
Private lenders offering this loan
- Plenti — Australian fintech lender that considers personal loan applications from eligible visa holders and temporary residents living in Australia.
- Home Loan Experts — Australian mortgage broker arranging home loans for non-residents, foreign buyers and Australian expats earning their income overseas.
- Hunter Galloway — Brisbane-based mortgage broker helping Australian expats and overseas-based buyers secure home loans for property in Australia.
- HSBC Australia — Australian arm of the international banking group, supporting non-residents and expats who want to finance a property purchase in Australia.
Useful organisations and resources
- Herbert Smith Freehills Kramer: FIRB update — International law firm briefing on 2025 changes to foreign investment rules for Australian residential property.
- Maddocks: FIRB guidance notes — Australian law firm summary of updated FIRB guidance notes and what foreign buyers must now consider.
- Australia Migrate — Migration information site discussing how the established dwelling ban affects temporary visa holders.
Official and legal references
- FIRB Guidance Note 6: Residential land — Official Treasury guidance on foreign persons buying residential land, including the temporary ban on established dwellings.
- ATO: foreign investment in residential property — Australian Taxation Office pages on FIRB applications, fees, the register of foreign ownership and vacancy fees.