Skilled Migrant Professionals December 2015

Finance Home Sweet Home Buying a home on a 457 visa By Pamela Palmqvist, Mortgage Broker at Element Finance A s a migrant, you may be unfamiliar with the regulations and procedures you need to follow when purchasing property on a 457 visa. This guide cuts through the confusion and gives you all the information you need to buy your new home in Australia, so you can start living your Australian dream. FIVE FACTS YOU NEED TO KNOW 1. No Large Deposits Required Some banks and mortgage brokers believe a 20 per cent deposit (plus stamp duty and legal fees) is required, however, there are exceptions to this. If you’re in a professional occupation, with a strong employment history, you can often obtain finance with only a 10 per cent deposit. Additionally, if your partner is an Australian permanent resident or citizen, you will only need a 5 per cent deposit. You may also be eligible for a First Home Owner Grant and stamp duty concessions. 2. Strong Employment History – Not Essential While a solid employment history can help reduce the deposit required, it’s not essential for buying a home. You can still get approved, even if you’ve only been in your current job for three months or less. Several proven techniques can be used to present your application in the best possible light to satisfy the lender’s criteria. A specialist mortgage broker will be familiar with the correct approach to take with each lender, helping you to obtain a stress-free approval. 3. Visa Expiration If you’ve been living in Australia for several years and your visa is due to expire in the current year, you can still buy a home. It doesn’t matter how much time remains on your visa, as long as it was valid for more than 12 months when issued. Buying when the visa is about to expire, however, is not recommended, since you’ll generally still need to sell the property within three months of leaving the country. Although, many 457 visa holders eventually apply for permanent residency and, therefore, end up not selling. 4. FIRB Approval Before buying property in Australia, 457 visa holders generally require approval from the Foreign Investment Review Board (FIRB). If your partner is an Au stralian permanent resident you will still need approval to buy any interest in a property (your partner does not need approval in this case). If your partner is an Australian citizen, however, and you are purchasing as joint tenants, then you can buy together without FIRB approval. Fortunately, approval is a relatively quick and painless process, and applications are submitted through an online system. Subject to approval, you may buy any number of properties or blocks of land. The foreign investment rules normally require you to sell your property if you move from Australia, but if you buy a newly-built dwelling, or you build a new home on vacant land, then you can retain it as an investment property when you leave. 5. Specialist Mortgage Broker The first step is to obtain home loan pre-approval. Mortgage policy for 457 visa holders is complex and each bank has different rules. Getting it right the first time is important, or you risk damaging your Australian credit rating. Most brokers aren’t used to working with this type of application, and may not be able to get your home loan approved. That’s why it’s essential to deal with a specialist mortgage broker, who understands the unique needs of 457 visa holders. The right broker will be able to interpret the regulations surrounding non-resident finance in Australia, and they will be familiar with the policies of all Australian lenders – meaning your home loan can be approved quickly and at the lowest possible interest rate. December 2015 | www.smpmagazine.com.au 31

Skilled Migrant Professionals December 2015 | Page 31