Spouse visa mortgage

How to purchase a property with your partner while on a temporary visa?

Are you on a Spousal Visa and have approached mortgage brokers and financial institutions, only to be told you can only borrow up to 80% of the value for the property you are looking to purchase?

You will be happy to know then, that this is not the case – if you apply with the right lender it is possible to obtain a mortgage of up to 95% of the property value!

Which types of Partner Visas are eligible for a mortgage?

Partners or fiancés of Australian citizens, Australian permanent residents or eligible New Zealand citizens may apply to enter and remain permanently in Australia. Partner category migration may apply to:

• People intending to get married (fiancés).
• Married partners.
• De facto partners (including those in a same-sex relationship).

The most common visa types that are accepted for a mortgage are:

• Partner Temporary Visa (Subclass 309).
• Permanent Visa (Subclass 100).
• Prospective Marriage Visa (Subclass 300) – Note that additional lending criteria may apply.
• Spouse or Interdependency visa (subclasses 310/100 and 826/814).

All of these visa types are acceptable for a home loan. If you are another type of temporary resident, such as a 457 visa holder, that has met an Australian partner after moving to Australia then you may still be eligible to borrow 95% if your co-borrower is an Australian Citizen.

How do I qualify for a mortgage on a Spousal Visa?

If you intend to borrow more than 80% of the property value, there are a number of hurdles that you will need to jump through.

Such as, you will need to be able to prove that you have stable employment and a steady income. You have sufficient surplus funds at settlement to cover the cost of Lenders Mortgage Insurance (LMI) and solicitor/conveyancer’s fees.

You will need to have a strong asset position and (at the very least) 5% in genuine savings. Genuine savings is money that you have saved yourself, not money received from your parents or from the sale of assets overseas.

How much can I borrow?

The amount you can borrow can vary greatly between different lenders, this is largely because of different policy restrictions lenders impose on those applying for a mortgage while on a Spousal/Partner Visa.

This is why it is critical to speak with an experienced mortgage broker who has the ability to negotiate a better deal for you, and understands the different policy restrictions each lender has.

A mortgage broker can assist you in determining as to how much you can afford to borrow by entering your details into the serviceability calculator of several lenders that accept people on partner visas.

For more information on mortgages of this nature please read the spouse visa mortgage page on the Home Loan Experts website. They can provide you with advice and tips on how to make sure that your home loan will be approved.