Perm Citizen Housing Loan: Can an Abiding Citizen Get a House Loan When Staying Abroads?

By Kate Ross


Foreign Subjects who hold permanent resident visas are treated by Australian Banks as Australian citizens when they are living in Australia. That is, they can borrow up to 95% LVR (ie, with just a 5% deposit) with the same credit factors that applies to their Australian counterparts.

Permanent Residents are entitled to the First Property Owners Grant, stamp duty concessions and any other state benefits available providing they otherwise qualify.

The tale isn't the same if the permanent resident visa holder is living and working overseas. In this instance, most banks treat these applicants as non resident foreign residents and will prohibit lending altogether or require larger deposits. As a rule candidates who are not Australian subjects and who are living abroad will be restricted to 80% LVR and will need a 20% deposit plus purchase costs.

There are three exceptions to this rule:

1) The permanent resident is buying with an Australian. In this example, the property and house loan can go in both names and an LVR to 90% and presumably 95% is available. But its vital to note that only the income from the Australian Citizen will be considered when determining borrowing capacity. That is, when borrowing over 80% LVR, any revenue from a foreign resident living abroad will be overlooked. if the Australian Citizen is on home obligations and the Foreign Resident is earning the income, a personal loan singapore will not be available as income from the foreign resident will be disregarded. If the situation was reversed which was the foreign citizen doing home obligations and the Australian Citizen was earning the income, this would be satisfactory;

2) One of the candidates is residing in Australia. Ie, if one applicant was living abroad purchasing a property in joint names with a joint applicant who is living in Australia, then an LVR of greater than 80% is practicable providing the Australian resident is holds permanent residency or Australian citizenship.

3) As of April 2011 some banks have relaxed a little on this strict policy understanding it's biased to treat permanent residents living abroad any different than Australian citizens living overseas. Factors is really firm though with the requirement for genuine savings and a positive asset position.

In summing up, home loans for permanent residents living overseas are available but most lenders will constrain to an LVR of 80% so a 20% deposit and purchase costs will be needed.

Permanent residents are exempt from needing to sign up for Foreign Investment Review Board ('FIRB') approval.




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