Housing is an important investment everyone desires. However, certain rules in different countries or provinces can influence who gets a mortgage. In Australia, foreign nationals, expatriates, temporary residents, and all other legal non-residents to the country can capitalize on a specific mortgage policies across the country.
What Are Non-Residents?
Non residents are legal residents of Australia, but are not citizens of the country. Under Australian national housing policy fall under several categories. Non residents under these housing policies include people with working visas, temporary visas, a spouse visa, a student visa, and New Zealand citizens. Australians living and working overseas are also eligible for mortgages from Australian banks under these type of non resident mortgages. Banks in Australia use the non resident status of a person to provide for them an appropriate home mortgage or commercial investment. There are government regulations concerning how a bank can provide a mortgage to non residents, however.
FIRB Approval
Meeting any of those categories of residency is the first step toward a non resident mortgage. After that, non-residents must be approved by the Foreign Investment Review Board, or the FIRB. FIRB approval is specifically for non residents with a temporary visa, a working visa, a spouse visa, or a student visa. Australians living overseas, New Zealanders, or individuals with a temporary visa who are married to an Australian citizen do not need to meet FIRB approval and can conduct themselves under the non resident banking rules immediately. FIRB approval is a stage of pre-approval given to non residents. Most FIRB approvals go through and the FIRB acts more as a protection against speculation in the Australian housing market, especially for commercial mortgages.Once a non resident has their FIRB approval completed, they can shop around Australian banks for the mortgage that is right for them.
Quality of Non Resident Mortgage
Many people might fear that the quality of the mortgages for non residents may not be high. After all, many of these individuals could be recent immigrants on their way to becoming citizens or individuals that live oversea and cannot come to Australia to see the property. However, Australian banks are willing to provide up to $100,000 Australian dollars for the maximum mortgage size. Mortgages are also packaged in 30-year max, conventional mortgages with home construction loans available. Under law, non resident mortgages can be up to 80 percent of the property's value. To cater to overseas Australians or New Zealanders, there is internet banking, though international calls might still be charged.
The Dream of Australian Homeownership
Its the benefit of a healthy economy for people to own homes. Australia has remarkable policies and laws that protect and promote homeownership for its non residents. This can help everyone from a student with a visa who wants to own an Australian home and being working in the country to a foreign investor who wants to invest in commercial property. Non residents should see the benefit in investing in Australia.
