July 29, 2021
Purchasing a home together is always an exciting decision for any couple, no matter what stage of life you’re in. While you may be thinking about starting a new chapter together, you may also be wondering if it’s possible to get a home loan if your partner is on a visa and isn’t an Australian citizen or permanent resident.
First off, the good news is that having a partner on a visa doesn’t make you ineligible for a home loan. However, you should be aware that the application and approval process might be a little more complicated and could take a little longer. Here’s some important factors to consider if you’re thinking about applying for a home loan when your partner is on a visa:
What type of visa is your partner on?
The first thing lenders will want to know when assessing your home loan application is the type of visa your partner is on. The types of visas that are typically preferred by lenders include:
- Temporary and Permanent Offshore Partner Visas (Subclass 309/100)
- Temporary and Permanent Onshore Partner Visas (Subclass 820/801)
- Interdependency Visas (Subclass 310/110 and 826/814)
Other types of temporary visas may also be accepted; however, this will vary from lender to lender.
What type of property do you wish to purchase?
Secondly, the lender will also look at the key characteristics of your property purchase. This includes whether the property is being purchased jointly, with at least one party being an Australian citizen or permanent resident.
The lender will also look at your loan to value ratio (LVR). To work out your LVR, divide the amount of money you want to borrow by how much your property is worth. For example, if you are wanting to borrow $500k to buy a $700k house, then your LVR would be 71%. Some lenders may have restrictions on LVRs for joint borrowers when one borrower is on a visa.
What’s your relationship and employment status?
Thirdly, lenders will also look at the factors surrounding your relationship, such as the length of the relationship, whether you are married or in a de facto relationship, whether you have any children together, and whether your partner has any other ties to Australia. This may feel like personal information, but it’s particularly important to share if your partner is on a visa that relies on your relationship, such as a spousal visa.
Fourthly, the lender will look at you and your partner’s employment status. Generally speaking, a lender may prefer that you, as the citizen or permanent resident, are the main income earner. However, your application is more likely to be approved if your partner also has a good credit history and stable employment income.
Possible approval required
Lastly, in some circumstances, you may also need to seek approval from the Foreign Investment Review Board (FIRB). This requirement will depend on the specifics of your purchase and your partner’s visa.
If you’re looking to purchase a home while your partner is on a visa, consider speaking to our mortgage broker Werribee team who can look at your unique situation. Our team will help build a case for you and ensure you’re taking all the right steps to maximise the potential of getting your application approved by a bank or lender.
Your local Mortgage Choice Werribee & Point Cook broker can assist you throughout the entire home buying process. To discuss the best options available to you, call us today on 03 9749 8800 for an obligation-free chat.
