Do you hold a spouse visa?
This page is for people on a temporary or provisional spouse visa, and are married to an Australian permanent resident or citizen. Even if your husband/wife or de facto partner is not yet a permanent resident or Australian citizen, you may still be eligible for a mortgage of up to 95% LVR (Loan to Value Ratio).
What is your borrowing capacity?
- Many banks and lenders only lend 80% LVR as a result of strict Lenders Mortgage Insurer (LMI) policies.
- There are some banks that will allow you to borrow up to 95% of the purchase price
- In order to qualify for a loan of up to 95% of the purchase price, you must be in a strong position financially and be in a stable relationship.
Lenders and their policies
- You cannot be buying separately: You must purchase the property with an Australian citizen.
- De facto relationships are accepted: You do not have to be married. Banks accept people on a spouse visa that are in a de facto relationship, which includes same sex relationships.
- The relationship must be legitimate and continuing: Most lenders adopt a common sense approach in determining how long you have been in the relationship, and they may decline your application for a home loan if you have not been in a relationship with your partner for a significant period of time.
- Legal structure of ownership: Some lenders will require that couples purchase a property as ‘joint tenants,’ not ‘tenants in common.’ However, not all lenders impose this restriction and may allow alternate legal ownership structures.
You must be purchasing the property with an Australian citizen and be in a relationship with them. If you do not meet any of the above criteria, your mortgage will be limited to 80% LVR.
A good credit history is also important, along with a steady source of income, and stable employment. These all result in reductions in the risk the bank perceives in lending to you.
- We know which banks and financial institutions will accept and approve your mortgage application despite your temporary souse visa. Being married to someone with permanent resident or citizen status in Australia reduces the risk to the lender and may make them more willing to lend to you.
Will I be able to obtain an approval whilst only holding a provisional spouse visa?
- Many lenders have very strict policies regarding individuals on a temporary spouse visa, because they have not been granted permanent entry into Australia, meaning there is a chance that their application for permanent residence will be rejected, resulting in their departure.
- In this circumstance, they will be unable to repay the loan, and so lenders consider them as a high risk.
Acceptable spouse visas
Most lenders will accept the following spousal visa subclasses for those who are married or in a de facto relationship with an Australian permanent resident or citizen:
- Offshore Partner Visa: Temporary and Permanent – (Subclass 309/100).
- Onshore Partner Visa: Temporary and Permanent – (Subclass 820/801).
- Other visa types accepted: Spouses on other types of temporary visa are also acceptable.
Is a deposit required?
- Yes, you will be required to provide a 5% deposit. In some cases, you will be required to provide genuine savings for a deposit. This policy will apply if your partner is on a 457 working visa.
- Some banks will be more flexible allowing you to fund the deposit through a gift or government grant. If you don’t have a deposit you may wish to consider applying for a guarantor loan. With a guarantor loan, you can borrow 100% of the property purchase price.
- In addition to the deposit, you will also need additional funds to cover stamp duty and any legal or conveyancing costs that may be applicable to your purchase.
Purchasing with a fiancé
- Even if you are not yet married, it may still be possible to purchase property with your fiancé (e). It is reliant on their current visa status. If they are on a Prospective Marriage Visa (subclass 300) and are being sponsored by you (as an Australian citizen or permanent resident), it can be possible to purchase property together.
- If you are not yet on a partner visa, it may be best to buy solely in your own name.
Government Grant Benefits
- The Australian Government, from time to time, incentivises or provides grants for the purchase of a new or first property or home.
- If you are purchasing a property with your spouse or partner, whether married or de facto, you may be eligible for government grants.
Is an FIRB approval required?
- If you are buying the home with your Australian citizen spouse as ‘joint tenants’ you will not be required to seek approval from the Foreign Investment Review Board. Unfortunately, there are no other exemptions available for temporary residents. However, in these cases, FIRB approval is usually uncomplicated and fast, and approval is generally granted within two weeks.
How will the banks view my relationship?
- A temporary spouse visa is generally a non-issue for most banks, as long as the specifics of your relationship and its duration indicate that it is likely to continue.
- For instance, a wife from a foreign country and her husband who is an Australian citizen apply for a home loan. Their relationship started a month ago, and the husband is not working, so banks will rely upon the wife to show that they can afford the repayments. In this situation, it is likely that the mortgage application will be declined.
However, if the relationship had been longer or they had children together, the lender would likely see this as a stable relationship, and the application would be subject to normal lending criteria.
With our vast knowledge we have helped people on a temporary spouse visa get great loan packages with low interest rates from some of the major banks across Australia.
Want to discuss your situation? Call a Naritas Adviser today on 1300 558 857 or Chat live. They will assess your ability to borrow up to 95% of the purchase price.