Home Loans For Non Residents Of Australia

This is a reply to an email question from Yi in Subiaco, Can my parents who are non residents and don’t live in Australia, buy and finance a property in Australia?
We will look at the finance options first. Generally speaking there are banks and lenders that will lend to non residents. The banks or lender may lend up to 80% of the property value, but this is dependent on the various lenders policies, and the country of origin where the applicants are applying for a non resident mortgage are from.
The mortgage interest rates are generally the same as traditional mortgages. The bank will ask for income verification, translated to English, and may ask for the income verification translation to be certified in Australia. It is important to seek advice from a qualified mortgage broker before any decision is made, then you can make an informed decision on what is best for your current situation.
As far as a non resident purchasing a property, they will need the approval of the Foreign Investment Review Board (FIRB) before they can proceed. The rules and regulations have changed recently, but it is still possible for a foreign investor to buy a residential property in Australia. Generally speaking, new properties, construction or development of residential real estate is an acceptable purpose for a non resident to purchase property in Australia. The idea for this, is to increase the supply of property available, to increase Australia’s housing stock. An established property may be acceptable to purchase by a non resident, if it is for the purpose of redevelopment, the existing property is demolished, and continuous substantial construction commences within 24 months of purchase.
The rules and regulations for non resident residential property ownership may change at anytime. There is some excellent and up to date information at the Foreign Investment Review Boards (FIRB) Website, http://www.firb.gov.au. 
If you have any questions or comments about non resident home loans, please leave your comment below, or contact me anytime, to discuss your needs.