Non- Resident lending refers to loans in Australlian Dollars made to people who do not live in Australia to assist with the purchase of investment property in Australia.

Non-Residents can be divided into two categories

1. Australian Citizens and Permanent Residents temporarily living overseas
2. Non Citizens

Over the past 3 years many banks have tightened and changed their criteria for this type of lending but there are lenders who are interested in this type of business.

The main difference between category 1 & category 2 is the amount which can be borrowed. Category 1 borrowers can borrow up to 95% of the purchase price of the property in some cases. Category 2 borrowers are restricted to a maximum of 80% of the value of the property being purchased. In many cases this is reduced to 70%.

Non Citizens (including temporary residents) are required to obtain approval from the Foreign Investment Review Board (FIRB)  when purchasing property in Australia.

Many non residents purchase property "off the plan". It is important to remember that finance approval for "off the plan" purchases is indicative only and formal finance approval will not be available until the development is complete.

Susanne Massingham is our non-resident lending specialist and we recommend you contact her before you purchase to discuss criteria for finance and then about 3 months prior to completion of the project to finalise the paperwork for the loan.

If you are a non resident and looking for investment property opportunities we can recommend you to John Faulkner from HomePort Property who has assisted many of our past clients with investment properties.

 

For more information contact us today.