Yes, it is generally possible for an 820 Partner visa holder to buy a house in Australia. While purchasing property as a temporary resident comes with specific considerations, it's a pathway many pursue to establish a stable life in Australia.
Key Requirements for 820 Visa Holders Buying Property
Purchasing a home as an 820 visa holder often involves different criteria compared to Australian citizens or permanent residents. Here are the primary factors:
1. Partner's Involvement on the Loan
A significant factor for 820 visa holders seeking a home loan is the involvement of their Australian citizen or permanent resident partner. In most cases, your Australian or Permanent Resident Partner will need to be a co-borrower on the loan. This arrangement provides lenders with additional security, as the partner's stable residency status and potential income are factored into the loan application.
2. Foreign Investment Review Board (FIRB) Approval
As a temporary resident, you are typically required to seek approval from the Foreign Investment Review Board (FIRB) before purchasing residential property in Australia. This is a crucial step and applies to most temporary visa holders, including those on an 820 visa.
- Application Process: You must submit an application to FIRB and pay a fee.
- Property Type Restrictions: FIRB typically has stricter rules for temporary residents purchasing existing dwellings compared to new dwellings. While you may be allowed to buy an established property, it's often with the condition that you sell it once your temporary visa ceases or if you leave Australia. Purchasing new dwellings, off-the-plan properties, or vacant land to build on is generally more straightforward for temporary residents.
- More Information: For detailed guidelines and application procedures, it is advisable to visit the official FIRB website.
3. Lender Policies and Deposit Requirements
Australian banks and lenders have varying policies for temporary residents. While some lenders are more accommodating, others may have stricter requirements.
- Higher Deposit: Temporary residents may be required to provide a larger deposit compared to Australian citizens or permanent residents, often ranging from 20% to 30% or more of the property's value. This is due to the perceived higher risk associated with temporary residency.
- Income Stability: Lenders will assess your income, employment history, and financial stability, often looking for consistent employment within Australia.
- Loan-to-Value Ratio (LVR): The maximum LVR (loan amount compared to property value) offered to 820 visa holders might be lower.
Steps to Buying a Home as an 820 Visa Holder
Navigating the home buying process can be complex. Here's a simplified guide:
- Assess Your Financial Position: Understand your income, expenses, and savings. Determine how much you can realistically afford to borrow and repay.
- Consult a Mortgage Broker: A mortgage broker specialising in foreign national or temporary resident loans can help you understand your options, compare lenders, and guide you through the application process. They can identify lenders that are more favorable to 820 visa holders.
- Obtain FIRB Approval: Apply for and secure FIRB approval for the specific type of property you intend to buy before making an offer.
- Get Pre-Approval for a Loan: Once you have an idea of your borrowing capacity, obtain pre-approval from a lender. This shows real estate agents you are a serious buyer.
- Find Your Property: Search for properties that meet your needs and fall within your approved FIRB and loan limits.
- Make an Offer and Secure Finance: Once your offer is accepted, proceed with the formal loan application process.
- Conveyancing: Engage a conveyancer or solicitor to handle the legal aspects of the property transfer, including searches, contracts, and settlement.
Important Considerations
| Aspect | Detail for 820 Visa Holder |
|---|---|
| Visa Progression | Consider the implications if your visa status changes (e.g., transition to a Permanent Resident visa like 801, or if a visa is refused). Generally, moving to PR status can make future refinancing or new purchases easier. |
| Tax Implications | Understand potential capital gains tax or stamp duty surcharges that may apply to foreign persons purchasing property, which vary by state and territory. Seek advice from a tax professional. |
| Shared Ownership | If buying with your partner, clearly define ownership splits and legal agreements, especially concerning contributions to the deposit and loan repayments. |
| Property Management (if rented) | If you plan to rent out the property, understand the rules for temporary residents acting as landlords and any associated tax obligations. |
Purchasing a house in Australia on an 820 visa is achievable, especially with an Australian or Permanent Resident partner involved in the loan. Understanding and fulfilling the requirements, particularly FIRB approval and specific lender criteria, are key to a successful purchase. Always seek professional advice from a mortgage broker, conveyancer, and potentially a tax advisor to ensure a smooth process.
