Yes, new migrants can get a mortgage in Australia, but your visa status decides both what you can buy and how much deposit you need. Permanent residents are generally treated like citizens by lenders. Temporary visa holders can usually borrow only up to about 80% of the price, which means a deposit of around 20% plus costs, and there is a major legal restriction to know before you start house-hunting.
That restriction is the foreign-buyer ban. Since 1 April 2025, foreign persons, including temporary residents, generally cannot buy an established (second-hand) dwelling in Australia. The 2026–27 Budget extended the ban from 31 March 2027 to 30 June 2029, according to the Australian Taxation Office. Many older guides still show the earlier end date. Temporary residents can still buy new dwellings and vacant land with Foreign Investment Review Board (FIRB) approval, while permanent residents and New Zealand citizens are not affected.
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This guide explains eligibility, deposit levels, costs, home loan options and the steps to apply. Lender policies change often, so treat figures as typical, not guaranteed, and speak to a licensed broker or lender.
Your Status Decides What You Can Buy
| Your status | Established home? | New home, off-the-plan or vacant land? | Typical maximum loan | Government first-home schemes |
|---|---|---|---|---|
| Permanent resident | Yes | Yes | Up to 95% with lenders mortgage insurance (LMI) | Eligible if you meet the criteria |
| Temporary visa holder (e.g. skilled, graduate visas), buying alone | No (banned to 30 June 2029, subject to limited exceptions) | Yes, with FIRB approval | Usually 80% | Generally not eligible |
| Temporary visa holder buying with a citizen or permanent resident partner | Generally yes as joint tenants, subject to FIRB rules | Yes | Up to 95% with some lenders | Not if either borrower is a temporary resident |
| Student visa holder | No | Limited, with FIRB approval | Very limited; often needs a citizen or PR co-borrower | Not eligible |
Lender policies vary, and some lenders will not lend to particular visa types at all. Confirm your position with a broker before signing any contract.
What Lenders Look At
Visa type and time remaining
For temporary visas, lenders commonly want at least 12 months left on your visa, plus a work-rights visa and evidence of a pathway to stay. Longer visas and skilled occupations strengthen your case. Permanent residents face far fewer visa checks.
Employment and income
Expect to provide payslips, bank statements and an employment contract. Probationary periods, contract work and recent job changes can matter. Self-employed applicants normally need two years of tax documents.
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Credit history
New arrivals have no Australian credit file. Some lenders will assess your application on employment, savings and other evidence, and documented overseas income is treated cautiously. Building a local record early helps, for example with regular phone and utility payments.
Serviceability and borrowing power
Banks must test whether you can afford repayments at the loan rate plus a 3 percentage-point buffer, which APRA has confirmed remains in place. Since 1 February 2026, APRA also limits lenders to writing no more than 20% of new mortgages at a debt-to-income ratio of six times income or more. Most borrowers are unaffected, but heavily borrowed applicants may find fewer lenders will approve them.
Deposit Requirements
- Permanent residents: Lenders may allow deposits from 5% with LMI, or 20% to avoid LMI.
- Temporary residents buying alone: Most lenders cap lending at 80%, so you need at least 20% plus stamp duty, legal costs and the FIRB fee. A few lenders stretch further for strong applicants.
- With a citizen or PR partner: Broker guides report up to 95% may be available, but only if the citizen or PR partner is a borrower on the loan.
For a A$700,000 home, a 20% deposit is A$140,000, leaving a loan of A$560,000. A 5% deposit is A$35,000, though that route is generally open only to permanent residents and citizens and typically adds LMI unless a government scheme applies. Deposits from overseas need to be documented. Lenders and conveyancers will ask for the source of funds.
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Home Loan Options for New Migrants
| Option | Deposit | Who it suits | Watch-outs |
|---|---|---|---|
| Standard bank loan (permanent resident) | 5%–20% | New permanent residents with stable income | LMI applies above 80% loan-to-value |
| Australian Government 5% Deposit Scheme | 5%, no LMI | First home buyers who are citizens or permanent residents, buying to live in | Both borrowers must be citizens or PR; price caps and lender participation apply |
| Temporary resident loan | 20%+ | Skilled visa holders buying a new dwelling | FIRB approval and foreign purchaser surcharges; established homes are off limits |
| Joint loan with citizen or PR partner | From 5% at some lenders | Couples with one eligible partner | May exclude you from first-home schemes |
| Specialist or non-bank lender | Varies | Complex income, short employment history | Rates may be higher |
| Off-the-plan purchase | Usually 10% at contract, finance at settlement | Temporary residents buying new apartments | Your visa and finances at settlement are what the lender assesses |
Under the 5% Deposit Scheme, eligibility is tested at the home loan date, so someone who has applied for permanent residency but not yet received the visa does not qualify. Income caps and annual place limits were removed on 1 October 2025.
Extra Costs for Temporary Residents
FIRB approval. Temporary residents buying property need FIRB approval before contracts are signed. Fees are substantial: at 2025 rates, roughly A$14,000 for lower-priced homes, rising with price. Use the official fee estimator, since fees are indexed.
Foreign purchaser surcharges. States add stamp duty surcharges for foreign persons. Law-firm guides report 9% in New South Wales and 8% in Victoria and Queensland, on top of normal duty. Check your state revenue office for the current rate.
Other costs. Budget for stamp duty, conveyancing, building inspections and, above 80% loan-to-value, LMI. Government first-home grants are state-based and are generally unavailable to temporary residents.
Common Reasons Migrant Applications Stall
Delays usually come from a handful of avoidable issues. Signing a contract before FIRB approval, buying an ineligible established home on a temporary visa, and submitting several loan applications at once are the biggest risks. Others include a visa with too little time left for that lender, deposit funds that cannot be traced, and overseas income that is hard to verify. Building a strong file early, including 3 months of payslips, clear bank statements and consistent address history, makes it easier for a broker to match you to a suitable lender. If one lender declines you, another may still fit your circumstances.
What Will It Cost Each Month?
The Reserve Bank held the cash rate at 4.35% in August 2026, after three increases earlier in the year, and its next decision is on 29 September 2026. Reports put new variable rates near 6%, though offers vary by lender and borrower. As an illustration, a A$560,000 loan over 30 years costs about A$3,360 a month at 6%. Rates may still change, so do not assume they will fall.
Step-by-Step: How to Apply
- Confirm your status and what you can buy. Check the FIRB rules if you are on a temporary visa.
- Check borrowing power. Use a lender calculator, remembering the 3% buffer.
- Save the deposit and document it. Keep statements for overseas transfers.
- Speak to a licensed broker. Ask about visa-specific lender policies.
- Get pre-approval. This estimates what you can borrow, though it is not a guarantee.
- Apply for FIRB approval if required. Do this before exchanging contracts.
- Make an offer and exchange contracts. A conveyancer or solicitor should review the contract.
- Formal loan approval, then settlement. The lender will value the property and verify your documents.
Compliance and Practical Considerations
Do not use nominees. Buying through a citizen “on your behalf” to avoid the ban is high risk and may be an offence. Enforcement has been strengthened.
Ban review. The ban could be modified, so watch official announcements.
Timing. FIRB approval is typically valid for a limited period, so coordinate it with off-the-plan settlement dates.
Tax. Foreign-resident status can change capital gains and land tax outcomes. Take tax advice.
Immigration status. Buying a home does not give you a visa or residency. Your loan may depend on keeping valid status.
Affordability. Interest rates have moved quickly in 2026, so test your budget at higher rates. Your home may be repossessed if you cannot keep up repayments.
Frequently Asked Questions
Can I get a mortgage on a temporary visa?
Often yes, usually up to 80% loan-to-value with a 20% deposit, and generally only for a new dwelling or vacant land with FIRB approval.
Can a temporary resident buy a second-hand house?
Generally not until at least 30 June 2029, unless a limited exception applies. Permanent residents and New Zealand citizens are not affected.
Can new permanent residents get a 5% deposit?
Possibly through a lender with LMI, or through the government scheme if you qualify as a first home buyer and are already a permanent resident when the loan starts.
Do I need an Australian credit history?
Not always, but it helps. Lenders may look at employment and savings when no local file exists.
Can I use overseas savings for the deposit?
Usually yes if you can prove where the money came from, though foreign income may be assessed cautiously.
Does buying a home help my visa or residency application?
No. Property ownership does not create immigration rights.
Conclusion
The smartest first step for a new migrant is to confirm your visa category and what it allows you to buy, then plan the deposit, FIRB approval and lender choice around it. Use a licensed broker, budget for higher interest rates, and verify every rule on official government pages before you commit.
Sources
- ATO, ban on foreign purchases of established dwellings: https://www.ato.gov.au/about-ato/new-legislation/in-detail/international/banning-foreign-purchases-of-established-dwellings
- Foreign Investment Review Board: https://firb.gov.au
- Housing Australia, First Home Guarantee: https://housingaustralia.gov.au/support-buy-home
- Australian Government 5% Deposit Scheme: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme/first-home-buyers
- APRA macroprudential settings: https://www.apra.gov.au/news-and-publications/apra-maintains-current-macroprudential-policy-settings-highly-uncertain
- Reserve Bank of Australia, cash rate: https://www.rba.gov.au
- ASIC MoneySmart, home loans: https://moneysmart.gov.au/home-loans
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