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[MoreMore Tips] Can I purchase or invest in property if I am a foreign buyer?

Updated: May 7, 2021

In Australia, whether you are a temporary resident, foreign resident, or a short-term visa holder from any country, you can obtain ownership of residential property. The only key issue is that the entire process is highly complicated due to some rules, regulations and additional requirements for foreign buyers.



Temporary residents include below:

  • All temporary visas (stay longer than 12 months)

  • Temporary Skill Shortage Visa (subclass 482)

  • Business Innovation and Investment (permanent/provisional) Visa (subclass 888/subclass 188)

  • Student Visa (subclass 500 and subclass 590)

  • Temporary Graduate Visa (subclass 485)

  • Sponsored skilled migrants from remote areas (subclass 489)


Foreign residents include below:

  • Not resident in Australia

  • Do not hold any Australian visa

  • Hold a temporary visa valid for less than 12 months, such as Visitor (subclass 600)




Australian Temporary Residents/Foreign residents

V.S.

Australian Citizen/Permanent Resident (PR)

  • Foreign buyers can obtain ownership of residential property, enjoying the same ownership period as citizens/PR, and are protected by Australian laws.

  • There is no restriction on purchase times for foreign buyers, and the tax rate is the same, no matter for the first buying or multiple buying.

  • Foreign buyers can apply for mortgages from banks or loan companies, and they can access early repayment. However, compared to citizens/PR (the loan rate is usually 1.89%), the rate of foreign buyers is generally higher (≥3%).

  • Foreign buyers need to apply to the Foreign Investment Review Board (FIRB) to buy a house. For properties under $1 million, the application fee is $5,000; For properties above $1 million, the application fee is $10,000, with an additional $10,000 charged for each additional $1 million in property value.



In most cases, buying a house includes 5 steps below:

Step 1: Selection & house viewing

Select the right property based on your needs and budget.


Step 2: Pre-approval of the loan

Find a loan broker to get a full picture of your finances and budget. And the loan broker can help you compare various loan products to precisely meet your loan needs.


Step 3: Down payment & contract signing

Usually, the bank will require a 20% down payment & stamp duty & attorney fees, and other fees. (For more information about additional costs, you can find [here].)


Step 4: Mortgage loan application

  • Select lenders. Contact your MoreMore Finance broker to get free advice on lender choice [Contact us].

  • Assess assets and liabilities. Your MoreMore Finance broker would assess your credit ability and mortgage health.

  • Personalise a loan plan. Brokers will work with you to personalise loan portfolios and products.

  • Property valuation. Get a valuation report on your targeted property.

  • Submit the loan documents. Required documents contain identity documents (e.g. visa); Certificate of deposit (assets including property, car, etc.); Debt (other loans, e.g. personal loans, mortgages, and other liabilities); Proof of income (salary and other income). Your MoreMore Finance broker will provide you with a list of the required materials.

  • Sign the loan documents

  • Open a savings account


Step 5: Settlement

About 2 to 4 weeks before the settlement day, the lawyer will inform you of the specific date. At that time, you need to remit the balance payment to the government or appointed lawyer trust account. Then on the settlement day, the lawyer will help you register the property title. Then you can move into the new house.



In all, foreign buyers can also purchase or invest in property in Australia and have the same legal protection as Australian citizens. However, the process and regulations are more complicated. Besides, most home buyers often cannot pay the full amount of house payment at one time and need to apply for a mortgage.


Contact us for advice on home loan products at no cost. MoreMore Finance brokers can get a better deal for foreign buyers to help save more and borrow more.





Want to contact us today?

Please call at 1300 613 883 for a free-cost consultation.

Or, simply fill the form [enquire now], we will go back to you in 24-hour.

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