International Students: Buying Australian Homes

Although it is challenging for international students to buy property in Australia, it is not impossible. International students on a temporary visa can get approved for a mortgage, but only on a case-by-case basis. Typically, you need to be a permanent resident or citizen to buy property in Australia, and many home loans require you to be Australian. However, there are options for international students, such as getting help from parents or partners who can act as foreign investors and apply for non-resident home loans. Foreign buyers can purchase property in Australia but need approval from the Foreign Investment Review Board (FIRB). The FIRB has a flexible policy for those buying an owner-occupied dwelling, and approval is usually granted within two weeks. International students may also boost their chances of home loan approval by having a higher deposit, stable employment, and a good savings pattern.

International students can buy new properties or vacant land

International students in Australia can generally buy new properties or vacant land. However, they are restricted from buying existing residential properties due to government regulations. This means that international students can buy newly built residential properties directly from developers or through the resale market if they have not been previously occupied.

When it comes to vacant land, students can purchase it with approval to build a new dwelling, provided they meet all local council and planning requirements. This gives students the opportunity to build their dream home from scratch. It is important to note that international students will need to navigate the market, secure financing, obtain necessary approvals, and manage associated costs.

One of the challenges international students face is financing. Lenders often view students as high-risk borrowers and charge higher interest rates for loans. To increase the odds of approval, international students can have relatives act as guarantors or cover a portion of the debt. Additionally, students will need to provide proof of income and the ability to make continuous deposits for more than three months.

International students must also seek approval from the Foreign Investment Review Board (FIRB). This approval is necessary for non-residents and typically takes two weeks to complete. The FIRB is generally concerned with the type of property being purchased and has a more flexible policy for those buying owner-occupied dwellings.

International students can't buy existing residential properties

International students in Australia are generally restricted from buying existing residential properties due to government regulations. These restrictions are in place to prioritise housing availability and affordability for Australian residents. However, international students can purchase a house in Australia if they meet the necessary requirements and obtain the required approvals.

One of the primary challenges for international students seeking to buy property in Australia is securing financing. Lenders typically view students as high-risk borrowers, and as a result, they may be subject to higher interest rates and stricter lending criteria. To mitigate this risk, international students may consider seeking a guarantor, such as a relative, to co-sign the loan or cover a portion of the debt. Additionally, proof of income and the ability to make continuous deposits for more than three months are generally required when applying for a loan as an international student.

Another critical aspect for international students to consider is obtaining approval from the Foreign Investment Review Board (FIRB). This approval is necessary for non-residents and is granted based on the type of property being purchased. FIRB approval is typically required unless the international student is buying the property with a permanent resident or Australian citizen. The review process usually takes around two weeks to complete.

While international students may face challenges in the purchasing process due to visa restrictions and limited financing options, it is not impossible for them to buy a house in Australia. With meticulous planning, professional guidance, and compliance with government regulations, international students can realise their dream of owning a home in the country.

International students need FIRB approval

International students in Australia can purchase property, but there are some restrictions in place. International students are generally restricted from buying existing residential properties and are typically prohibited from buying established homes or apartments that have been previously lived in. These restrictions are in place to prioritise housing availability and affordability for Australian residents.

However, international students can buy newly built residential properties directly from developers or through the resale market if they have not been previously occupied. They can also purchase vacant land with approval to build a new dwelling, provided they meet all local council and planning requirements.

If you are an international student looking to buy a house in Australia, you will need to apply for approval from the Foreign Investment Review Board (FIRB). The FIRB is responsible for reviewing foreign investment proposals to ensure they do not compromise Australia's national interests or security. The process involves seeking approval from the Australian Taxation Office, which grants ''no objection notifications'' to successful applicants. This approval must be obtained before entering any contract to buy residential property, and there are penalties for those who fail to do so.

It is important to note that the conditions for obtaining approval to buy a specific property may vary on a case-by-case basis, and each type of property may have special conditions. For example, from 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings in Australia, with limited exceptions. This includes temporary residents purchasing an established dwelling for use as their principal place of residence. However, temporary residents can still apply for approval to purchase vacant land or new dwellings during this period.

In addition to obtaining FIRB approval, international students must also consider the financial aspects of buying a house in Australia. They will need to provide proof of income and demonstrate the ability to make continuous deposits for more than three months. The mortgage ratio for international students is limited, which may reduce the mortgage amount they are eligible for. It is recommended that international students seek financing advice from a loan manager and carefully plan their budget before embarking on the journey of homeownership in Australia.

International students can get a home loan

International students in Australia can get a home loan, but it may be difficult due to their visa status and the associated restrictions. Most banks have strict lending criteria for student visa mortgages, and even if approved, the interest rate may be higher. Additionally, scholarship funds are typically not considered part of the borrower's income. However, if the borrower is employed, their income will be considered, and having an Australian citizen or permanent resident as a co-signer or guarantor can significantly improve the chances of loan approval.

To boost their chances of approval, international students should demonstrate their ability to repay the loan with proof of income and a good credit history. They may also need to provide extensive documentation and meet higher deposit requirements, typically at least 20% plus 5% for extra costs. It is advisable to consult with mortgage brokers and financial advisors to navigate the process and improve approval chances.

International students can also consider personal loans as an alternative to traditional home loans, although these typically have higher interest rates and shorter repayment terms. Another option is to have their parents act as guarantors or co-signers on the loan or buy an investment property in their name and rent it out to their children.

It is important for international students to be realistic about their budget and not buy outside their means. They should also be aware of the types of properties they can purchase, as they are generally restricted from buying existing residential properties due to government regulations. Instead, they can typically purchase new properties or vacant land with the intent to build, subject to certain conditions and approvals.

International students can buy property without being Australian citizens

International students can purchase property in Australia without being Australian citizens. However, they may face challenges due to visa restrictions and eligibility criteria. A valid visa is required, and students must meet specific requirements and obtain necessary approvals.

International students can buy newly built residential properties directly from developers or through the resale market if the dwellings have never been occupied. They can also purchase vacant land with approval to build a new dwelling, adhering to local council and planning requirements. These options ensure that housing availability and affordability for Australian residents are prioritised.

When buying property, international students may require assistance from their parents or relatives, who can act as guarantors or cover a portion of the debt. Additionally, students need to demonstrate their ability to repay any loans and may need to provide proof of income. The mortgage repayment period is generally 30 years, and international students might be eligible for discounted student visa mortgages or standard interest rates if they have good credit.

It is important to note that international students are generally restricted from buying existing residential properties. They must also accept the purchase review of the Foreign Investment Review Board (FIRB), which assesses the type of property being purchased and typically grants approval within two weeks. With careful planning and guidance, international students can navigate these processes and secure their dream of owning property in Australia.

Frequently asked questions