Major banks have restricted lending to foreigners, however the overall demand for home loans has not decreased. Other lenders have progressed to fill this gap in the market, and have commence lending to foreigners. However, with lending hurdles higher overall, foreign investors seeking to obtain finance around Australia are often left disappointed and frustrated.
Even though the majors are not writing new loans for non-residents, many are still considering loans for temporary visa holders. ANZ no longer lends to foreign nationals neither, and applicants has to be permanent residents of Australia. ANZ also accepts citizens of NZ and 457 visa holders. Applicants can only account for 30% of their foreign income, with specific paperwork necessary to verify them. Westpac isn't writing new loans for non-residents, and CBA does not provide loans to non-residents but offers LVR of 70% for selected temporary visa holders who make a living in Australia. At NAB, LVR of 60% applies for temporary visa holders living in Australia. An maximum LVR of 70% applies for citizens of NZ in addition to permanent residents living overseas. All foreign income must be discounted by 40% when assessing serviceability.Some second-tier lenders continue to be lending to foreigners. Applicants must meet strict credit criteria. With overall failing LVR, it is more difficult to obtain a loan if youre a foreigner.
The major banks’ tighter lending restrictions have shifted demand to other alternative lenders who in parallel also limited in their lending by the inherent risks. Contact us to speak to our referral partners today to navigate and guide you through this minefield.