Australian TSS 482 Visa Holders Borrowing To Buy Their New Home
Lending to TSS 482 Visa holders
Firstly, the good news is that there are lenders who do support new to Australian TSS 482 visa holders in borrowing to buy their new home.
This is assuming all owners/borrowers are on the temporary visa arrangement and the primary TSS 482 visa holder to be a PAYG employee with regular salary payments going into their local bank accounts.
(Note: If one party is an Australian Citizen or on a Permanent Resident Visa, there are no restrictions to purchase or borrow.)
There are restrictions on the lending amount available for the Temporary Visa holder which is reduced to a lower loan amount to the value of the property ranging between 80% to 70%.
There is no lender loading on interest rates with an estimate variable interest rate, repaying principal and interest being 3.25% ish. (note: rates are different along with eligibility at different lenders)
That being said, as the main goal for many TSS 482 Visa holders is to become Permanent Residents or even Citizens and wish to own their own home now, you may have the savings and funds available to accommodate the higher deposit requirements and wish to buy now, but before you jump in, let’s look at the extra costs associated with a purchase whilst on a TSS 482 Visa.
The Bank Costs for application and settlement for an own home loan typically won’t exceed $1000 but can vary from lender to lender.
The TSS 482 visa holder may only purchase their own home. (Borrowing and eligibility to purchase an investment property is not available to Foreign Purchasers.)
There are no grants or discounts for TSS 482 Visa holders as first home buyers who have a Foreign Citizenship status. (Eligibility may be available upon granting a Permanent Residence status or Citizenship.)
It is recommended to engage a Solicitor to support the property-purchase process.
The solicitors’ job is primarily to review the purchase contract, complete the checks and balances on the exchange of the contract, review the risks associated with the purchase and lastly support the settlement of the property purchase.
As the process for Foreign purchasers is a bit more complicated, it is especially important to engage a solicitor who has experience in dealing with Foreign Buyer applications.
The typical fee for a Solicitor ranges from $1500 to $3500 depending on the location, price and type of property being purchased.
Stamp Duty and Transfer Costs
The main costs involved with a property purchase will be the State-Based Stamp Duty and Transfer Costs of the purchase.
These stamp duty costs are state-based and range from 3% to 6% of the purchase price.
– $1,000,000 purchase may cost up to $60,000 in stamp and transfer duty.
Foreign Investment Review Board
The purchasers will need to apply to the Foreign Investment Review Board for approval to buy their home.
A fee estimate 0-$1 million own home purchase fee is $5,700, $1m – $2 m is $11,500. Refer to the fee estimate on the web site link.
This again is an application to the FIRB to review and approve a property purchase. Your local solicitor can assist with an application and guidance here.
Foreign Buyer Stamp Duty Surcharge
The Foreign Buyer Stamp Duty surcharge is again a state-based fee NSW & VIC 8%, QLD, SA & WA 7%, Tas 3% and NT & ACT nil calculate on the purchase value.
This is an additional charge to the Stamp Duty fee above.
Please note Permanent Residents do not pay this fee.
A little example below for a purchased home for $1,000,000 in NSW would require approximately $325,000 to $425,000 to buy:-
As you can see there is a lot of information and requirements for TSS 482 Visa holders to understand, so if you would like advice on your Australian Visa holders, speak to the professionals at Four Corners on +61 2 8904 0100 or firstname.lastname@example.org.