Home loans for temporary residents and non-residents in 2026

Buying a home in Australia while on a temporary visa is possible in 2026, but the path has distinct steps. Lenders now assess visa type, remaining visa length, employment stability, and foreign investment rules. This guide covers the latest deposit thresholds, lender appetite for 457/482/491 holders, FIRB fees, and the expanded First Home Buyer Guarantee from July 2026.

Understanding your visa type and borrowing eligibility

Australian lenders group non‑permanent residents into two broad categories: temporary residents (holding a visa that allows work, such as subclass 457, 482, 491, 494, or 485) and non‑residents who live overseas but wish to buy Australian property. Each category faces different borrowing constraints.

Temporary residents generally need a visa with at least 12–24 months remaining before expiry. Some lenders require 36 months if you are in a specialised occupation. For visa subclasses commonly accepted:

· Subclass 457 (now largely replaced by 482 but still held by some) – lenders typically want three months’ payslips and proof the employer sponsored the visa. · Subclass 482 (TSS) – the most widely accepted temporary skilled visa. Minimum visa term left must be 12 months from settlement date; many lenders prefer 24 months. · Subclass 491 (Skilled Work Regional) – treated similarly to 482, though some banks require evidence of regional employment.

Non‑residents living abroad face stricter terms. Lenders often cap LVR at 70–80% and apply higher interest rate margins. Borrowers must demonstrate that rental income can cover loan repayments, as domestic salary is absent.

Deposit requirements and LVR limits for temporary residents

In 2026, temporary residents are generally restricted to a maximum LVR of 80% – meaning a deposit of at least 20% plus costs. Some niche lenders accept 85–90% LVR if the borrower holds a strong employment history and a high salary, but those cases are rare.

A typical deposit breakdown for a $750,000 property (Sydney unit) looks like:

· 20% deposit: $150,000 · Stamp duty (approx 4–5% for non‑first‑home buyers in NSW): $30,000–$37,500 · Lender’s mortgage insurance (LMI): $8,000–$12,000 if LVR exceeds 80% (rarely applies to temp residents because of the 80% cap) · Solicitor, valuation, and inspection fees: $3,000–$5,000

Total cash needed is roughly $185,000–$195,000 for a $750,000 purchase.

For non‑residents, LVR is often capped at 70%, pushing the deposit to 30% plus costs. A $900,000 house in Melbourne would require $270,000 deposit, $36,000 stamp duty, and $4,000 fees – around $310,000 cash.

FIRB approval: costs and timeline in 2026

All temporary residents and non‑residents (except New Zealand citizens with special visa arrangements) must obtain approval from the Foreign Investment Review Board (FIRB) before buying residential real estate. There are two main application types:

· New dwellings – approval is generally easier. Application fee (2026) is $13,000 for properties valued up to $1 million, then tiered up to $1.5 million ($26,000) and above. · Established dwellings – only permitted for temporary residents who plan to live in the property and sell it when they leave Australia. Application fee same as new dwellings.

FIRB processing time in 2026 averages 30–45 days. Lenders will not issue formal approval without a FIRB clearance letter. You must apply before signing any contract (or make the contract subject to FIRB approval).

Key rule: If you buy an established dwelling as a temporary resident, you must sell it within 30 days of your visa expiry or when you leave Australia permanently.

Lenders that accept 457, 482, and 491 visa holders in 2026

Most major Australian banks accept temporary residents, but policies change frequently. As of mid‑2026, these lenders are active:

· CBA – Accepts 482 and 491 visas with 24 months remaining. LVR up to 80%. Requires 12 months employment in Australia (continuous with same employer). · Westpac – Accepts 457/482 with 12 months remaining; 491 requires 24 months. Interest rate loading of +0.50% to +0.75% above standard variable rates. · NAB – Accepts 482 and 491 with 18 months remaining. LVR up to 80%. No LMI waiver for deposits under 20%. · ANZ – Accepts 482 with 24 months remaining. 491 accepted on a case‑by‑case basis, often requiring contractor income evidence. · St.George / Bank of Melbourne / BankSA – More flexible with 482 visa holders, offering up to 85% LVR if the borrower has a 20% deposit and strong employment history. · ING – Accepts temporary residents with 24 months remaining; LVR 80% maximum. Higher rates than standard.

Non‑resident lending (for those living overseas) is dominated by specialised lenders like Pepper Money, Liberty, and La Trobe Financial. These lenders charge higher rates – typically 7–9% variable – and require 35–40% deposits.

How the First Home Buyer Guarantee expands for temporary residents from July 2026

The First Home Buyer Guarantee (FHBG) – run by Housing Australia – previously required Australian citizenship or permanent residency. From 1 July 2026, the scheme is extended to eligible temporary residents who hold a visa that provides a pathway to permanent residence, such as subclass 482 or 491.

Key rule changes: · No income cap – the previous $125,000 (single) / $200,000 (couple) limit is removed entirely. · Minimum deposit reduced to 5% of the property price (no LMI required). · Price caps increased to: Sydney $1.5 million, Brisbane $1 million, Melbourne $950,000, Perth $850,000, Adelaide $750,000, ACT $900,000.

A temporary resident buying a $950,000 house in Melbourne under the FHBG would need a deposit of just $47,500 plus stamp duty (which may be reduced under state first‑home buyer concessions). This dramatically lowers the cash barrier.

Caveat: Only 35,000 places are available per financial year for the expanded scheme. Applications opened on 1 July 2026 and are expected to fill by November.

Interest rates and serviceability in 2026

The RBA cash rate remains at 4.35% in July 2026. The lowest advertised variable rate for an owner‑occupier loan (P&I, 80% LVR) is around 5.69%. For temporary residents, lenders typically add a risk margin of 0.25–0.75%, pushing the effective rate to 5.95–6.50%.

Serviceability is calculated using APRA’s 3% buffer over the loan’s actual rate. For a 6.00% rate, the assessment rate becomes 9.00%. Combined with the 6x DTI cap introduced by APRA in February 2026, a borrower earning $120,000 can only borrow up to $720,000 (6 x $120,000) even if the 9% buffer would allow more.

Example serviceability for a temporary resident earning $130,000 with a 20% deposit on an $800,000 property:

· Loan amount: $640,000 · Monthly repayment at 6.25% (30‑year P&I): $3,940 · Assessment rate 9.25%: monthly $5,260 · Maximum DTI (6x income): $780,000 – but $640,000 is below that, so limit is fine. · Net surplus after tax and other debts: lenders expect at least $500–$800 per month above minimum.

Non‑residents face even higher assessment rates – often 10–12% – and DTI caps of 5x due to limited income sources.

FAQ

Q1: What minimum deposit does a 482 visa holder need for a $900,000 home in Brisbane in 2026?
A: Without the FHBG, you need at least 20% ($180,000) plus stamp duty ($35,000) and fees ($3,000) – total $218,000. If you qualify for the FHBG (from July 2026), the deposit drops to 5% ($45,000) and no LMI.

Q2: How much does FIRB approval cost for a $1.2 million established home in Sydney?
A: For an established dwelling purchased by a temporary resident, the application fee is tiered: $13,000 for values up to $1 million, plus an additional $26,000 for the portion between $1M and $1.2M – total $39,000. New dwellings cost the same.

Q3: Can I use rental income from my current Australian property to qualify for a second loan as a 491 visa holder?
A: Yes, some lenders, such as NAB and Westpac, accept 80% of verified rental income. But the loan will be assessed at a higher rate (around 7%) and your DTI must stay below 6x. You also need 24 months visa validity.

Q4: What is the DTI cap and how does it affect me in 2026?
A: APRA’s DTI cap, effective February 2026, limits total lending to 6 times your gross annual income. A temporary resident earning $150,000 can borrow up to $900,000 from any lender, regardless of property value. This is binding even if your serviceability calculation shows a higher capacity.

Q5: I am a non‑resident living in Hong Kong. Can I get a loan to buy an investment property in Perth?
A: Yes, but only through specialist lenders. Expect a minimum 35% deposit, interest rate around 7.5–8.5%, a 3% buffer (assessment rate over 11%), and a DTI cap of 5x. FIRB approval is also required: $13,000 fee for properties under $1M.

Sources

· Reserve Bank of Australia – Cash rate target and monetary policy statements, July 2026. https://www.rba.gov.au · Australian Prudential Regulation Authority (APRA) – Macroprudential measures: DTI cap of 6x effective February 2026. https://www.apra.gov.au · Housing Australia – First Home Buyer Guarantee expanded eligibility and price caps, 2026–27. https://www.housingaustralia.gov.au · Foreign Investment Review Board (FIRB) – Fee schedule and application timelines, 2026. https://firb.gov.au · NSW Revenue – Stamp duty rates and first‑home buyer concessions, 2026. https://www.revenue.nsw.gov.au

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Related guides

· Investment loans for temporary residents in 2026 – how to structure negative gearing and manage tax. · Low‑doc loans for self‑employed temporary residents – alternative income verification options. · Construction loans explained for visa holders – building new homes on temporary visas.