What Are the Steps to Buying Your First Home on a Visa?

Buying your first home in Australia on a temporary visa involves a different set of steps compared to permanent residents or citizens.

You'll need to coordinate lender approval, Foreign Investment Review Board (FIRB) consent, and enough deposit to meet stricter lending criteria, often while managing currency conversion and proving income from overseas sources. The order you approach these tasks matters, and missing a step can delay settlement or cost you thousands in avoidable fees.

Work Out What You Can Borrow Before You Start Looking

Your borrowing capacity on a temporary visa can be lower than it would be for a citizen or permanent resident with the same income. Most lenders will apply a 20% deposit minimum, and some will only lend up to 70% or 80% of the property value depending on your visa subclass and employment type. If you're earning income offshore or in a foreign currency, lenders will often discount that income by 20% to account for exchange rate risk.

Consider a buyer on a 482 visa earning $95,000 AUD equivalent working for an Australian employer. They might borrow around $450,000 to $500,000 depending on other commitments, but would need at least $112,500 saved for a 20% deposit plus another $15,000 to $20,000 for stamp duty, legal fees, and FIRB application costs. If that same buyer was earning their income overseas and converting it to AUD, the borrowing figure could drop by $80,000 to $100,000 even with identical take-home pay. You can get a realistic figure by speaking with a broker who understands how lenders assess temporary visa holders rather than relying on generic online calculators.

Apply for FIRB Approval Early

Foreign persons, including most temporary visa holders, must apply to the Foreign Investment Review Board before exchanging contracts on residential property. The application fee depends on the purchase price and starts at $15,100 for properties under $1 million. Processing usually takes around 30 days, though it can be faster if your application is straightforward.

You can apply for FIRB approval before you find a property by requesting a certificate that covers any vacant land or brand-new property up to a certain value, or you can apply once you've identified a specific property. Getting this sorted early means you won't be scrambling during your cooling-off period or holding up settlement because the certificate hasn't arrived.

Get Your Deposit and Savings Evidence Ready

Lenders want to see genuine savings, meaning funds that have been in your account for at least three months. If you've recently transferred money from an overseas account, you'll need to provide statements from that account showing the funds built up over time. A one-off deposit from a family member can sometimes be accepted as a gift, but you'll need a signed declaration and evidence the donor had those funds available.

In our experience, temporary visa holders often underestimate how much documentation is required. You'll typically need three to six months of savings account statements, evidence of the source for any large deposits, and a letter explaining any recent transfers. If part of your deposit comes from the sale of an overseas property, expect to provide the settlement statement and evidence the proceeds landed in your account.

Choose the Right Loan Structure for Your Situation

Most first home buyers on temporary visas choose between a variable rate with an offset account or a split loan with part fixed and part variable. An offset account lets you park your savings against the loan balance and reduce the interest charged each month without losing access to the funds. If you're planning to move back overseas or transition to a different visa, this flexibility can be valuable.

Fixed rates lock in your repayments for one to five years, which helps with budgeting but comes with break costs if you need to sell or refinance early. A split loan gives you some certainty on part of the debt while keeping the rest flexible. Your choice depends on how long you plan to stay in Australia, whether you might rent the property out if you leave, and how much your income or visa status might change over the next few years. A broker familiar with temporary visa lending can model different scenarios based on your actual circumstances rather than generic assumptions.

Understand First Home Buyer Concessions You Might Qualify For

Some temporary visa holders are eligible for state-based stamp duty concessions or grants, but the rules vary by state and visa type. In most states, you need to be a permanent resident or citizen to access the First Home Owner Grant or stamp duty exemptions. However, some states allow certain temporary visa subclasses to apply if they meet residency requirements.

The federal First Home Guarantee, which lets eligible buyers purchase with a 5% deposit and no Lenders Mortgage Insurance, is generally restricted to Australian citizens and permanent residents. If you're on a pathway to permanent residency, it might be worth waiting until your visa status changes to access these programs. Check the current rules in the state where you're buying, as eligibility has changed several times over the past few years.

Organise Pre-Approval Before Making an Offer

Pre-approval gives you a conditional commitment from a lender, usually valid for three to six months, and shows sellers you're a serious buyer. For temporary visa holders, pre-approval can take longer than it does for citizens because lenders need to verify visa conditions, assess foreign income, and sometimes escalate the application to a specialist credit team.

You'll need to provide your visa grant notice, passport, evidence of income (payslips if employed in Australia, contracts and bank statements if earning offshore), savings statements, and details of any other debts or commitments. Once approved, you'll know exactly how much you can borrow and what deposit you need, which keeps you from wasting time looking at properties outside your budget.

Line Up Conveyancing and Property Inspections

Once you've found a property and made an offer, you'll need a conveyancer or solicitor to handle the legal side of the purchase. They'll review the contract, arrange searches, liaise with the seller's legal representative, and manage settlement. Building and pest inspections are also part of this stage, and the cost is usually between $400 and $800 depending on the property size and location.

Your conveyancer will also coordinate with your lender to make sure the mortgage is ready to settle on the agreed date. If you're buying as a temporary visa holder, let your conveyancer know early so they can factor in any additional requirements, such as ensuring your FIRB approval covers the specific property and is provided to the relevant state authority before settlement.

Prepare for Settlement Costs Beyond the Deposit

Settlement costs include stamp duty, foreign duty, legal fees, loan establishment fees, FIRB application fees, and sometimes lender valuation fees. Stamp duty and foreign duty are the largest of these and vary by state. Legal fees are typically $1,500 to $2,500, and loan establishment fees can be another $600.

If you've budgeted only for the deposit, these additional costs can catch you short. If funds are tight, some lenders allow you to capitalise the LMI into the loan, but this increases your borrowing amount and ongoing repayments.

Keep Your Visa Status and Employment Stable Through Settlement

Lenders will often re-verify your employment and visa status just before settlement, particularly if there's been a gap of more than a few weeks since your pre-approval was issued. Changing jobs, letting your visa lapse, or reducing your hours can all trigger a reassessment and potentially delay or derail your loan.

If your visa is due to expire within six months of settlement, talk to your broker about whether you should renew it first or provide evidence of an application in progress. Some lenders are comfortable proceeding if you have a valid visa at settlement, while others want to see at least 12 months remaining. The same applies to employment - if you're planning to switch employers or move to contract work, it's usually worth waiting until after settlement to make that change.

Call one of our team or book an appointment at a time that works for you. We'll walk through your visa type, deposit situation, and income sources to build a realistic timeline and connect you with lenders who actually lend to temporary visa holders rather than ones who'll waste your time.