457 Visa and Home Loans
Acquiring a home loan with temporary resident 457 visas is a complicated process. Application has to be submitted to the Foreign Investment Review Board for approval before any contracts can take place. The approval process is a fairly easy process and approval is certain if purchases are to be made on vacant buildings and land. Approval is not that easy when established home is to be purchased.
Criteria for the 457 visa for home loans
There are many criteria one needs to meet in order to get a home loan with a 457 visa; this however depends on the bank and lenders.
- Applicant’s income
- Applicant’s remaining time frame (length of time that remains on the visa)
- Applicant bank statement
- History of stay (assessment of criminal and other offense records) etc
- Maximum percentage of property value that could be borrowed
- Location and type of property
Most residents (temporary) have being misled to thinking that 457 visa home loan is only available and limited to 80% loan value ratio. This means that it’s obtainable for up to 80% of the value of the property. This is not true
The maximum percentage depends on factor like
- Lender: there are several lenders out there with different borrowing percentages. Some can borrow up to 80% of the property while some can do it for 90%, 95% with mortgage insurances
However the good news is a new home could be purchased whilst on a 457 visa if one has been in a job for one year or two years with reputable saved deposits. A home loan of 90% LVR can be acquired. They can buy new buildings, vacant land to build new buildings and as stated earlier permission must be acquired from the Foreign Investment Review Board.
The 457 visa is the most popular used program for Australians or workers from outside Australia who have been sponsored and selected by an employer to work in Australia. It was initiated on November 24 2012 and applications are processed by the Department of Immigration and Border Protection (DIBP).
Individuals in possession of this visa may be employed for a time frame of four years and they have no limit in many times they can travel in and out of Australia. Employers must be authorized by the Department of Immigration and Border Protection as approved guarantor. To apply for a 457 visa, your occupation must be listed in the Consolidated Sponsored Occupations List.
You may visit http://visa2australia.com.au/ for further information about obtaining a 457 visa.
Before an employer could request for overseas workers to come to Australia under a 457 visa, they must meet specific conditions including:
applying to be a sponsor to recruit/hire overseas workers
designating the job positions they want filled, and the employees they want to fill those positions
recruiting the overseas workers to fill the nominated positions
acting as a guarantor for the employees requesting for a visa
An incoming employee to Australia under a 457 work visa must:
accept the provisional offer of employment from the employer
apply for a 457 visa
meets all requirements on their 457 visa