Home Loans for Immigrants: A Practical Guide to Getting Approved

Immigrating to a new country comes with its own set of challenges, and finding the right home loan is often one of the biggest. If you’re a recent migrant or temporary resident in Australia, the good news is that there are viable home loan options available for immigrants. 

However, understanding how Australian lenders assess your application is key to securing approval.

This guide walks you through how the system works, what to expect based on your visa status, and how mortgage brokers can help you navigate it all. Whether you're on a temporary visa, permanent resident visa, or applying as a New Zealand citizen, this resource simplifies the steps involved in securing a mortgage in Australia.

Understanding the Australian Mortgage Landscape

The Australian home loan system is different from those in many other countries. Even immigrants from the UK or the US are often surprised by how strict and conservative the process can be.

Lenders here take a more cautious approach and typically require more documentation than their overseas counterparts. Loan applications can take longer to process, especially if you're providing international financial records. For immigrants, working with an experienced mortgage broker is crucial to avoid delays and confusion.

Home Loan Options Available to Immigrants

Australia does not exclude immigrants from obtaining home loans. In fact, many banks and lenders have specific mortgage products designed for non-residents and temporary visa holders.

These home loans for immigrants may allow you to borrow up to 80% of the property's value. In some exceptional cases, lenders will approve up to 95% with Lenders Mortgage Insurance (LMI). However, this depends on your overall financial position and visa type.

Common loan types available include:

• Standard variable and fixed-rate loans
  
  
• Low-doc loans for self-employed migrants
  
  
• Non-resident loans
  
  
• Loans with LMI waivers for select professions

Key Criteria Lenders Will Assess Immigrants

Lenders in Brisbane and across Australia follow strict guidelines when assessing home loan applications from immigrants. The criteria are multifaceted, and approval hinges on several important factors:

1. Visa Type and Residency Status

The type of visa you hold significantly affects your borrowing power. Here's a breakdown:



• Permanent residents are typically treated the same as citizens by most lenders.
  
  
• Temporary visa holders (such as those on 482, 491, 494, or student visas) may face stricter requirements.
  
  
• New Zealand citizens with a Special Category Visa (SCV) are often eligible for home loans with favourable terms.
  
  
• Spouse or partner visas may be acceptable, especially if your partner is an Australian citizen or permanent resident.

Your ability to stay in the country and maintain consistent employment is a key risk factor for banks.

2. Income and Employment Stability

Australian lenders will assess your income against the proposed loan repayments, other liabilities, and ongoing living expenses. Stability is vital. If you've only just arrived, having a solid employment contract or working in a high-demand profession can strengthen your application.

Most banks prefer at least six months of continuous employment in Australia, but some lenders will accept less if you have a strong employment history overseas.

3. Credit History

Your Australian credit report will be reviewed, but overseas credit history is generally not accessible to Australian banks. Some lenders may request evidence of how you’ve handled debts and bank accounts abroad, but these aren’t always decisive.

Avoid submitting multiple credit applications in a short period, as this can negatively impact your local credit score.

4. Deposit and Asset Position

The larger your deposit, the better your chances. Most lenders require at least a 20% deposit from non-residents, though this varies. Having additional assets or savings in Australia also helps demonstrate financial stability.

5. Foreign Income and Currency

Some banks accept foreign income, but not all currencies are considered stable. If accepted, the income is usually discounted (shaded) by 20–40% to account for currency fluctuation risks.

It’s generally advisable to have a portion of your income in AUD and held in an Australian bank account.

Do You Need Australian Credit History First?

Not necessarily. You don’t have to wait years to build a local credit file before applying. If your finances are in order, many immigrants can get approved within months of arriving. Just avoid applying for too many credit products at once.

Make sure to:

• Pay all bills on time.
  
  
• Avoid unnecessary debts.
  
  
• Check your credit score through services like Equifax or Illion.

What If You’ve Had Bad Credit Overseas?

If you’ve had a less-than-perfect credit history abroad, don’t panic. Most Australian lenders won’t be able to access it unless you disclose the details. However, if you’ve declared previous defaults or bankruptcies, some specialist lenders may still consider your application, with higher interest rates or lower borrowing limits.

Be transparent with your broker to avoid surprises during the application process.

Can Immigrants Access Competitive Interest Rates?

Yes. Contrary to popular belief, recent immigrants aren’t automatically offered higher interest rates. In fact, if you meet standard lending criteria, you can qualify for the same competitive rates as local residents.

Some lenders are more migrant-friendly and offer full-featured loan packages, including offset accounts and redraw facilities. Your broker can help you compare multiple options to find the most cost-effective solution.

Why Use a Mortgage Broker for Immigrants' Home Loans?

The lending market in Australia is complex. And for immigrants, navigating it can feel overwhelming. That’s where a mortgage broker can make a huge difference.

Local North Brisbane mortgage brokers at Kelly Brothers Finance understand the unique challenges immigrants face. We’ll match you with lenders who accept your visa type, offer flexible terms, and understand your financial background. Our brokers can help speed up approvals, explain documentation requirements, and negotiate better interest rates on your behalf.

FAQs

Can immigrants get home loans in Australia?

Yes, immigrants can apply for home loans. Approval depends on your visa type, employment, income, and financial position.

What visas are eligible for a home loan in Australia?

Visas such as permanent residency, 491, 482, student visas, and New Zealand SCVs are often eligible. Lenders vary in their acceptance criteria.

How much deposit do I need as an immigrant?

Typically, a 20% deposit is required. Some lenders may allow up to 95% borrowing with LMI, depending on your visa and employment.

Do I need Australian credit history to get a mortgage?

Not always. Many lenders accept new arrivals with stable income and good financials. However, a clean Australian credit record helps.

Is foreign income accepted for home loans?

Some lenders accept foreign income, but they’ll usually discount it to allow for currency risk. Income must be verifiable and in a stable currency.

Can I get a loan if I have bad credit overseas?

Australian lenders generally don’t check overseas credit reports, but some may ask for proof of financial behaviour. Being honest helps your broker find suitable lenders.

What’s the best way to get a home loan as an immigrant?

Work with a mortgage broker who understands the lending policies for different visa types. Brokers like Kelly Brothers Finance can guide you through the process and boost your approval chances.

Final Thoughts

Navigating home loans for immigrants doesn’t have to be difficult. With the right advice and a clear understanding of how the system works, getting approved for a mortgage is well within reach. Whether you’re a skilled migrant, a student turned resident, or relocating with your family, the key is preparation.

At Kelly Brothers Finance, we specialise in helping immigrants like you find the best possible home loan solution. Our North Brisbane mortgage brokers understand the local market and the challenges new arrivals face. Let us simplify the process, explain your options, and handle the heavy lifting for you.

Call us today at 07 3847 9450 to get started with a free consultation. Let’s make your Australian homeownership dream a reality.