riccardo1888

Is it possible to get a mortgage / home loan on a 457 visa ?

Any help appreciated

bingobob777

As someone just made redundant on a 457, I wouldn't if I was you

Bermudashorts

It is possible yes, some do it.

Still just checking you understand how your visa works, it is temporary, there is no automatic progression to PR. Your signature indicates you have sold up and you are "going for it" ... so why did you not go for a permanent visa...?

Mummy3

Yes but don't forget if it all goes pants up you have 30 days to leave, is it worth the stress?

Chortlepuss

seconded. I'd hate to be in a position where I had 30 days to offload a property. Super stress!!

riccardo1888

I understand that and my work offered a 457 which they will change to a pr after 1 year (April) but seen a house I like just now. Thanks guys

Dorothy

They won't be "changing to a pr after 1 year". You will still have to qualify for PR and you will still have to be at the same job. What happens if you find yourself out of work in that year?

riccardo1888

We have done the checks and the year is up in 3 months, listen this is not a 457 to pr thread but mortgage on a 457, I know how visa's and employers work.

Mummy3

Have you investigated rates on a 457, would be interested to know if they are much higher?

northernbird

It's 7 years ago but our rates weren't any different but we were limited to how many banks would lend to us.

Dreamy

That was the same for us too - we last had a new 457 mortgage 3 years ago (well, we still have the mortgage but we're citizens now )

I remember people saying on here after that time that it was a lot more difficult to get a mortgage on a 457 though.

riccardo1888

Might just wait then but good to know we could possibly get 1

Craig Vaughan

You can get a mortgage on a 457 visa. Different rules apply when banks decide to lend here given the time period and conditions of a 457 visa. The general rule is you would need a 20% deposit plus costs like stamp duty. There is an exception to this rule if you are a professional applicant (lawyer, accountant, engineer, IT, HR, Finance or someone earning more than say 80k per year) on a 457 visa and intend to apply for PR. In this instance we can get up to 90% LVR/LTV - that is, only a 10% deposit is required.

Effectively they have evaluated the risk of you losing your job and having to go home to be on the lower side and will therefore lend at an higher LVR.

A couple of points:
1) You will need FIRB approval - all foreigners require this approval from the government to buy Australian property. It is however only a formality providing you intend to live in the property. Note that if you do leave the country before you get PR then you are required to sell the property (unless it was a brand new dwelling): see www.firb.gov.au

2) You are not entitled to any first home owners grant and generally will not get any stamp duty benefits either (although it varies from state to state). If you are say 6 months away from getting permanent residency then it could be worthwhile waiting for this. I had a client the other day in Western Australia where if he waited 6 months for his PR, he would save about 14k in stamp duty and 7k for the first home owners grant. Definitely worth the wait unless he believed he was getting a bargain property now.

Hope this helps. Good luck!

Craig Vaughan

PS: Interest rates are no different - you are not charged higher rates or fees because of your visa. The only difference is policy - different banks have different policy dependent on visa, occupation, time remaining on visa, location of property and agreements with their lenders mortgage insurer (if required).

riccardo1888

Craig thank you so much, that is exactly the answer I was looking for. Not what I wanted to hear but a factual statement about mortgages on a 457 ! I think I will wait as I do not want to waste the extra cash on stamp duty etc. thanks again for the post it has helped me a lot !