Australia has one of the highest proportions of migrant homebuyers in the world — and for good reason. Property is both a financial investment and a statement of belonging. But the path from arriving in Australia to buying your first home involves rules that vary dramatically depending on your visa type, your income sources, and which lender you approach.
This guide covers the full picture: what you can legally buy, when you need FIRB approval, how lenders treat overseas income, and which visa types open the most doors.
The Most Important Distinction: PR vs Temporary Visa
The single biggest factor in your property-buying eligibility is whether you hold a permanent visa or a temporary visa.
Permanent residents (PR) — holders of any permanent visa including subclass 189, 190, 191, 887, or spouse/partner permanent visas — are treated identically to Australian citizens for property purchase and lending purposes. No FIRB approval. No restrictions on property type. Full access to all lenders at standard rates.
Temporary visa holders — including 482 (TSS), 186 (ENS), 187 (RSMS) before grant, student visas, and most bridging visas — are classified as foreign persons under the Foreign Acquisitions and Takeovers Act and must obtain FIRB (Foreign Investment Review Board) approval before purchasing property.
Visa-by-Visa Eligibility
Property buying eligibility by visa type
Full access — same as citizen
No FIRB. Buy any type of property. All lenders. Standard rates and deposit requirements.
Same as permanent resident
New Zealand citizens on Special Category Visa (subclass 444) are treated as permanent residents for property and lending purposes.
Temporary — FIRB required
Can purchase one established dwelling as principal place of residence with FIRB approval. Cannot purchase as investment. FIRB fee applies. Lenders typically require 20–30% deposit.
Depends on stage
Once PR is granted, full access. While on bridging visa during application, treated as temporary. Many lenders will approve with evidence of pending PR grant.
Very limited
FIRB approval required. Most lenders will not lend to student visa holders. Limited to purpose-built student accommodation in some cases. Specialist lenders only.
Case-by-case
Treated as temporary. FIRB may apply. Some lenders accept if underlying visa application is strong (e.g. PR application lodged). Broker guidance essential.
Understanding FIRB: What It Is and What It Costs
The Foreign Investment Review Board (FIRB) regulates foreign investment in Australian real estate. If you are a temporary visa holder, you must apply for and receive FIRB approval before entering into a contract to purchase property.
Key FIRB rules for temporary residents purchasing a principal place of residence:
- One property only. Temporary residents can hold only one residential property at a time as a FIRB-approved purchase.
- Must be your home. The property must be used as your principal place of residence — not rented out or left vacant.
- Must notify FIRB when selling or vacating. If you leave the property or sell, you must notify FIRB within 30 days.
- Cannot buy investment properties. Temporary residents cannot purchase established residential properties purely for investment.
- New dwellings are different. Temporary residents can purchase new dwellings (off-the-plan or newly completed) as investment properties — but FIRB approval still required and different rules apply.
FIRB application fees
FIRB fees are based on the property value. For a property valued at $1M–$2M, the FIRB application fee is approximately $13,200. Fees increase for higher-value properties. Factor this into your purchase costs — it is non-refundable even if the purchase does not proceed.
How Lenders Treat New Migrants
Visa type determines FIRB eligibility. But lender policy determines whether you can actually get a loan — and on what terms. Here is what lenders assess differently for recent migrants:
Employment history in Australia
Most lenders want to see at least 6–12 months of employment in Australia. Some will accept from the first day of employment if the visa type is strong and income is fully verified. Lenders are assessing stability — a long-term skilled visa with a strong employer is more compelling than a recent casual role even at higher pay.
Overseas income shading
If part or all of your income is still earned overseas (common for remote workers, business owners, or those in transition), most lenders shade that income by 20–40%. Specifically, income in AUD equivalent from stable overseas employment at reputable employers may be accepted at 80% — meaning $100k overseas becomes $80k for serviceability purposes. Income in less stable currencies or from self-employment overseas is shaded more aggressively or excluded entirely.
Deposit requirements
Permanent residents: standard 5–20% deposit (same as citizens). Temporary visa holders: most lenders require 20–30%, and some will not lend to temporary visa holders at all. A handful of specialist lenders offer products specifically designed for visa holders — typically at slightly higher rates but with more flexible LVR policies.
Thin Australian credit file
Recent migrants typically have no Australian credit history. This is different from bad credit — it is no credit. Most lenders can assess a "thin file" using alternative evidence: rental history, overseas credit reports (from the UK, NZ, or other comparable systems), length of stable employment, and visa strength. Specialist lenders are significantly more accommodating of thin files than major banks.
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Which Lenders Work Best for New Migrants?
Not all lenders assess migrant applications the same way. Here is a practical breakdown:
The practical implication: a PR holder has essentially the same lender access as a citizen. A temporary visa holder needs a specialist lender — and needs a broker who knows the specific lending policies for their visa subclass, because policies change frequently and vary significantly even within the same lender family.
Thin File vs Bad Credit: An Important Distinction
Many new migrants worry their lack of Australian credit history will count against them as badly as bad credit. It does not — and the distinction matters.
A thin credit file means there is simply no data yet. Lenders can assess a thin file using employment stability, visa strength, deposit size, and in some cases overseas credit reports. A bad credit file means there is data, and it reflects negative conduct — defaults, late payments, court judgments. These are treated very differently.
If you have both a thin Australian file and a credit issue from overseas, this does create more complexity — but specialist lenders who work with migrant buyers regularly encounter this and can structure applications accordingly. See our guide on bad credit home loans in Australia for how specialist lenders approach credit issues generally.
Using Overseas Savings as Your Deposit
Most lenders will accept overseas savings as a genuine deposit, subject to verification. What they require:
- 3–6 months of overseas bank statements showing the funds have been held (not a recent lump-sum transfer)
- Evidence of the source of funds (savings history, salary credits, or inheritance documentation)
- Funds to be in an Australian account before or at settlement
- Currency conversion may trigger AML (anti-money laundering) documentation requirements for large transfers
This is generally straightforward for salaried employees with verifiable employment. It can be more complex for business owners, self-employed workers, or those with funds from property sales overseas. A broker familiar with migrant applications can prepare the documentation package in a way that pre-answers lender questions before they arise.
The Path from Temp Visa to Full Lender Access
If you are currently on a temporary visa and your PR is in progress, the strategy most Mortgagefy clients use is:
- Get pre-approved now (if buying is urgent) with a specialist lender that accepts your visa type, at a 20% deposit and slightly higher rate.
- Alternatively, wait for PR if the timeline is short (6–12 months) — you will immediately access better rates and lower deposit requirements, and the major bank market opens up entirely.
- Refinance post-PR if you purchased on a temp visa product — once PR is granted, you can refinance to a standard major bank product at a much lower rate, often without needing to re-qualify from scratch.
For multicultural buyers in Western Sydney specifically — Bankstown, Parramatta, Liverpool — we have brokers fluent in Arabic, Bangla, Urdu, and Tamil who understand both the cultural context and the specific lender policies. See our Bankstown mortgage broker and Parramatta mortgage broker pages for local team contacts.
Grants and Concessions for New Migrants
Permanent residents are eligible for the same NSW state and federal government schemes as citizens:
- First Home Owner Grant (FHOG) — $10,000 for new builds under $600,000, for eligible PR holders who have never owned property in Australia
- First Home Guarantee — 5% deposit with no LMI (government guarantee covers the gap), for PR holders purchasing their first home
- Stamp duty exemption / concession — available in NSW for eligible first home buyers including PR holders on purchases under $800,000
Temporary visa holders are not eligible for FHOG but may be eligible for the First Home Guarantee if they are purchasing with a PR co-borrower. This is an area where specific advice is essential — the rules interact with visa type in ways that are not always obvious. For a full breakdown of first home buyer schemes, see the first home buyer guide.
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