Foreign Citizens who hold permanent resident visas are treated by Australian Banks as Australian citizens when they are living in Australia. That is, they can borrow up to 95% LVR (ie, with simply a 5% deposit) with the same credit factors that is applicable to their Australian counterparts.
Permanent Residents have entitlement to the 1st Home Owners Grant, stamp duty concessions and any other state benefits available providing they otherwise qualify.
The story is not the same if the permanent resident visa holder is living and working overseas. In this instance, most banks treat these applicants as nonresident foreign residents and will prohibit lending altogether or need bigger deposits. As a rule candidates who aren't Australian residents and who are living abroad will be limited to 80% LVR and will need a 20% deposit plus purchase costs.
There are three exceptions to this rule:
1) The permanent resident is buying with an Australian. In this example, the property and home loan can go in both names and an LVR to 90% and most likely 95% is available. However , its crucial to note that only the revenue from the Australian Citizen will be considered when determining borrowing capacity. That is, when borrowing over 80% LVR, any revenue from a foreign citizen living abroad will be overlooked. Therefore , if the Australian Resident is on home commitments and the Foreign Citizen is earning the revenue, a mortgage won't be available as revenue from the foreign resident will be overlooked. If the situation was reversed and it was the foreign citizen doing home obligations and the Australian Resident was earning the revenue, this would be sufficient;
2) One of the applicants is living in Australia. Ie, if one applicant was living abroad getting a property in joint names with a joint applicant who is living in Australia, then an LVR of greater than 80% is attainable providing the Australian resident is holds permanent residency or Australian citizenship.
3) As of April 2011 some banks have relaxed a little on this tough policy understanding it is biased to treat permanent residents living abroad any different than Australian residents living overseas. Factors is very firm though with the need for genuine savings and a positive asset position.
In summing up, home loans for permanent residents living overseas are available but most lenders will restrict to an LVR of 80% so a 20% deposit and purchase costs will be required.
Permanent residents are exempt from needing to sign up for Foreign Investment Review Board (‘FIRB’) approval.
Kate Ross has a Master in Finance and makes a speciality of helping people to become approved for guaranteed business loan , home loans, slow credit loans, bad credit auto loans, guarantee cards among many other financial products from licensed money lenders