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Non-Resident Guarantor Home Loans

Despite what you may have heard, it is possible to obtain a non resident home loan that finances 100% of your purchase price even if you are an Australian non-resident.

Loans of this kind are called Non-Resident Guarantor Home Loans, and if you are eligible for them, then you won’t have to pay a single penny as deposit. Read on for more information:-

What is a Guarantor Home Loan?

Guarantor non resident home loans are loans where relatives of the borrower (most commonly parents) agree to be the guarantor for 20% of the purchase price. They can either mortgage their home or pay cash (also called a term deposit) for the same.

Who is a Non-resident? (*only for the purposes of this home loan article)

A non-resident can be either of the following:-

1. A foreign national living in Australia on a temporary visa, like the 457 work visa.
2. An Australian citizen living and working overseas (Australian expats).

What is the eligibility criteria for a non-resident guarantor home loan?

The following criteria need to be satisfied to be eligible for a non-resident guarantor home loan:-

1. A good credit history with either no credit defaults or defaults that have already been paid off.
2. Good employment history outside of the probation period. And if under probation, then the individual must have former experience in a similar position.
3. Assets greater than liabilities, also known as Positive Asset Position.
4. Income that is sufficient to cover the repayment of the loan.
5. Both the property being purchased and the guarantor’s property must be regular residential houses or units.

Who is an eligible guarantor?

The following candidate(s) are eligible as guarantors:-

1. Immediate family members such as parents or siblings. Cousins and friends are not eligible.
2. Guarantor has their own property in Australia and has sufficient equity in the property.
3. Guarantor has a clean credit history.