home loans australia

100% Non-Resident Home Loans

Non-Resident Guarantor Home Loans - How to borrow 100% of the purchase price

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.
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non resident loans

Australian Expat Non-Resident Home Loans

Australian Expat Home Loans

Any Australian citizen who resides and works overseas is called an Australian expat. If you are one, then you may be familiar with a popular belief that it is extremely difficult for non-residents to get home loans in Australia.

Don’t get discouraged by this myth!

In reality you have many good options if you are an expat and wish to apply for a home loan.  

How does it Work?

As an expat, you may be considered a non-resident, but there are many loans available in the market that give you the same benefits as a local resident. To determine if you qualify for any of these you need to first check the eligibility criteria:-

  • Different lending institutions have different criteria depending on the country of your current residency.
  • Your financial position must be sufficient to cover the cost of repayment and buffer fluctuations in the currency exchange rate.
  • Job stability is another criteria, and it is considered highly favorable if you have worked for your current employer for at least two years.
  • A clean Australian credit history is important for loan approval. Overseas credit is usually not checked, but some lenders may ask for such credit reports.
  • And you will need bank statements that show your savings and financial assets, hence proving that you are good with money.

Other than this it helps if you have a pre-approval from a good broker. Not only does it improve your chances of finding the right loan product for your situation, but it also gives you more confidence throughout the procedure as you have someone to fall back upon to clear doubts and explain complex financial structures.

Once all this is done, you should go ahead and select a property of your choice. For this make sure you fly back to Australia and personally check the land and credentials of the real estate agent. In fact, it is best if you do not tell the agent about your expat status. Many can take advantage of this fact and present an inflated price.

Beyond that it is not necessary for you to be in Australia. Fax, phone and internet are routinely used these days for completing all the legalities before a loan is sanctioned and received, which usually takes somewhere between 30 to 45 days.

Once that is done and the property is officially yours, you can either ask local family members to help you maintain it and find good tenants, or you can contact a real estate agent to improve the value of your investment.


In most cases non-resident loans are eligible for all of the same loan features as Australian citizens – some of these include:

  • Interest only options up to 15 years
  • 100% Offset
  • Internet & Phone Banking
  • Professional Pack Rate Discounts
  • Construction Loans
  • Fixed rate loan options
  • Extra repayments
  • Redraw
  • Max Loan term 30 years
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