If you’re living in Australia on a temporary visa and want to own a home at some point in the near future, you’re certainly not alone. That’s where a lot of international students and skilled other workers are at now, but the good news is that it is actually possible to purchase a house or apartment before you become a permanent resident.
However, it’s naturally not as straightforward as it is for citizens or PR holders – there are extra rules to follow and approvals to obtain.
This guide will walk you through everything you need to know, from eligibility and government approvals to financing considerations and common challenges.
Can Temporary Visa Holders Buy Property in Australia?
In short, yes – but there are conditions. Australian law classifies anyone who isn’t a citizen or permanent resident as a foreign person when it comes to property. So if you’re on a temporary visa (because you’re an international student, for example), you can buy residential property, but you must get permission from the Foreign Investment Review Board (FIRB) first.
FIRB approval is the government’s way of overseeing foreign buyers and making sure investment from abroad adds to the housing supply rather than displacing local buyers.
It’s crucial to note here that while that’s generally the process you’d have to go through, there has actually been a key update imposed by the government that’s changed this. Now, temporary visa holders can generally only buy new dwellings or vacant land – not established (second-hand) homes.
In fact, as of April 2025 the government has temporarily banned foreign buyers (including those on temporary visas) from purchasing existing houses altogether until the 31st March 2027. So if you hoped to buy a classic Aussie cottage, you’ll need to look at brand-new properties instead. The idea is to encourage new construction and increase housing stock. This is obviously a pretty contentious rule, but there are a few exceptions.
Exceptions
If you’re buying a property jointly with an Australian citizen or permanent resident – for example, purchasing with an Aussie spouse or partner – then you won’t need FIRB approval. In that case, the law treats it as a domestic purchase. Aside from that scenario, you should expect to go through the FIRB process for any property you buy while you’re on a temporary visa.
Navigating the FIRB Approval Process
Getting FIRB approval is the first major step in buying property as a temporary resident. It might sound a bit complicated, but it’s actually a routine process with a bit of planning. You’ll need to submit an application and pay a fee.
The fee isn’t trivial – it varies based on the property price, but it will likely be several thousand dollars. Once you apply and pay, you have to wait for the decision. It usually takes a few weeks (often up to 30 days) for the authorities to process your application, so make sure to allow for that timeline. So basically, don’t commit to purchasing a home until your FIRB approval has come through.
In most cases, FIRB will approve a temporary resident’s purchase as long as you’re buying an eligible property (i.e. a new one) and you comply with any conditions. Again, you will not be able to purchase an existing property while this temporary suspension is active until the 31st of March 2027.
After You’ve Been Approved
When approval is granted, you’ll receive a “no objection” letter giving you the green light to proceed. Since you’ll be buying a new property, the conditions on your approval are usually straightforward and easy to meet.
The main thing is that you must have FIRB approval before you settle on the property, because buying without it is illegal and comes with penalties. If you’re uncertain about timing, talk to your solicitor or conveyancer about making your purchase contract conditional on FIRB approval to protect yourself.
Deposits, Loans, and Lending Considerations
Arranging finance is the next big piece of the puzzle. Getting a home loan as a temporary visa holder is definitely possible, but lenders will set some extra requirements.
The most notable difference is the deposit needed. While many Australian citizens manage to buy with a 10% deposit or less, as a non-resident you’ll typically be expected to have a larger down payment. Banks often require a 20% deposit from temporary residents, and many will lend only 70-80% of the property’s value. This means you may need to contribute 20-30% of the price yourself.
Your visa status and employment will also be under scrutiny. Lenders prefer borrowers who have some certainty of staying in Australia. Having at least 12 months remaining on your visa and a stable full-time job (usually at least six months with your current employer) are very important.
Building a good credit history in Australia (by paying your bills on time, etc.) will help as well, since banks review your credit file during loan assessment.
Not all lenders cater to temporary visa holders, but many do. Policies vary, so it can save time and stress to speak with a mortgage broker who has experience in this area.
They can identify which lenders are most likely to approve your application and guide you through the paperwork. If you have an Australian citizen or PR co-borrower (say you’re buying with your partner), that can significantly strengthen your loan application – some banks will be much more flexible if one of the borrowers is a local.
Common Challenges and How to Overcome Them
Buying property on a temporary visa comes with a few extra challenges that local buyers don’t face. One major hurdle is the additional costs. We’ve already mentioned the FIRB fee, but you should also budget for the stamp duty surcharges that most states charge foreign purchasers. This surcharge is on top of the standard stamp duty and can be significant.
For example, in New South Wales and Victoria, foreign buyers (including temporary residents) pay around an extra 8% of the property price as a stamp duty surcharge. That can amount to tens of thousands of dollars in extra tax.
The only way to avoid these charges is to wait until you become a permanent resident or to buy together with an Australian partner who is exempt. Otherwise, it’s a cost you’ll have to factor into your plans.
Another challenge is timing and paperwork. The buying process can take longer because you need FIRB approval and extra checks for your loan. It’s important to plan ahead and start early. Ideally, have your FIRB approval (or at least your application submitted) and a mortgage pre-approval in place by the time you’re ready to make an offer.
And be cautious with auctions – since auction sales are unconditional, you should only bid if your FIRB approval is already granted and your financing is solid. The extra legwork can be stressful, but with good preparation you can manage.
Despite the hurdles, remember that plenty of temporary residents successfully buy homes in Australia each year. You can be one of them with careful preparation and the right help.
How Upscore Can Help
Upscore’s Finance Passport can help you match with lenders that are tailored to your needs. Our team of advisors will guide you through the whole process until it’s over and you secure the mortgage you were looking for.
