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How your visa status changes your LVR and rate

Australian lenders treat borrowers very differently based on visa status. The same income and the same deposit produce materially different loan options depending on whether the applicant is a citizen, PR, 482 holder, 491 holder, 485 graduate, or offshore investor. Understanding the hierarchy is essential for any non-citizen applicant.

The lending hierarchy

From most accessible to most restricted:

  1. Australian citizen: full access, 95% LVR, FHG eligible, sharpest rates
  2. Permanent Resident: equivalent to citizen for almost all lending purposes
  3. Spouse of citizen/PR (partner visa holder): generally treated as equivalent to PR
  4. New Zealand citizen (Subclass 444): similar to PR for lending; specific rules
  5. TRT pathway visa (482 MLT, 186 pending, 191 pending): 80-85% LVR, slightly above standard rates
  6. Other temporary resident work visa (482 STSOL, 494, 491): 70-80% LVR, 20-40 bps premium
  7. Student visa (500): 60-70% LVR, specialist lender only, limited options
  8. Other temporary (188A, 188C, 489, etc.): 60-70% LVR, specialist lenders
  9. Offshore non-resident: 50-70% LVR, FIRB required, most restrictive

How each category affects the loan

Citizens and PRs can access:

  • 95% LVR with LMI
  • FHG (5% deposit, no LMI for first home buyers)
  • First Home Super Saver Scheme
  • State-based first home grants
  • All 80+ lenders in the market
  • Sharpest advertised rates

Partner visa holders (820):

  • Generally 90% LVR accessible with many major banks
  • Spouse as PR/citizen co-borrower often simplifies
  • FHG sometimes accessible (check specific eligibility)

NZ citizens (444):

  • 95% LVR with most lenders
  • FHG eligible from 2023 updates
  • Limited stamp duty concessions in some states (stateside rules)

Medium-Term 482:

  • Up to 90% LVR with supportive lenders (CBA, Westpac often Medium-Term focused)
  • 80% LVR more typical across broader lender pool
  • FHG generally not eligible (PR-only)
  • FIRB required for residential

Short-Term 482:

  • 70-80% LVR typical
  • Fewer lender options
  • FIRB required

491 and 494 (regional provisional):

  • 70-80% LVR typical
  • Rates 20-40 bps above standard
  • FIRB required
  • FHG not eligible until 191 PR granted

485 (graduate temporary):

  • Mixed treatment. Some lenders treat favourably (given PR pathway via 189/190 likely); others restrict to 70% LVR
  • FIRB required
  • Rates often standard or near-standard

Offshore non-resident:

  • Typically 50-60% LVR cap
  • FIRB mandatory for all residential (with fees)
  • Rates often 30-80 bps above standard
  • Specialist lender pool only

The FIRB layer

FIRB (Foreign Investment Review Board) approval:

  • Required for all residential property purchases by non-residents and most temporary residents
  • Application fees scaled by property value: $14,000 for <$1m; up to $130,000+ for very high-value property
  • Typically approved for principal place of residence for temporary residents
  • Increasingly restricted for investment property purchases
  • Processing: 30-45 days typical

FIRB fees are non-refundable and can exceed $30,000 on a $2m purchase. Budget accordingly.

Rate differentials by visa

Typical rate premium over standard owner-occupier rate:

  • PR/citizen: 0 bps (baseline)
  • Medium-Term 482 with strong file: 0-15 bps
  • Short-Term 482: 20-40 bps
  • 491/494: 20-40 bps
  • 485 graduate: 0-30 bps depending on lender
  • 188A/C: 30-60 bps
  • Offshore non-resident: 30-80 bps

Over a 30-year loan, a 40 bps premium on $600k is about $68,000 in total interest.

Income treatment by visa

Lenders often haircut foreign-sourced income:

  • AUD income: full value
  • USD/GBP/EUR income: usually full value at a hedged rate
  • Asian currency income (CNY, JPY, HKD): often haircut 10-20%
  • Emerging market income: haircut 20-40%, sometimes fully excluded

For 188A/C applicants with substantial offshore income, income treatment is often the binding constraint on loan size.

Serviceability at 3% APRA buffer

All non-citizen/non-PR applicants are subject to the same 3% buffer as citizens/PRs. This means the actual loan amount possible is often far below what the applicant’s visa-specific LVR cap would suggest. Work through the serviceability calculation first; the LVR cap is the second constraint.

Moving up the hierarchy

Each step toward PR unlocks significantly better lending:

  • 482 → 186: access to 95% LVR, FHG
  • 491/494 → 191: access to 95% LVR, FHG
  • 485 → 189/190: access to 95% LVR, FHG
  • 188A → 888: access to 95% LVR, FIRB no longer required, rates improve materially

Strategic patience often pays: waiting 12-18 months to reach PR before buying produces substantially better lending economics than buying during the provisional period.

When buying on provisional visa makes sense

  • Stable family situation requiring housing (schools, community)
  • Strong income comfortably servicing at specialist rates
  • Low-LVR purchase (40%+ deposit) minimising the rate premium
  • Property in a rising market where the delay cost exceeds the rate saving
  • FIRB path is straightforward (principal place of residence, metropolitan property)

When renting is the better economic choice

  • High LVR needed and specialist rates are materially above major bank rates
  • Unstable employment or visa pathway
  • Investment purpose (FIRB increasingly restrictive)
  • Short tenure expected before return overseas

Visa status is the most important factor after serviceability in Australian property lending. A specialist broker with migration-linked experience is worth the time to engage for any non-citizen/non-PR applicant.