In the 2021 census, temporary residents made up over 6% of the Australian population. Given the record overseas migration that's taken place since - a combined 1.2 million people arrived in Australia on temporary visas in the 2022, 2023, and 2024 financial years - it's likely a safe bet that proportion has increased. Meanwhile, estimates put the number of Australian citizens living overseas at over a million.

Both temporary residents and expats often look to buy Australian property. This isn't prohibited, but it can be more difficult to buy housing if you're not an Australian citizen or permanent resident. Here's what to know:

Can temporary residents buy Australian property?

Temporary residents looking to buy property are considered foreign investors under the Foreign Acquisitions and Takeovers Act (1975). That means you'll need approval from the Foreign Investment Review Board (FIRB) to purchase, but the rules aren't as strict as they are for buyers living overseas.

FIRB approval for temporary residents

While temporary residents generally need FIRB approval to buy real estate, they're usually allowed to purchase an established dwelling under the following conditions:

  • The property will be their principal place of residence in Australia

  • The property was vacant at settlement

  • No part of the property is rented out

  • The property is sold within three months of it ceasing to be their principal place of residence

Eligible temporary residents may also be able to get an exemption certificate from the FIRB to purchase an established dwelling to live in while residing in Australia - this applies generally until you buy the property so you don't have to make a separate application every time you make an offer.

Per the FIRB, there are two ways for an individual to qualify as a temporary resident:

  • You hold a temporary visa that permits you to stay in Australia longer than twelve months.

  • You are living in Australia, have submitted an application for a permanent visa, and hold a bridging visa (A, B, or C) that allows you to remain in the country until a permanent application is finalised.

Once you become a citizen or permanent resident, FIRB restrictions no longer apply - you'll be free to buy and own property like any other local buyer.

Can temporary residents get Australian home loans?

Once you've got FIRB approval, you can start applying for a home loan. However, this might not be as simple as it would be for a permanent resident. Some lenders view borrowers on temporary visas as riskier and might be reluctant to deal with such customers.

Madd Loans broker Costa Demetriou said, in his experience, the big banks tend to be more open to these borrowers.

"They've got a higher appetite for risky clients," he told InfoChoice Group.

"Westpac is one of the main lenders that accept more [different] visas … [and] CBA are pretty good."

Banks often specify which visas home loan borrowers can hold in order to qualify for a mortgage. For example, CommBank currently accepts the following:

  • 188 Visa (Excluding Entreprenuer Stream)

  • TSS 488 Visa (medium term stream only)

  • 491 Visa (Main applicant stream only)

  • 494 Visa (Employer sponsored stream only)

801 visa home loans

An 820 visa allows the de facto partner of an Australian citizen, permanent resident, or eligible New Zealand citizen to live with their partner in Australia temporarily. Once you hold an 820 visa, you can apply for an 801 visa and make this arrangement permanent.

If you hold an 801 visa, you're considered a permanent resident and should have no problems applying for a home loan.

However, while you hold an 820 visa, you will likely need FIRB approval to take out a home loan, although your partner will be able to buy without.

Do temporary residents buying property in Australia pay stamp duty?

Madd Loans founder and broker George Samios said borrowers on temporary resident visas should be aware they might be slugged with a much higher stamp duty charge than citizens or permanent residents.


"If you're not an Australian citizen or resident, you'll be paying a lot more stamp duty than normal" he told Your Mortgage.


"I'm talking double."


If you're considering buying alongside a partner who is an Australian citizen or resident, he suggests taking the co-borrower on a temporary visa off the title.


"Let's say it's a husband and wife, and the husband is on a 188 visa and she's an Australian citizen," Mr Samios said.


"We'd say, 'listen, you should just buy in the wife's name because the stamp duty [will be charged at a normal rate]' … you can still use the husband's income, but if you put him on the title you're going to pay a lot of stamp duty."

Home loans for Australian expats

Australian citizens who don't live in the country are often considered an 'ordinarily resident' by the FIRB and don't need approval to buy property. However, expats might find it more challenging to be approved for a home loan.

Many lenders will consider expats' applications, but will likely view those living in a different country as riskier borrowers. This might leave expat property investors facing higher interest rates or higher loan-to-value ratio (LVR) requirements (or both).

How do banks assess the income of expat borrowers?

An expat looking to buy an Australian property might run into problems if they're earning money in a different currency to the mighty AUD. Banks can obviously convert different currencies, but it represents a larger risk to the lender - if the AUD was to appreciate significantly against the currency in question, it could bring down the expat's borrowing power and put them at risk of mortgage stress.

To compensate for this risk, lenders tend to only use a portion of expat's income during serviceability testing. The exact amount can depend both on the lender and the currency in question.

For example, at CommBank, 80% of the income earned in a 'gold' currency can be considered during serviceability assessments. These include the Euro, USD, Canadian, and New Zealand dollars, among others. Those earning income in other currencies might find 70% of their income considered in assessments.

This could vary from lender to lender so it's worth checking out - Mr Samios recommends finding a "specialised broker" who knows which lenders and policies have the best chance of approval.

Expat home loans

There are also a few specialist loan products for expats.

Online lender loans.com.au, for example, offers an 'Expat home loan' to Australian or New Zealand citizens living out of the country. 

International banks that operate in Australia and the country you're residing in - think HSBC or ING - are another potential option, as it might be easier for the lender to manage.