Your mortgage history, salary and credit record in the UK count for less than you might expect when you first apply for an Australian home loan. Lenders look closely at your visa, where your income comes from and how long you have been in your job, and the answers can change how much you can borrow and how big a deposit you need. This article covers what Australian lenders assess, the visa questions that come first, and how to get your paperwork in order.
Your visa comes before everything else
For lenders, the first dividing line is residency status. Australian citizens and permanent residents are generally assessed on the same terms. If you hold a permanent visa, most mainstream lenders will treat you much like a local borrower, subject to the usual checks.
Temporary visa holders are in a different position. Many lenders either do not lend to them or apply tighter rules, such as larger deposits and lower maximum loan sizes. There are also government restrictions on what foreign persons can buy. Temporary residents usually need approval through the Foreign Investment Review Board, and a temporary ban introduced from April 2025 generally prevents foreign persons, including most temporary residents, from buying established homes for a set period, with limited exceptions. These rules change, so check the current position before you start looking at properties.
If you are not sure exactly what your visa allows, confirm your status and conditions with the Department of Home Affairs. Lenders will ask for evidence of your visa, so have the grant letter to hand.
Why your UK credit history doesn’t follow you
Australian credit reporting bodies do not generally hold your UK credit file, so you arrive with little or no local history. A thin file is not necessarily a problem, as lenders understand that new arrivals have not had time to build one, but it means they will look harder at other evidence.
Some practical steps help:
- Open an Australian bank account soon after arrival and have your salary paid into it.
- Consider a modest credit card with a low limit, paid in full each month, to start building a record.
- Keep UK statements, mortgage statements and references in case a lender will consider them.
- Avoid applying to lots of lenders at once, as each formal application can show up as an enquiry.
Income, employment and deposits
Lenders like stable, local income. If you have arrived with a job offer in Australia, they will want your employment contract, recent payslips and sometimes a letter from your employer. Some lenders are cautious if you are still in a probation period, while others will accept it for certain professions or with a stronger application.
Income earned in pounds is often treated differently from Australian dollar income. Lenders may only count part of it, apply a currency buffer or decline to use it altogether. Rental income from a property you have kept in the UK may also be discounted.
Deposits follow the same logic. Borrowing more than about 80 per cent of a property’s value usually means paying lenders mortgage insurance, which protects the lender rather than you. Funds coming from overseas may need a clear paper trail showing where the money came from, so keep records of transfers and the sale of any UK home.
Getting a loan in place: the usual sequence
- Confirm your eligibility. Check your visa conditions and whether foreign investment rules apply to you.
- Gather documents. Passport, visa, payslips, employment contract, bank statements and evidence of your deposit, including where it came from.
- Speak to a lender or broker. Mortgage brokers in Australia are licensed and compare products across a panel of lenders. Some focus on clients who have recently migrated.
- Seek pre-approval. Conditional approval gives you a borrowing limit to shop with, though it is not a guarantee of final approval.
- Budget for buying costs. Transfer duty, legal or conveyancing fees, inspections and lender fees all need to be paid on top of the deposit.
Budgeting for duty and other costs
Transfer duty, still widely called stamp duty, is charged by each state and territory and can be a significant amount. Rates, concessions for first home buyers and surcharges for foreign buyers all vary across Australia. In Queensland, for example, the Queensland Revenue Office’s transfer duty information explains how duty is calculated, what concessions exist and when additional foreign acquirer duty applies. For a comparison with the system you know from home, see our piece on stamp duty in Australia versus SDLT.
Do not assume you qualify for a first home buyer concession or grant just because you have never owned property in Australia. Many schemes count property owned anywhere in the world, and some depend on citizenship or residency. Check the rules in your state before you build them into your budget.
Questions readers ask
Can I get a mortgage on a temporary skilled visa?
Some lenders do lend to temporary visa holders, usually with tighter conditions. You will also need to check foreign investment rules, which currently restrict buying established homes.
Will an Australian lender use my UK salary?
Some may consider overseas income, but many discount it or exclude it. A local salary paid into an Australian account generally makes an application much simpler.
Is a mortgage broker worth using as a new arrival?
A broker can be helpful because lender policies on visas and overseas income differ widely. Check that they hold an Australian credit licence or act as an authorised credit representative.