Big 4 bank reduces lending to temporary residents

[Adam from Vista Financial]

A big 4 bank has announced they will reduce their borrowings to eligible Australian temporary residents. Previously a temporary resident could borrow up to 80% of the value of the property which meant a 20% deposit was required. This particular lender has now announced that they will only lend up to a maximum of 70% to eligible temporary residents. This now means a 30% deposit will be required with this lender plus costs associated with the purchase of the property.

 

There are other lenders who will still lend up to 80% to eligible temporary residents (90% in some circumstances).

 

Also note that as a temporary resident FIRB approval is required which is an additional $5,000 see this link for more details http://www.pomsinoz.com/forum/money-finance/243972-temporary-residents-pay-5-000-buy-home.html