Home Loan for 457 Visa Holders in Canberra: 2025 Expert Guide

So, you’re on a 457 visa in Canberra and keen on buying your first home or investment property? Well, here’s some good news: it's totally possible to secure a home loan as a 457 visa holder. But it’s not always straightforward. Different lenders have different policies, and there are several hoops to jump through. 

That’s where a good mortgage broker comes in. They know the local market, understand which lenders work with temporary residents, and can streamline your loan application.

In this guide, we will walk you through the process of obtaining a home loan as a 457 visa holder in Canberra, breaking down each step, outlining eligibility requirements, and providing tips to make the process simple and straightforward. Let’s dive in!

Understanding Home Loans for 457 Visa Holders

A 457 visa holder (or those on the subsequent Temporary Skill Shortage (TSS) visa subclass 482) is a skilled worker who is sponsored by an Australian employer to live and work in Australia for up to two to four years, depending on the visa terms. 

This type of visa requires the holder to work full-time for their sponsoring employer, and family members can often accompany them under similar conditions. 

For these visa holders, owning a home in Canberra goes beyond simply having a place to stay—it's a step toward achieving stability, securing an investment for the future, and potentially paving the way for permanent residency. By securing a home loan, 457 or TSS visa holders can build equity in their property and benefit financially in the long run, often making it a smarter choice than renting.

457 Visa Holders vs 491 Visa Holders: A Quick Comparison

While both 457 and 491 visa holders are considered temporary residents, the path to homeownership can differ:

• 457 Visa Holders: Primarily issued for skilled workers, this visa allows holders to work and live in Australia for up to four years. Home loan options are often more flexible, and some lenders may even offer up to 90% LVR (Loan-to-Value Ratio), though a 20% deposit is generally expected.
• 491 Visa Holders: A regional provisional visa with a five-year term, allowing holders to live and work in specific regional areas (including Canberra). Since it has a stricter regional focus, lenders may be more cautious, and the borrowing criteria can sometimes be tighter than for 457 holders.

Both visa types can access a variety of loan products, but understanding your specific visa type is crucial in determining what loan options are available and what deposit requirements you’ll need to meet.

Eligibility Requirements for 457 Visa Holders Home Loans

457 visa holders looking to secure a home loan in Canberra need to meet certain criteria. Lenders often have stricter policies for temporary visa holders, so it’s crucial to know what’s required:

• Deposit: Generally, a minimum 20% deposit is needed. Some lenders may accept as low as 10%, but this often comes with higher interest rates or Lenders Mortgage Insurance (LMI).
• Stable Income: Proof of steady employment in Australia is a must. Lenders look for a stable and strong income to ensure you can handle your mortgage payments.
• Good Credit History: A solid Australian credit history can boost your chances. If you've just arrived, some lenders will also consider your overseas credit history.
• Visa Validity: At least 12 months remaining on your visa is usually required, along with evidence that you're eligible for renewal or transitioning to permanent residency.

Essential Documentation Needed for Application

When applying for a home loan, 457 visa holders need to provide the following documents:

• Passport & Visa Details: Proof of your visa status and validity.
• Proof of Income & Employment: Payslips, employment contracts, and tax returns.
• Bank Statements: Showing savings and transaction history.
• Credit Report: Australian credit report, and possibly an international one if you’re a recent arrival.
• FIRB Approval (if needed): Foreign Investment Review Board approval is required for foreign citizens purchasing property.

Examples of 457 Visa Holders

• Skilled Workers in Tech & IT
• Healthcare Professionals (Doctors, Nurses)
• Engineers (Civil, Electrical, Mechanical)
• Educators & Teachers
• Finance & Banking Professionals

These skilled professionals often use the 457 visa to live and work in Canberra while enjoying the opportunity to invest in property and build a stable future.

Canberra Property Market in 2024: What It Looks Like for 457 Visa Holders Seeking Homeownership

The Canberra property market continues to show steady growth in 2024, making it an attractive destination for 457 visa holders considering homeownership or property investment. According to the latest data fromDomain, Canberra’s median house price is around $880,000, with units averaging $610,000, reflecting a strong and resilient market.

Why Canberra is Ideal for 457 Visa Holders

1. Stable Job Market: Canberra’s economy is solid, particularly in sectors like public administration, IT, healthcare, and education. The availability of strong employment opportunities provides stability for skilled 457 visa holders.
2. Consistent Growth: The Canberra property market has shown consistent price growth, offering potential capital gains for homeowners and investors alike.CoreLogic indicates steady annual growth, making it a reliable choice for long-term investment.
3. Family-Friendly & Quality of Life: As Australia’s capital, Canberra offers excellent education, healthcare, and amenities, along with being one of the safest cities in the country. The strong sense of community and quality of life are attractive to 457 visa holders planning to settle down.
4. Government Support & Infrastructure: Continued investments in infrastructure, transport, and community developments make Canberra a forward-looking city, adding further value to property investments.

A Balanced Market for Visa Holders

With its stable growth and strong employment prospects, Canberra offers 457 visa holders an ideal environment to buy a home and build their future. Coupled with lower competition than larger cities like Sydney or Melbourne, it provides a more accessible entry point into the Australian property market.

Types of Home Loans for 457 Visa Holders

If you’re a 457 visa holder in Canberra, securing the right home loan requires knowing your options. Here’s a brief rundown on the main types of home loans you may qualify for:

Variable Rate Home Loan

Variable rate loans have interest rates that change over time based on the lender's discretion and market conditions. You benefit when rates go down but should be prepared for possible increases, which can affect your repayments.

Fixed Rate Home Loan

These loans offer a fixed interest rate for a set period, typically 1 to 5 years. It gives you certainty in your repayments, making it easier to budget. However, you won't benefit from interest rate drops during the fixed period.

Interest-Only Home Loan

Interest-only loans allow you to pay only the interest for a specified period (often 1-5 years), which can make the initial repayments lower. After this period, your repayments will increase as you start paying off the principal as well.

Split Home Loan (Fixed and Variable)

A split home loan allows you to combine the best of both worlds, with part of your loan on a fixed rate and the other part on a variable rate. This approach can help balance the security of fixed repayments and the flexibility of potential rate drops.

Low-Deposit Home Loans (LVR Loans)

Some lenders may allow you to borrow up to 90-95% of the property value, which means you can get a home loan with just a 5-10% deposit. However, lenders may require 457 visa holders to pay Lenders Mortgage Insurance (LMI) when borrowing more than 80% of the property value.

Government Grants and Support for 457 Visa Holders in Canberra

In the ACT, most government grants, such as the First Home Owner Grant (FHOG), are typically reserved for Australian citizens and permanent residents. 

As of 2023, 457 visa holders are generally not eligible for these grants.

However, 457 visa holders might benefit from stamp duty concessions if they meet specific criteria. For the most up-to-date information on grants and concessions available, refer to the ACT Revenue Office or consult a mortgage broker familiar with current policies for temporary residents. 

Additionally, the Foreign Investment Review Board (FIRB) will usually require 457 visa holders to obtain approval before purchasing a property, which may involve fees and specific conditions.

The Step-by-Step Home Loan Application Process for 457 Visa Holders

Ready to start your homeownership journey in Canberra? Here’s a step-by-step breakdown of the mortgage application process, from understanding your borrowing capacity to securing loan approval. 

Each step is tailored to help 457 visa holders make informed decisions while navigating the Australian property market.

1. Assess Your Borrowing Capacity: Calculate how much you can borrow by considering your income, expenses, and type of visa. Lenders will use this to decide your maximum loan amount, factoring in additional costs like stamp duty surcharge and loan repayments.
2. Choose the Right Type of Loan: Decide between the types of loans available, such as variable rate, fixed rate, or interest-only loans. The type of loan you select can affect your repayments, loan term, and overall costs. Ensure you seek competitive rates that suit your needs.
3. Check Your Credit Score & Financials: A good credit score is key for 457 visa holders applying for a loan. Make sure your financial documents are in order, including proof of income and savings. Your credit score and financial history will play a big part in the loan approval process.
4. Get Pre-Approval from an Australian Bank: Reach out to lenders like Commonwealth Bank or other Australian banks to get pre-approval for a loan. This step is essential as it gives you a clearer idea of your budget and shows sellers you're a serious buyer.
5. Find Your Property & Confirm the Purchase Price: Once pre-approved, you can begin searching for a property within your budget. Remember to factor in additional costs like the stamp duty surcharge that may apply to foreign buyers and other property purchases.
6. Submit a Full Loan Application: Submit your mortgage application with all required documents: proof of employment, income, deposit, and details of your type of visa. Your application process may involve more steps than for Australian residents, so provide accurate and complete information.
7. Receive Loan Approval & Finalise Terms: After your lender reviews your documents and financials, you’ll receive loan approval. Confirm the final loan term, repayment schedule, and any additional conditions set by the lender. This will include details on your maximum loan and repayment terms.
8. Complete the Settlement Process: Once your loan is approved, the lender will arrange settlement, finalising the purchase of your property. Make sure all legal and financial obligations are met, including any Australian government requirements specific to your visa status.

By understanding each stage of the loan process and preparing the necessary documentation, 457 visa holders can increase their chances of securing the right loan to purchase their new home or investment property in Canberra.

Case Study: Sarah’s Home Loan Success as a 457 Visa Holder

Background:

Sarah, originally from the UK, moved to Canberra on a 457 visa in 2017 to work as a nurse. With stable employment at a local hospital and a desire to stay in Australia long-term, she wanted to buy her first home. Though her employer sponsored her visa, she was still considered a temporary resident, which made finding a loan a bit more complex.

Challenges:

Sarah faced a few hurdles: a 20% deposit requirement from most lenders, the need to demonstrate a good credit score with only a short Australian credit history, and understanding how her visa status impacted her borrowing capacity.

Solution:

Sarah worked with a mortgage broker who specialised in home loans for visa holders. The broker helped her find a lender who accepted a 10% deposit and was comfortable with her remaining visa term. By providing solid proof of income, stable employment history, and additional documentation on her overseas credit history, Sarah secured a home loan at competitive rates.

Outcome:

Within six months, Sarah bought her two-bedroom townhouse in Canberra. By making consistent mortgage payments, she’s been building equity and positioning herself well for a transition to permanent residency.

FAQs

Can 457 visa holders buy property in Canberra?

Yes, 457 visa holders can buy property, but they may face additional requirements and costs.

What deposit is needed for a 457 visa home loan?

Typically, a 20% deposit is required, but this can vary based on lender policies.

What are the new rules for 457 visa to permanent residency?

The 457 visa was replaced by the Temporary Skill Shortage (TSS) visa (subclass 482) in 2018. However, existing 457 visa holders can still transition to permanent residency through pathways like the Employer Nomination Scheme (subclass 186), but they must meet criteria regarding their occupation, employment duration (at least 3 years), and employer sponsorship.

Is a 457 visa holder a resident for tax purposes?

A 457 visa holder can be considered an Australian resident for tax purposes if they work and live in Australia consistently for six months or more and have a permanent place of abode. The Australian Taxation Office (ATO) determines tax residency based on individual circumstances and factors like the purpose and length of stay.

Do all lenders offer home loans to 457 visa holders?

No, not all lenders do. It’s best to consult a broker who specialises in non-resident home loans.

What’s the loan term for a 457 visa home loan?

Loan terms are similar to those for citizens but may be adjusted based on visa expiry and other factors.

Can I switch to a lower rate if I get permanent residency?

Yes, once you obtain permanent residency status, you may have access to better rates.

Conclusion

In summary, getting a home loan as a 457 visa holder in Canberra is entirely possible with the right preparation and support. By understanding the process, gathering the necessary documentation, and finding the right lender, you can take a significant step toward owning your own home in Australia. 

If you’re ready to explore your options or need guidance tailored to your situation, reach out to Home Loan Broker Canberra at 02 6173 6397. We’re here to help you make your homeownership dreams a reality!