Home Loans for Immigrants in Canberra: A Guide for First-Time Home Buyers

Buying a home in Canberra as an immigrant? It’s a big step, but not an impossible one. Canberra, the capital of Australia, is a thriving city with a growing housing market, and immigrants play a significant role in its development.

But securing a home loan can feel overwhelming—especially when you’re not yet an Australian citizen, or you’re a first-time homebuyer. 

That’s where expert mortgage brokers come in—they help you find the right loan and simplify the process. With access to multiple lenders and local market insights, they can secure the best deal for your situation.

In this guide, we’ll cover everything from eligibility requirements to what type of visa affects your loan options, ensuring you make informed decisions for your homeownership journey.

Why Canberra’s 2025 Property Market is Favourable for Immigrants Seeking Home Loans

Canberra’s property market in 2025 is shaping up to be a great choice for immigrants looking to settle and invest in a home. With a stable economy, high employment rates, and a reputation for a high quality of life, the ACT capital offers long-term security and growth potential.

• Affordable Housing Growth: While Sydney and Melbourne continue to see skyrocketing prices, Canberra offers relatively more affordable entry points. The median house price is around $987,000 and unit prices are about $633,000 (CoreLogic).
• Steady Property Appreciation: Canberra’s property values have consistently appreciated over the past decade. Immigrants see this as a smart investment, knowing the city is less prone to price volatility compared to larger cities. As of 2025, growth is expected to continue, making it an attractive market for first-time homebuyers.
• Favourable Lending Conditions: Canberra’s strong job market, especially in public sector jobs, provides steady incomes that help immigrants meet loan approval criteria. Many lenders are also familiar with the unique needs of immigrants, offering loan products tailored to their circumstances (Domain).

Combined with government programs supporting first-time buyers, Canberra stands out as a top choice for immigrants looking to establish roots in Australia.

Types of Home Loans Available for Immigrants in Canberra

Immigrants in Canberra have access to a variety of home loan options tailored to their residency status, financial situation, and long-term goals. Below are six popular types of loans that cater specifically to immigrants, ensuring flexibility and support throughout the process:

Standard Variable Rate Loans

These standard variable rate loans offer flexible repayment options and the ability to make extra payments without penalties. Suitable for immigrants with fluctuating income or those wanting flexibility in managing their home loan.

Fixed-Rate Loans

Ideal for those seeking stability, fixed-rate loans lock in your interest rate for a set period (usually 1 to 5 years). This is especially useful for immigrants who prefer predictable monthly payments as they settle in.

Low-Deposit Loans

Some lenders offer low-deposit loans with as little as a 5% deposit for immigrants who qualify under certain visa categories or are permanent residents. These are often paired with government programs for first-time homebuyers.

Non-Resident Loans

These non-resident loans are specifically designed for non-permanent residents, like those on work or student visas. Lenders typically require a higher deposit (20-30%) and may have stricter terms compared to loans for permanent residents.

Guarantor Loans

Immigrants with limited savings or credit history can use a family member as a guarantor to secure their home loan. This reduces the need for a large deposit and improves eligibility for competitive rates.

Interest-Only Loans

For those looking to keep initial costs low, interest-only loans allow you to pay just the interest for a set period (typically up to 5 years). This option is often used for investment properties or short-term financial flexibility.

Temporary Resident Home Loans

Visa holders, including those on 457, 482, or partner visas, can access temporary resident home loans. While these loans generally require a larger deposit (20%-30% of the purchase price), many lenders in Canberra offer these products with competitive interest rates. Conditions vary based on the type of visa and the applicant's credit history.

FIRB-Approved Loans (Foreign Investment Review Board)

Foreign nationals who are not permanent residents may need approval from the Foreign Investment Review Board (FIRB) to purchase property in Australia. Some lenders offer FIRB-approved loans that cater specifically to immigrants and non-residents who have obtained FIRB permission to purchase residential property.

State Government Programs for First-Time Buyers

The ACT Government provides programs like the Home Buyer Concession Scheme, which allows certain immigrants and first-time buyers to reduce or eliminate stamp duty, depending on income levels and residency status. This can significantly reduce upfront costs, making homeownership more accessible.

Eligibility Requirements for Immigrants

Before securing a home loan in Canberra, immigrants must meet specific eligibility criteria. These requirements vary based on residency status, visa type, income, and credit history. Below are the key factors that lenders will assess before approving your loan application:

1. Residency Status

Your residency status plays a major role in determining your eligibility:

• Permanent Residents: Treated similarly to Australian citizens by most lenders, permanent residents are generally eligible for a wide range of loans with competitive rates.
• Temporary Residents: Non-permanent residents, such as those on 457, 482, or student visas, can also apply for home loans but may face stricter lending conditions, such as needing a higher deposit (typically 20-30% of the purchase price).
• Foreign Nationals: If you don’t hold permanent residency or a long-term visa, you may require Foreign Investment Review Board (FIRB) approval before purchasing property. Loan options will likely be limited, and deposits required are higher.

2. Visa Type

Lenders will evaluate your visa type to determine your loan eligibility:

• Permanent Residency Visas: Those holding PR visas have access to standard home loans with similar terms to Australian citizens.
• Temporary Visas: Some visa types, like the 482 (Temporary Skill Shortage Visa) or Partner Visas, allow holders to access home loans, although conditions like higher deposits and interest rates often apply.

3. Income and Employment History

Lenders will check that you have a stable and verifiable source of income. Temporary residents may need to show longer employment history to demonstrate financial stability.

• Local and Foreign Income: Immigrants with foreign income may have a portion of it considered in their application, depending on the lender.

4. Credit History

Your credit score is essential for determining loan terms and approval:

• Australian Credit History: Lenders prefer applicants with an established credit history in Australia, though some may accept international credit reports if you’ve recently moved.
• International Credit History: Immigrants new to Australia may be required to provide credit reports from their home country for validation purposes.

5. Deposit Requirements

For most immigrants, a higher deposit is necessary:

• Permanent Residents: May qualify with as little as 5-10% of the property’s purchase price.
• Temporary Visa Holders: Usually need a deposit of 20-30%, depending on the lender and visa type.

Case Study: Carlos’ Journey to Homeownership in Canberra

Carlos, a skilled worker from Brazil, moved to Canberra on a 482 visa in 2020. He worked in IT and decided it was time to buy his first home. Here’s how he did it:

• Residency Status: Carlos wasn’t yet a permanent resident, but he still qualified for a home loan with a 482 visa. He had to provide extra documentation, including proof of income and his visa conditions.
• Credit History: Carlos had limited Australian credit history but provided his international credit report to meet the lender’s requirements.
• Loan Approval: With a 20% deposit and a steady income, Carlos secured a loan with a private lender at a competitive rate. Today, he’s settled in his new Canberra home.

Tips for Immigrants: Getting a Successful Home Loan in Canberra

Securing a home loan in Canberra can be easier if you’re well-prepared. Below are five essential tips to help you through the process:

1. Check Your Immigration Status

Your legal status in Australia plays a crucial role in loan eligibility. Make sure to confirm your immigration status with lenders, as it will affect the types of mortgages and loan terms available to you.

2. Prepare for Higher Closing Costs

Immigrants may face additional closing costs. This includes stamp duty, legal fees, and sometimes extra charges for foreign nationals who are not permanent residents.

3. Understand Loan Limits

Certain lenders have loan limits for immigrants, especially those on temporary visas. Be sure to check how much you’re eligible to borrow, as this can vary based on your residency status.

4. Build Your Credit History

Having a strong credit history is essential for securing a conventional loan. Work on building your Australian credit score, or provide international credit reports from recognised credit reporting agencies.

5. Know Your Mortgage Options

Different types of mortgages are available to immigrants, including fixed-rate and variable-rate loans. Make sure you know which loan type is best suited to your financial situation. Some immigrants eligible for government schemes may benefit from payment assistance programs.

FAQs

Can I get a home loan if I am not a permanent resident in Australia?

Yes, non-permanent residents can apply for home loans, but they may face higher deposit requirements and stricter loan conditions. Loan options depend on your visa type and immigration status.

Do Australian banks lend to non-residents?

Yes, some Australian banks lend to non-residents, but eligibility and terms vary. You may need a larger deposit and meet additional criteria like Foreign Investment Review Board (FIRB) approval.

Can I buy a house in Australia on a 485 visa?

Yes, temporary residents on a 485 visa can buy property, but loan conditions may be more stringent. Lenders may require a larger deposit, typically around 20-30%.

Can I get PR in Australia by buying a house?

No, buying a house in Australia does not directly grant permanent residency. PR is determined by immigration pathways, not property purchases.

Can I buy a house in Australia as a non-citizen?

Yes, non-citizens can buy property in Australia, but may require FIRB approval. The approval depends on your residency status and the type of property.

What banks are in Australia for foreigners?

Major banks like Commonwealth Bank, Westpac, and ANZ offer loans to foreigners, including non-residents. Non-bank lenders and private lenders also provide home loans for foreign nationals.

Conclusion

Owning a home in Canberra is an exciting step for many immigrants, and the process is more achievable with the right guidance. Whether you're a temporary resident or looking to settle long-term, understanding your loan options and eligibility is key to making informed decisions. 

If you're ready to take the next step, our expert team at Home Loan Brokers Canberra is here to help. Call us at 02 6173 6397 to get tailored advice and find the best home loan for your situation.