Buying A House in Australia As a Permanent Resident: Step-By-Step Guide

Buying a home can feel complicated when you have only recently become a permanent resident.

However, permanent residency removes one major hurdle.

You can generally buy residential property in Australia without foreign investment approval.

You can also access home loans from major Australian lenders, subject to their lending criteria.

The bigger challenge is knowing which rules still apply to you.

You need to understand permanent resident home loans, FIRB exemptions, deposit requirements and state taxes.

You also need to know how lenders assess your income and existing debts.

This guide explains how to buy a house in Australia as a permanent resident.

It covers the process from checking your residency through to settlement.

What is a permanent resident in Australia?

An Australian permanent resident holds a permanent visa allowing them to remain in Australia indefinitely.

Permanent residency differs from temporary residency.

For example, a temporary visa may have an expiry date or specific conditions.

A permanent visa provides a different immigration status.

This distinction matters because property rules can treat temporary residents and permanent residents differently.

Your visa status can also affect your eligibility for some government home-buying schemes.

Can permanent residents buy property in Australia?

Yes. Australian permanent residents can generally buy residential property in Australia.

Permanent residents are exempt from the Australian foreign investment approval requirements for residential property.

The Australian Government confirms that holders of Australian permanent residency visas do not need residential property approval. 

This applies whether you are buying:

• An established house
• An established apartment
• A newly built property
• A vacant block for your future home
• An off-the-plan property

However, other rules can still affect your purchase.

State and territory governments set their own property taxes and duties.

Your lender also applies its own credit assessment rules.

Do I Need FIRB Approval?

Generally, no.

Permanent residents are specifically exempt from Australia’s foreign investment approval requirements for residential real estate.

The Australian Government lists holders of Australian permanent residency visas among those who do not require approval.

That means you can generally purchase an established home without seeking FIRB approval first.

What is FIRB?

The Foreign Investment Review Board (FIRB) is part of Australia’s foreign investment regulatory framework.

It provides policy guidance for foreign investment in Australia.

The Australian Taxation Office handles residential real estate applications and compliance under the foreign investment framework. 

However, the terminology can cause confusion.

You may still hear people refer to the process as a “FIRB application”.

For permanent residents buying residential property, the key point is the exemption.

Do permanent residents need FIRB approval for an established home?

Generally, no.

A permanent resident can generally buy an established residential property without foreign investment approval.

This includes a typical second-hand house or apartment.

The exemption is based on your residency status.

It is not based on whether the property is new or established.

Can I buy a new home?

Yes.

Permanent residents can generally purchase new residential property without foreign investment approval.

This can include:

• Newly completed homes
• New apartments
• Off-the-plan properties
• House and land packages
• Vacant residential land

However, different rules can apply when you purchase through a company, trust or other structure.

Get professional legal and tax advice before using a complex ownership structure.

Do permanent residents pay foreign buyer taxes?

This is where the rules become more complicated.

Federal foreign investment rules and state property taxes are separate systems.

Your permanent residency may exempt you from federal residential foreign investment approval.

However, each state and territory sets its own duty rules.

Western Australia

Western Australia provides a clear example.

RevenueWA states that a foreign individual does not include someone who holds an Australian permanent visa.

Therefore, a permanent resident is generally not treated as a foreign person for WA foreign transfer duty.

WA currently applies additional foreign transfer duty to foreign persons acquiring residential property.

The additional duty is 7% of the relevant dutiable value. 

Permanent residents are therefore treated differently from temporary visa holders under these WA rules.

New South Wales

NSW uses its own rules for surcharge purchaser duty.

Revenue NSW states that permanent residents can qualify for an exemption from the foreign purchaser surcharge when they meet the relevant residence requirements. 

The rules can depend on your circumstances and residence in Australia.

Therefore, check the current NSW requirements before signing a contract.

Victoria

Victoria also has its own foreign purchaser rules.

The State Revenue Office states that a foreign natural person does not include someone holding an Australian permanent residence visa.

Therefore, permanent residents generally fall outside Victoria’s definition of a foreign natural person.

The important distinction

Your FIRB status and your state duty status are not the same question.

Before buying, check:

• Your permanent residency status
• The state where you are buying
• The ownership structure
• Your spouse’s or co-buyer’s status
• Applicable transfer duty
• Any foreign purchaser surcharge
• First-home buyer concessions

This can prevent an expensive surprise after signing a contract.

Can permanent residents get a home loan in Australia?

Yes.

Permanent residents can apply for home loans in Australia.

However, permanent residency does not guarantee loan approval.

Lenders still assess your:

• Income
• Employment
• Living expenses
• Existing debts
• Credit history
• Deposit
• Property
• Loan amount
• Repayment capacity

APRA requires authorised deposit-taking institutions to assess new borrowers using a minimum 3 percentage point mortgage serviceability buffer.

This means your lender generally tests whether you could handle repayments above the actual loan rate.

Which lenders offer home loans to permanent residents?

Several major Australian lenders publicly state that permanent residents can apply for home loans.

However, there is no single lender that offers the “best” terms for every permanent resident.

Loan pricing and approval decisions depend on your circumstances.

The following lenders publicly confirm permanent resident eligibility under their published criteria.

ANZ

ANZ states that applicants must be at least 18 years old.

Applicants can be Australian citizens, New Zealand citizens or Australian permanent residents.

ANZ also requires primary income in Australian dollars for its published home loan application pathway.

CommBank

CommBank provides home lending information specifically for people moving to Australia.

It states that permanent and temporary residents can discuss their eligibility with a Home Lending Specialist. 

Its published lending documentation also recognises Australian permanent residents within its eligible customer groups. 

Westpac

Westpac states that applicants for its home loans can be Australian citizens or permanent residents.

Applicants must also meet its other requirements, including age and employment criteria. 

What about NAB?

NAB also publishes eligibility information recognising Australian permanent residents across its lending products.

However, eligibility for a specific home loan depends on the product and the lender’s credit criteria.

Always confirm the current requirements for the exact loan you are considering.

What should I compare?

Instead of focusing only on the advertised interest rate, compare:

• Eligibility requirements
• Maximum loan amount
• Deposit requirements
• Lenders Mortgage Insurance
• Interest rate
• Fees
• Offset availability
• Redraw conditions
• Extra repayment rules
• Fixed-rate restrictions
• Loan features
• Approval requirements

Moneysmart recommends comparing home loans carefully because small cost differences can add up over the loan term.

Does permanent residency affect borrowing capacity?

Your permanent residency status can make the lending process more straightforward.

However, it does not automatically increase your borrowing capacity.

Lenders focus heavily on your income, expenses and existing financial commitments.

They also consider the proposed loan repayments.

APRA’s 3 percentage point serviceability buffer adds another layer to the assessment.

Your employment history can matter

Recent migrants may have shorter Australian employment histories.

This does not automatically prevent you from getting a mortgage.

However, a lender may ask for additional evidence.

You may need to provide:

• Employment contracts
• Recent payslips
• Bank statements
• Tax documents
• Evidence of previous employment
• Visa documentation
• Identification documents

The exact requirements depend on the lender and your circumstances.

Overseas income can require extra assessment

Australian lenders can have different policies for overseas income.

Some lenders may accept certain foreign income sources.

Others may apply additional verification or currency adjustments.

Therefore, ask the lender how it treats your particular income before relying on a borrowing estimate.

How much deposit do I need for a home loan?

There is no single deposit requirement for every permanent resident.

Your required deposit depends on the lender, loan type and property.

A larger deposit can reduce the amount you need to borrow.

It can also reduce or eliminate Lenders Mortgage Insurance (LMI) in some circumstances.

Moneysmart notes that a 20% deposit can generally help buyers avoid LMI. 

However, you may be able to buy with a smaller deposit.

Some government schemes can also help eligible permanent residents.

Can I use the Australian Government 5% Deposit Scheme?

Yes, eligible permanent residents can access the Australian Government 5% Deposit Scheme.

The scheme can allow eligible first-home buyers to purchase with a minimum 5% deposit.

Eligible single parents and single legal guardians can potentially use a 2% deposit.

The scheme has additional eligibility requirements.

These include property price caps and owner-occupier requirements.

ANZ confirms that Australian permanent residents can qualify where all scheme conditions are satisfied. 

NAB also confirms permanent resident eligibility for the scheme. 

Therefore, permanent residency alone does not guarantee access.

You must satisfy the complete scheme criteria.

Can permanent residents access first-home buyer benefits?

Potentially, yes.

Permanent residents can qualify for some Australian Government and state-based first-home buyer programs.

However, each scheme has its own requirements.

These can include:

• Previous property ownership
• Property value
• Owner-occupier status
• Age
• Deposit
• Citizenship or residency
• State or territory location
• Property type

For example, the Australian Government 5% Deposit Scheme specifically includes Australian permanent residents.

State-based grants and concessions have separate rules.

Therefore, check your state revenue office before assuming you qualify.

Step By Step Guide To Buy A House As A Permanent Resident

The buying process is easier when you break it into clear stages.

Here is a practical step-by-step guide to buying a house in Australia as a permanent resident.

Step 1: Confirm your permanent residency status

Start by confirming your current visa status.

You should have evidence showing that you hold an Australian permanent visa.

Your lender may request this information during the application process.

Your conveyancer or solicitor may also need your identification details.

Keep your passport, visa information and Australian identification documents available.

Step 2: Check whether FIRB approval is required

Permanent residents are generally exempt from residential foreign investment approval.

The Australian Government specifically lists permanent residency visa holders among the exemptions. 

Still, check the rules if you are buying through:

• A company
• A trust
• A partnership
• A foreign entity
• A complex ownership structure

The ownership structure can change the legal and tax treatment.

Step 3: Check state and territory property taxes

Next, identify the duties that apply in your state.

This includes stamp duty, which is commonly called transfer duty.

Also check whether a foreign purchaser surcharge could apply.

Do this before making an offer.

Your residency status and ownership structure can affect the result.

Step 4: Review your finances

Before looking at properties, understand your financial position.

Calculate your:

• Savings
• Deposit
• Income
• Existing debts
• Credit card limits
• Personal loans
• Car loans
• Regular expenses
• Expected buying costs

Remember that your deposit is not your only upfront cost.

You may also need money for:

• Transfer duty
• Conveyancing
• Building inspections
• Pest inspections
• Valuation
• Loan costs
• Insurance
• Moving expenses

Step 5: Check your credit history

Review your credit report before applying for a mortgage.

Look for incorrect information or unpaid debts.

Also avoid taking on unnecessary new debts before applying.

Your credit history forms part of the lender’s overall assessment.

Step 6: Calculate your borrowing capacity

Next, estimate how much you may be able to borrow.

Your lender considers your income and financial commitments.

The lender also tests your ability to meet repayments under its serviceability assessment.

APRA’s current minimum serviceability buffer is 3 percentage points for APRA-regulated banks. 

Your personal borrowing capacity can therefore differ from online calculator estimates.

Treat calculator results as estimates rather than approvals.

Step 7: Compare lenders

Now compare lenders that accept applications from permanent residents.

Look beyond the headline rate.

Check the lender’s:

• Permanent residency policy
• Income requirements
• Deposit requirements
• LMI policy
• Loan features
• Fees
• Offset options
• Redraw rules
• Pre-approval process
• Documentation requirements

Published policies can change.

Always confirm the current criteria before submitting an application.

Step 8: Apply for pre-approval

Consider obtaining home loan pre-approval before seriously shopping.

Pre-approval can help establish your approximate price range.

It can also show that a lender has reviewed your financial position.

However, pre-approval is not the same as final loan approval.

Most pre-approvals commonly last three to six months.

The lender can still require a property valuation and further checks.

Step 9: Set your property budget

Use your pre-approved amount as a guide.

Do not treat the maximum amount as your target purchase price.

Leave room for:

• Interest rate changes
• Council rates
• Insurance
• Repairs
• Maintenance
• Utilities
• Other household expenses

A lower purchase price can provide more breathing room in your household budget.

Step 10: Start searching for a property

Now begin your property search.

Think about both your current needs and future plans.

Consider:

• Location
• Property type
• Land size
• Bedrooms
• Transport
• Schools
• Employment access
• Local amenities
• Future maintenance
• Resale considerations

Separate your essential features from your preferences.

This helps prevent emotional decisions during inspections.

Step 11: Conduct your due diligence

Once you find a suitable property, investigate it carefully.

Check the contract before signing.

Your solicitor or conveyancer can review the legal terms.

You should also consider professional building and pest inspections.

For apartments, also investigate:

• Owners corporation records
• Strata levies
• Special levies
• Building defects
• Sinking fund information
• By-laws
• Planned major works

The exact documents depend on your state or territory.

Step 12: Make an offer

You can make an offer through the selling agent.

Depending on the state, you may negotiate privately or bid at auction.

Understand the contract before committing.

An unconditional contract can create a binding obligation to purchase.

A conditional contract can include specific conditions.

Moneysmart recommends obtaining legal advice before signing property contracts.

Step 13: Finalise your home loan

Once your offer is accepted, contact your lender immediately.

The lender may need to:

• Value the property
• Confirm your income
• Review the contract
• Complete credit checks
• Confirm your deposit
• Complete final approval

Do not assume pre-approval guarantees unconditional approval.

The specific property still needs to satisfy the lender’s security requirements.

Step 14: Arrange conveyancing

Your solicitor or conveyancer handles the legal transfer process.

They can review the contract and coordinate settlement.

They may also check title information and outstanding issues.

Your conveyancer works with the lender and seller’s representative.

Step 15: Arrange insurance

Arrange suitable building insurance when required.

Your lender may require evidence of insurance before settlement.

For apartments, the owners corporation may already arrange building insurance.

However, you may still need contents insurance.

Check exactly what the building policy covers.

Step 16: Pay your deposit and buying costs

You will need enough funds to complete the purchase.

This can include:

• Your deposit
• Transfer duty
• Legal fees
• Inspection costs
• Registration fees
• Loan-related costs
• Other settlement expenses

Your conveyancer can provide a settlement statement showing the required amount.

Step 17: Complete settlement

Settlement is the final stage of the purchase.

Your conveyancer or solicitor coordinates the settlement with the lender.

Once settlement is completed, ownership transfers to you.

Your lender registers its mortgage against the property.

You can then receive the keys, subject to the contract terms.

What documents do permanent residents need for a home loan?

Lenders can request different documents.

However, you may commonly need:

• Passport
• Australian permanent residency evidence
• Australian driver’s licence
• Medicare card
• Payslips
• Employment contract
• Bank statements
• Tax returns
• Notice of assessment
• Details of existing debts
• Details of assets
• Evidence of deposit savings

Self-employed applicants may need additional financial documents.

The lender may also request documents relating to overseas assets or income.

Providing accurate information can help avoid unnecessary delays.

Can a permanent resident buy a house with an Australian citizen?

Yes.

A permanent resident can buy property jointly with an Australian citizen.

You should decide how ownership will be recorded.

Common ownership structures include:

• Joint tenants: Both owners hold the property together, with equal ownership and survivorship rights.
• Tenants in common: Each owner holds a separate share, which can be equal or different and can generally be left to beneficiaries.

The right structure depends on your circumstances.

Consider getting legal and tax advice before deciding.

The ownership structure can affect what happens if one owner dies, sells their share or separates.

Can I buy property with another permanent resident?

Yes.

Two permanent residents can generally buy residential property together.

Both applicants still need to satisfy the lender’s credit criteria.

The lender will assess the combined application.

This can include both applicants’:

• Income
• Expenses
• Debts
• Assets
• Credit histories
• Employment
• Deposit contribution

The lender then determines whether the proposed loan meets its lending requirements.

Can a permanent resident buy an established house?

Yes.

Permanent residents can generally purchase established property in Australia.

An established property is a property that has already been built and previously occupied.

Examples include:

• Second-hand houses
• Existing apartments
• Established townhouses
• Older villas

Because permanent residents are generally exempt from residential foreign investment approval, an established home can generally be purchased without FIRB approval. 

However, normal state property taxes and lending rules still apply.

Can I buy an investment property?

Generally, yes.

You can generally purchase residential investment property.

The lender will assess the application under its investment lending criteria.

Investment loans can have different assessment requirements from owner-occupier loans.

Rental income may also be assessed differently from employment income.

Your tax position can also differ from an owner-occupied property.

Consider professional tax advice before purchasing an investment property.

Can permanent residents buy vacant land?

Generally, yes.

Permanent residents can purchase vacant residential land.

However, the purchase can involve different costs and lending requirements.

For example, your lender may require a building contract before releasing construction funds.

Government schemes can also have specific rules for vacant land.

Check the scheme conditions before assuming you qualify.

Can permanent residents buy property through a company or trust?

This requires extra care.

The FIRB exemption applies specifically to holders of Australian permanent residency visas.

A company or trust may have a different legal status.

The ownership structure can also affect:

• Foreign investment rules
• Stamp duty
• Land tax
• Foreign purchaser duty
• Tax treatment
• Estate planning

Do not assume that your personal permanent residency automatically gives a company or trust the same treatment.

Obtain legal and tax advice before purchasing through an entity.

What happens if one buyer is a permanent resident and the other is not?

This situation needs careful checking.

The result can depend on:

• The other buyer’s visa
• The ownership structure
• The state or territory
• Whether the buyers are joint tenants
• Whether the property is residential
• Applicable state surcharge rules

The federal foreign investment rules contain specific exemptions for some joint purchases involving an Australian citizen or permanent resident spouse. 

State duty rules can differ.

Therefore, check both federal and state requirements before signing.

Home loan checklist

Before applying, work through this checklist.

Residency

• Confirm your permanent residency status.
• Keep your visa evidence available.
• Check whether your co-buyer has permanent residency.
• Confirm the ownership structure.

Finances

• Calculate your deposit.
• Budget for transfer duty.
• Review your credit history.
• List your existing debts.
• Calculate your regular expenses.
• Estimate your borrowing capacity.

Home loan

• Compare multiple lenders.
• Check permanent resident eligibility.
• Compare loan features.
• Check LMI requirements.
• Consider pre-approval.
• Confirm the lender’s documentation requirements.

Property

• Set a realistic purchase budget.
• Research suitable suburbs.
• Inspect properties.
• Review the contract.
• Arrange building and pest inspections.
• Check strata or owners corporation records.

Settlement

• Appoint a solicitor or conveyancer.
• Confirm your insurance requirements.
• Arrange your settlement funds.
• Complete final loan approval.
• Confirm the settlement date.
• Prepare for key collection.

Common mistakes permanent residents should avoid

Buying property involves several decisions that can become expensive when rushed.

Assuming FIRB and state taxes are the same. A FIRB exemption does not answer every state tax question. Always check the rules in the state where you are buying.

Treating pre-approval as final approval. Pre-approval does not guarantee that your lender will approve a particular property. The lender can still assess the property and complete further checks.

Using your maximum borrowing capacity as your budget. Your lender’s maximum amount may be higher than your comfortable budget. Consider your ongoing household costs before choosing a purchase price.

Forgetting buying costs. Your deposit is only one part of the upfront cost. Budget for duty, legal costs, inspections and other expenses.

Assuming every lender treats permanent residents identically. Lenders have their own credit policies. Two lenders can assess the same application differently. Compare the actual lending criteria rather than relying on general assumptions.

Signing before checking the contract. Property contracts can create significant legal obligations. Have the contract reviewed before signing where possible.

Conclusion

Buying a house in Australia as a permanent resident is generally possible without FIRB approval for residential property.

The Australian Government specifically exempts Australian permanent residency visa holders from residential foreign investment approval. 

However, buying property involves more than federal foreign investment rules.

You also need to consider state transfer duty, lender policies and government scheme eligibility.

Major lenders such as ANZ, CommBank and Westpac publicly accept applications from permanent residents. 

Your income, deposit, debts and expenses will still determine how much you can borrow.

APRA’s current 3 percentage point serviceability buffer also forms part of lending assessments by APRA-regulated banks. 

The safest approach is to confirm your residency status, understand the applicable taxes and compare lending criteria.

With those steps completed, you can approach the Australian property market with a much clearer understanding of the process.

Frequently Asked Questions