By Maria Gil and Cameron Thomson
Fact Checked
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- How to buy a property in Australia?
- How to buy a property in Australia as a foreigner?
- Fees for foreigners buying property in Australia
- What if you buy a property without FIRB permission?
- Can temporary residents buy property in Australia?
- Who is exempt from seeking FIRB approval?
- Can I get Australian home loans for my property purchase?
How to buy a property in Australia?
Are you looking to join the long list of foreign buyers searching for a slice of the Australian dream? You might be wondering, are you even allowed to buy property in Australia as a foreign buyer?
Typically you need to be a permanent resident or citizen to buy property in Australia and if you need to fund it with a home loan, many of the available home loans also require you to meet the same criteria. But foreigners can still buy. However, the property has to be a new dwelling, vacant land, or off-the-plan property and you need government approval to get it.
Let’s take a closer look.
How to buy a property in Australia as a foreigner?
Firstly, as a foreigner, you’ll need to submit an application to the Foreign Investment Review Board (FIRB), which assesses non-Australian citizens who want to buy or invest in Australian property.
If you get approved for an investment property, there are a couple of things to keep in mind:
- It must be a new property or vacant land to build a new property.
- The investment property cannot be an established dwelling.
If you do buy an established dwelling, you’re required to live in it and then sell it once you no longer live there.
Fees for foreigners buying property in Australia
The FIRB charges an application fee, an amount that depends on the value of the property you plan on buying. So this figure can vary a bit depending on the value of the property. You need to double check this before purchasing - the FIRB has some guidance on it.
The current fees from 1 July 2023 to 30 June 2024 are:
| Amount | Fee |
| Less than $75,000 | $4,200 |
| $1 million or less | $14,100 |
| $2 million or less | $28,200 |
| $3 million or less | $56,400 |
| $4 million or less | $84,600 |
| $5 million or less | $112,800 |
*Source: Australian Taxation Office website
There is also the Foreign Citizen Stamp Duty you’ll have to pay on top of all the usual house-buying fees. This particular stamp duty is an 8% surcharge in NSW, for example, that goes on top of theusual stamp duty (also called transfer duty) that all property buyers are required to pay when they purchase a property. Apart from the Northern Territory, each state and territory will charge additional stamp duty for foreigners.
| State | Additional surcharge |
| New South Wales | 8% stamp duty surcharge + 2% land tax |
| Victoria | 8% foreign purchase additional duty |
| Queensland | 7% stamp duty surcharge |
| Western Australia | 7% foreign citizen stamp duty surcharge |
| South Australia | 7% stamp duty surcharge |
| Tasmania | 8% Foreign Investor Duty Surcharge |
| Australian Capital Territory | 0.75% land tax surcharge |
Aside from those extra bits, the process of buying a home and applying for a home loan is pretty much the same as if you were a local.
What if you buy a property without FIRB permission?
There are serious consequences if you are found in breach of FIRB rules. If you’re a non-resident or temporary resident who purchases a property without FIRB approval, you could face fines depending on the number of penalty units that your breach constitutes. You could also face prison time, depending on your breach action.
If you’re found in breach of FIRB rules, how much would you end up paying? Every penalty unit is worth $222 and each breach action constitutes a differing number of penalty units. For instance, you may receive 100 penalty units, meaning that you need to pay $22,200.
Can temporary residents buy property in Australia?
If you are on a temporary visa, such as a partnership visa, 457 work visa, temporary skills shortage visa or student visa, you’ll still need approval from the FIRB to purchase property in Australia. This is because you are still classified as a foreigner when it comes to buying property and must follow the same criteria as above.
Who is exempt from seeking FIRB approval?
There are a few instances where you’ll find exemptions from FIRB approval. If you’re an Australian citizen, you can still purchase property if you live outside of the country. Permanent residents are also exempt from FIRB approval.
If you’re a New Zealand citizen, you won’t have to worry about all the extra rules other foreigners have to deal with as Kiwi nationals tend to be given the same rights as Aussie home buyers when buying Australian property. Although, if you’re purchasing property from outside of the country, you may need to pay foreign citizen stamp duty.
Also, if you’re purchasing a house as a joint tenant with a spouse who is an Australian or New Zealand citizen, you won’t have to look for FIRB approval.
Can I get Australian home loans for my property purchase?
Yes, but it’s not that straightforward. Many Australian lenders have strict rules that you must be an Aussie or a permanent resident to qualify for a home loan. And those who do lend to foreigners tend to impose tighter lending criteria like:
- Paying a higher interest rate
- Needing a larger deposit (around 30-40%)
- Imposing restrictions on foreign income used to pay the loan
- Having to obtain approval from the FIRB.
Don’t let this deter you though! There are plenty of options out there such as internationally recognised banks that operate in Australia that offer home loans like HSBC and Citibank.
If you are looking to buy a new home in Australia check out our home loan guides.
FAQs
Who has the best home loans in Australia?
Every year Mozo announces the Mozo Experts Choice Home Loans Awards to help borrowers discover worthwhile home loan options when looking to buy property.
Keep in mind that only some of the winners will offer foreigners home loans. Be sure to do your own research before applying.
Is buying property in Australia expensive?
Like anywhere else in the world, the cost of property depends on several factors, such as location, size and type, to name a few. It’s essential to research and set a budget before buying a house Down Under.
Home loan comparisons on Mozo - last updated 20 December 2023
Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
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Home Variable Rate
Owner Occupier, Principal & Interest, Refinance Only
variable rate
comparison rate
Initial monthly repayment
6.15% p.a.
6.15% p.a.
Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
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Home Variable Rate
Enjoy a competitive variable interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply) Mozo Experts Choice award winner.
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Featured Product
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Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
variable rate
comparison rate
Initial monthly repayment
5.99% p.a.
See AlsoWhat is the average rent in Australia in 2023?Australia has fewer million-dollar homes than a year ago as real estate values fallAustralian Housing Crisis: The High Price We’re PayingResidential Property Investment Statistics and Trends5.90% p.a.
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
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Unloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
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- 5.99% p.a.
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- 5.90% p.a.
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Mozo experts choice awards won:
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For more information about these awards go to the link at the bottom of this table.
Variable Home Loan 90
Principal and Interest, LVR <90%
variable rate
comparison rate
Initial monthly repayment
6.04% p.a.
6.06% p.a.
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.
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Variable Home Loan 90
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.
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- 6.04% p.a.
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- 6.06% p.a.
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- Upfront fees
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- Maximum loan to value ratio
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Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR 70-80%
variable rate
comparison rate
Initial monthly repayment
6.09% p.a.
6.09% p.a.
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
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Discounted Home Value Loan
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
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- Upfront fees
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Bare Essentials Special Offer
Owner Occupier, Principal & Interest
variable rate
comparison rate
Initial monthly repayment
5.79% p.a.
5.89% p.a.
Competitive variable rate. Redraw facility available. Ability to make additional repayments. Split loan option available (T&Cs apply). Weekly, fortnightly or monthly repayment choice. For loan amounts up to $5 million.Special rate only available for applications received by 31 December 2023 and funded by 28 February 2023. New money only.
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Bare Essentials Special Offer
Competitive variable rate. Redraw facility available. Ability to make additional repayments. Split loan option available (T&Cs apply). Weekly, fortnightly or monthly repayment choice. For loan amounts up to $5 million.Special rate only available for applications received by 31 December 2023 and funded by 28 February 2023. New money only.
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- 5.79% p.a.
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- 5.89% p.a.
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- Upfront fees
- $1,290
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- Maximum loan to value ratio
- 95.00%
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Elevate
Owner Occupier, Principal & Interest, <80% LVR
variable rate
comparison rate
Initial monthly repayment
6.09% p.a.
6.20% p.a.
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
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Elevate
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
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- 6.20% p.a.
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- 6.09% p.a.
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- 6.20% p.a.
- Upfront fees
- $498
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- $325.00
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- Optional extra - $10 per month
- Maximum loan to value ratio
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- $5,000,000
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Solar Home Loan
Investment, Principal & Interest, LVR <90%
variable rate
comparison rate
Initial monthly repayment
6.19% p.a.variable for 60 months and then 6.73% p.a.
6.58% p.a.
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
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Solar Home Loan
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
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- 6.19% p.a.variable for 60 months and then 6.73% p.a.
- comparison rate
- 6.58% p.a.
- variable rate
- 6.19% p.a.variable for 60 months and then 6.73% p.a.
- comparison rate
- 6.58% p.a.
- Upfront fees
- $530
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- $0.00
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- $300.00
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Simplicity PLUS Special Offer
Owner Occupier, Principal & Interest, LVR <80%
variable rate
comparison rate
Initial monthly repayment
6.64% p.a.
6.64% p.a.
Refinance your eligible home loan of $250,000+ and 80% or less LVR and get $2,000 cashback (T&Cs apply) with ANZ’s Simplicity PLUS Home Loan Special Offer. Get discounted rates upfront on eligible loans (T&Cs apply). $0 set up or ongoing fees to pay. Verify your ID and sign documents online for super simple home loan refinancing.
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Simplicity PLUS Special Offer
Refinance your eligible home loan of $250,000+ and 80% or less LVR and get $2,000 cashback (T&Cs apply) with ANZ’s Simplicity PLUS Home Loan Special Offer. Get discounted rates upfront on eligible loans (T&Cs apply). $0 set up or ongoing fees to pay. Verify your ID and sign documents online for super simple home loan refinancing.
- variable rate
- 6.64% p.a.
- comparison rate
- 6.64% p.a.
- variable rate
- 6.64% p.a.
- comparison rate
- 6.64% p.a.
- Upfront fees
- $160
- Ongoing fees
- $0.00
- Discharge Fee
- $160.00
- Extra repayments
- yes - free
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- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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- $3,000 cashback for eligible First Home Buyers, $2,000 cashback when you refinance loans of $250k+, apply from 1 Dec 2022, settle within 180 days.
Read our Mozo Review to learn more about the ANZ Simplicity PLUS Special Offer
Interested in an ANZ home loan? Lendi specialists can help you refinance your home loan.
You can this discuss this option and compare against 25+ lenders with our trusted partner Lendi.
Answer a few questions online about your current loan and Lendi will connect you with one of their experienced home loan specialists, who can guide you every step of the way.
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circ*mstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
Alright, let me dive into this. The article seems quite comprehensive, discussing the intricacies of foreigners buying property in Australia. Let's break it down:
Foreign Investment Review Board (FIRB) Approval: As a foreigner looking to buy property in Australia, the first step is to submit an application to the FIRB. They assess non-Australian citizens wanting to invest in Australian property. Approval is necessary, and it comes with conditions: the property must be a new dwelling, vacant land, or an off-the-plan property. Buying an established dwelling as a foreigner requires living in it and selling it once you no longer reside there.
Fees for Foreigners Buying Property: The FIRB charges an application fee based on the property value. Additionally, there's a Foreign Citizen Stamp Duty ranging from 7% to 8%, depending on the state or territory, added to the standard stamp duty.
Consequences of Buying Without FIRB Permission: Buying property without FIRB approval can lead to serious consequences, including fines and potential prison time. The penalty units system is in place, with each unit costing $222. So, the financial consequences can be substantial.
Temporary Residents' Eligibility: Temporary residents, such as those on partnership visas or work visas, still need FIRB approval to purchase property in Australia. They are considered foreigners in property transactions and must adhere to the same criteria.
Exemptions from FIRB Approval: Exemptions include Australian citizens living abroad, permanent residents, and New Zealand citizens who usually enjoy similar property-buying rights as Australian citizens. Joint property purchases with an Australian or New Zealand citizen spouse also exempt individuals from FIRB approval.
Australian Home Loans for Foreigners: While Australian lenders generally have strict criteria favoring citizens or permanent residents, there are options for foreigners. Some internationally recognized banks operating in Australia, like HSBC and Citibank, offer home loans to foreign buyers. However, these may come with higher interest rates, larger deposit requirements (around 30-40%), and restrictions on foreign income used for loan payments.
The article concludes with a mention of Mozo's Experts Choice Home Loans Awards, emphasizing the importance of research before applying.
I hope this breakdown provides a clear understanding of the concepts discussed in the article!
