In short: A new migrant can be loan-ready within about twelve months of arriving in Melbourne by building an Australian credit file early, holding a deposit in an Australian account for at least three months, documenting any overseas gift with a paper trail, timing the purchase around permanent residency where possible, and choosing lenders whose policies suit newer arrivals. Permanent residents and citizens unlock the First Home Guarantee; temporary residents can still buy but face FIRB approval and 8% extra duty in Victoria.
Key takeaways
- Australian lenders can only see Australian credit history; start building yours in month one.
- Genuine savings means around 5% of the price held in your own account for three months, so the savings clock matters more than the total.
- Gifts from family overseas are accepted by most lenders with a gift letter and evidence of the transfer through formal channels.
- Permanent residency changes almost everything: scheme eligibility, foreign duty and lender appetite.
- A broker who speaks your language shortens the process and catches document problems before the lender does.
Most of the families who walk into our Mickleham office arrived in Australia within the last decade, and many within the last two years. The path from a first Australian payslip to a front door in Craigieburn or Wollert is well worn, and it goes faster with a plan. Gorakh Timilsina made the journey himself, and this is the twelve-month version he walks clients through, in English, Nepali or Hindi.
Month by month
| Month | Focus | Actions |
|---|---|---|
| 1 | Foundations | Open an Australian bank account; apply for a tax file number; start a phone or utility account in your name |
| 2 | Credit file | Take a small credit product you can manage, such as a low-limit credit card, and pay it in full every month |
| 3 | Income record | Settle into the job or contract that will support the loan; keep every payslip |
| 4 | Savings clock starts | Move your deposit into one Australian account and leave it there; this is day one of the three-month genuine savings period |
| 5 | Overseas funds | Arrange any family gift through a bank transfer with the sender's name visible; get the gift letter signed |
| 6 | Visa and PR check | Confirm your PR timeline; if a grant is close, plan the purchase after it |
| 7 | Scheme eligibility | Check the First Home Guarantee, Help to Buy, the Victorian grant and duty concessions against your status |
| 8 | Broker meeting | Bring payslips, statements, visa documents and the gift letter; get a realistic borrowing figure |
| 9 | Pre-approval | Lodge with the lender whose policy fits; receive written pre-approval |
| 10 | Search | Inspect within your approved range; engage a conveyancer for the Section 32 review |
| 11 | Offer and contract | Private sale with cooling-off and a subject-to-finance clause where possible |
| 12 | Settlement | Formal approval, insurance, final inspection, keys |
Our home loans for new migrants guide expands on each stage.
Your credit file starts at zero
Credit histories do not travel. A perfect record in Kathmandu, Chennai or Colombo is invisible to an Australian lender.
The fix is simple: one modest credit product used responsibly for six months or more. Our credit score guide explains how the file is read.
Savings evidence and the three-month rule
Most lenders want genuine savings of around 5% of the purchase price held for three months. What counts:
- Money accumulated in your Australian account over the period
- Money transferred in a lump sum and then held for three months
What generally does not count without more evidence: cash, money that appears in the account the week before the application, and funds still sitting overseas. Read our genuine savings guide and use the deposit savings calculator to plan the timeline.
Gifts from overseas
A gift from parents or relatives overseas is common and accepted, provided the lender can trace it. Bring:
- A signed gift letter stating the amount, the relationship and that the money is non-refundable.
- Evidence of the transfer through a bank or a licensed remitter, showing the sender's name.
- Your account statement showing the funds arriving.
Permanent residency timing
Your visa status drives what you can buy and what it costs.
| Temporary resident | Permanent resident or citizen | |
|---|---|---|
| FIRB approval | Required, with a fee, usually limited to a new dwelling or one established home to live in | Not required |
| Foreign purchaser additional duty (VIC) | 8% of the price on top of normal duty | Not payable |
| First Home Guarantee | Not eligible | Eligible: 5% deposit, no LMI, no income cap |
| Help to Buy | Not eligible | Eligible within income caps |
| First Home Owner Grant and duty concessions | Residency conditions apply; check with the SRO | Eligible if other conditions are met |
| Lender appetite | Fewer lenders, often lower LVR | Full market |
On a $650,000 house, the 8% foreign purchaser duty alone is $52,000. If your PR grant is months away, waiting is often worth tens of thousands of dollars. If it is years away, a temporary-resident purchase can still make sense; our buying as a temporary resident guide and FIRB approval page explain the process, and the State Revenue Office publishes the duty rules. The First Home Guarantee's eligibility criteria are on Housing Australia's site.
Choosing lenders that suit new arrivals
Lender policies differ widely on:
- Time in current job. Some want twelve months; others accept three months past probation, or a signed contract in the same field you worked in overseas.
- Overseas income history. A few lenders will consider a continuous employment record that spans your move.
- Visa subclass. Policies vary by visa type and time remaining; our visa holder home loans page lists what we commonly see.
Worked example: a couple arriving on skilled visas
For illustration, a couple arrives in February with $40,000 saved. Both find work by April; PR is granted in October. In May their parents send $60,000 through a bank transfer with a gift letter. They hold the combined $100,000 in one account from May, satisfying genuine savings by August. After PR they use the First Home Guarantee to buy a $700,000 new townhouse in Kalkallo with a 5% deposit of $35,000, no LMI, no foreign duty, and the $10,000 First Home Owner Grant on a new home. Their loan is $665,000, which for illustration at 6.00% p.a. over 30 years costs $3,987 a month. The remaining cash covers costs and a buffer.
Nepali-speaking help
A large part of our client base is the Nepali and South Asian community in Melbourne's north, and many first conversations happen in Nepali. Our Nepali mortgage broker page explains how we work, and our Nepali community home buying guide covers cultural questions that come up often.
Frequently asked questions
Can I get a home loan with no Australian credit history at all?
Some lenders will lend to an applicant with an empty file if income, savings and the rest of the application are strong, but many will not, and those that do may restrict LVR. Six months of a small, well-managed credit product removes the problem. Start it in your first weeks, not when you find a house.
Do I need to wait for permanent residency before buying?
No, but it usually pays to. Temporary residents need FIRB approval, pay 8% additional duty in Victoria, and cannot use the First Home Guarantee or Help to Buy. If your PR is expected within a year, the savings from waiting are typically far larger than any price growth in the meantime. If PR is uncertain or distant, a temporary-resident purchase can still be the right move.
Is money from my parents overseas treated as genuine savings?
Not automatically. A gift is accepted as part of your deposit with a gift letter and transfer evidence, but genuine savings usually requires the funds to sit in your account for three months. Transfer the gift early so it satisfies both tests by the time you apply.
Talk to GNT Finance
Whether you arrived last month or five years ago, Gorakh Timilsina will map your twelve months from where you are today, in English, Nepali or Hindi. There is no cost to you for our home-loan service in most cases. Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.