In short: Permanent residents can get a home loan on the same terms as Australian citizens with most lenders: up to 95% of the property value, access to the First Home Guarantee, the Victorian First Home Owner Grant and the first-home stamp duty exemption, and no FIRB approval. The practical hurdles are a short Australian credit history, a new job and proving where an overseas deposit came from.
If you arrived in Australia in the last few years and now hold permanent residency or citizenship, the door to home ownership is more open than many new migrants expect. GNT Finance helps skilled migrants from Nepal, India, Sri Lanka, the Philippines and elsewhere buy their first Australian home every month, mostly in Melbourne's northern suburbs. This guide explains how lenders treat PR holders, what government support you can claim, the parts of your application that need extra care, and a Craigieburn example with the actual dollars.
How lenders treat permanent residents
For almost every Australian lender, a permanent resident living and working in Australia is a domestic borrower. The visa itself is not a risk factor. That means:
- Lending up to 95% of the purchase price with lenders mortgage insurance, or 90% and below with lower LMI.
- Access to the same rates, offset accounts and package discounts as citizens.
- No FIRB application, no FIRB fee and no foreign purchaser surcharge on stamp duty.
- Eligibility for the federal and Victorian first-home schemes.
Temporary visa holders face a very different set of rules, covered in buying property as a temporary resident and on our home loans for visa holders page. The table below shows the gap.
| Residency status | FIRB approval needed | Foreign purchaser additional duty (VIC, 8%) | First Home Guarantee eligible | Victorian FHOG eligible | Typical maximum LVR |
|---|---|---|---|---|---|
| Australian citizen | No | No | Yes | Yes | 95% |
| Permanent resident | No | No | Yes | Yes | 95% |
| Temporary visa (482, 491, 485, student) | Yes | Yes | No | No, unless a co-buyer is a citizen or PR | 80%, some lenders 90% |
The foreign purchaser additional duty page sets out how the 8% surcharge works for those who are caught by it. On a $620,000 home it is $49,600, which is the strongest reason many temporary residents wait for PR before buying.
First-home support a PR can claim in Victoria
Permanent residents qualify for every first-home concession available to citizens, provided they meet the same conditions: living in the home, not having owned property in Australia before, and buying within the price caps.
| Scheme | What you get | Key limits |
|---|---|---|
| Victorian first-home stamp duty exemption | No land transfer duty | Price up to $600,000; live in it for 12 months |
| Victorian first-home duty concession | Duty reduced on a sliding scale | Price $600,001 to $750,000 |
| First Home Owner Grant (FHOG) | $10,000 cash | New home never lived in, valued up to $750,000; live in it 12 months |
| First Home Guarantee | Buy with 5% deposit and no LMI | Owner-occupier, citizen or PR, price up to $950,000 in Melbourne and Geelong ($650,000 elsewhere in Victoria) |
| Help to Buy | Government equity of up to 30% to 40% | Income caps of $100,000 single or $160,000 couple; VIC price cap $950,000 at the time of writing |
The First Home Guarantee is run by Housing Australia; see housingaustralia.gov.au for the current terms. Our First Home Guarantee guide explains how the places work and which lenders offer them, and the eligibility calculator checks your position in a minute. For the full Victorian picture, start with the first home buyer guide for Victoria.
The hurdles new migrants actually face
The visa is fine. These are the parts of a new migrant's application that need work.
A thin credit file
Australian lenders check your Australian credit report. If you have been here 18 months and have only a mobile plan in your name, the bureau has little to say about you. That is not a bad score, it is an absent one, and lenders read it differently. Some accept a thin file with strong savings and a stable job; others want to see at least one credit product managed well for 6 to 12 months. See credit score and home loans for how the report is built.
Probation in a new job
Most lenders want you past probation, but plenty will lend during probation if you are in the same industry as your previous role, on a permanent contract, and the rest of the file is strong. A nurse who worked in Kathmandu for six years and started at a Melbourne hospital three months ago is a stronger case than a career changer. Contract and casual income usually needs 6 to 12 months of history.
Overseas income and assets
Income earned overseas before you arrived does not count for serviceability. Ongoing foreign income (rent from a property in Chennai, for example) is either ignored or shaded by 20% to 40% and converted at a conservative exchange rate, and only a handful of lenders accept it at all. Overseas property can be listed as an asset but rarely helps the assessment.
Genuine savings and the paper trail
Lenders generally want at least 5% of the price as genuine savings held for 3 months. Savings brought from overseas can count once they are in an Australian account and have sat there for the qualifying period. The bigger issue is the anti-money-laundering paper trail: every large transfer into your account needs a source. Keep the overseas bank statements showing the funds accumulating, the remittance receipts, and any sale contract if the money came from selling property or a business at home. The genuine savings guide covers what lenders accept.
Gifted deposits from family overseas
A gift from parents in Pokhara or Hyderabad is common and acceptable. The lender will want a signed gift letter or statutory declaration confirming it is non-repayable, evidence of the transfer, and often the giver's identity. Many lenders still want 5% of your own genuine savings alongside the gift unless you are using the First Home Guarantee or paying rent that can be treated as savings.
Worked example: a Nepali couple in Craigieburn
Sunita and Bikash arrived from Nepal on a skilled visa and were granted permanent residency 18 months ago. Sunita is a registered nurse at a northern suburbs hospital; Bikash is a permanent employee at a logistics firm in Somerton. Combined income is $158,000. They have saved $48,000 in an Australian account over two years and want to buy an established three-bedroom house in Craigieburn for $620,000.
| Item | Figure |
|---|---|
| Purchase price | $620,000 |
| Deposit under the First Home Guarantee (5%) | $31,000 |
| Loan amount | $589,000 |
| Lenders mortgage insurance | Nil (government guarantee) |
| Land transfer duty at the general rate | $32,270 |
| Duty after the first-home sliding concession | roughly $4,300 |
| FHOG | Not available (established home) |
| Monthly repayment, 30 years at 6.00% p.a. for illustration | about $3,530 |
Without the guarantee, a 5% deposit loan would have carried an LMI premium in the tens of thousands. Without PR, the same purchase would have attracted $49,600 of foreign purchaser duty and needed FIRB approval, and the established house would not have been available to them at all under the current federal restrictions. The stamp duty calculator gives the exact concession figure for any price.
Their $17,000 left over covered conveyancing, building and pest inspection, moving costs and a buffer. Our Craigieburn mortgage broker page covers the local market they bought into.
Building an Australian credit file from scratch
You do not need years of history, but you do need something. In rough order of usefulness:
- Open an Australian bank account the week you arrive and have your salary paid into it.
- Put your mobile plan, electricity and internet in your own name and pay on time.
- Get one credit card with a low limit ($1,000 to $2,000), use it for groceries and pay the full balance every month. Ask the lender to close it or reduce the limit before applying if it hurts serviceability.
- Avoid buy-now-pay-later accounts and multiple credit applications; each enquiry sits on your file for five years.
- Pull your free credit report from Equifax, Experian or illion after 12 months and check the details are correct.
- If you rent, keep the ledger; some lenders accept 12 months of on-time rent in place of genuine savings.
Checklist for a new migrant applying for a home loan
- PR grant notice or citizenship certificate, plus passport.
- Australian tax file number and your first Australian tax return or income statement.
- Employment contract, three recent payslips and a letter confirming probation status if under 12 months.
- Six months of Australian bank statements, with every large deposit explained.
- Overseas bank statements and remittance receipts for any funds transferred to Australia.
- Gift letter or statutory declaration for any family contribution, with the giver's ID.
- Your Australian credit report, checked for errors.
- Rental ledger if you plan to rely on rent as savings.
- Pre-approval before you start seriously inspecting.
Common mistakes
Large unexplained transfers. A $40,000 arrival in your account with no source document is the fastest way to a decline. Assemble the trail before you apply.
Cash deposits. Money deposited over the counter in notes cannot be traced and is usually excluded from genuine savings. Deposit through electronic transfer from an account in your name.
Changing jobs mid-application. Even a promotion resets probation and can stall approval. Wait until settlement.
Using a relative's account. Savings held in a cousin's account are the cousin's savings. Keep your money in your own name from day one.
Assuming overseas income will count. Budget on Australian income only and treat any foreign rent as a bonus.
Waiting too long to check the credit file. Errors, a forgotten phone bill or a mistaken default take weeks to correct.
Frequently asked questions
Can a permanent resident get a home loan in Australia?
Yes. Permanent residents are treated as domestic borrowers by most Australian lenders and can borrow up to 95% of the property value with lenders mortgage insurance, or 95% without LMI under the First Home Guarantee. There is no FIRB requirement and no foreign purchaser surcharge. Lenders assess your Australian income, savings and credit history in the same way they assess a citizen's.
How long after getting PR can I buy a house?
There is no waiting period. You can apply for a loan the day your permanent residency is granted, and some lenders will lend to you while the PR application is still pending if you hold a bridging visa with work rights. What matters is the rest of the file: stable Australian income, savings with a clear source, and a credit report with no black marks. Most clients buy within 6 to 24 months of PR.
Can new migrants use the First Home Guarantee?
Yes, if you are a permanent resident or citizen, at least 18, will live in the home, and have not owned property in Australia in the last 10 years. Property you own overseas does not disqualify you. Since October 2025 there are no income caps and unlimited places, with a price cap of $950,000 in Melbourne and Geelong. You need a 5% deposit and pay no lenders mortgage insurance.
Do I need a credit history to get a home loan?
Not necessarily, but it helps. Lenders check your Australian credit report, and a file with no history is assessed on the rest of your application: savings, employment and rent paid on time. Some lenders are comfortable with a thin file; others want to see a credit card or small loan managed well for 6 to 12 months. Building a modest record early makes the application smoother.
Can I use money from overseas as my deposit?
Yes. Savings transferred from Nepal, India or anywhere else can form your deposit once they are in an Australian account in your name. To count as genuine savings they usually need to have been held for 3 months. Bring the overseas statements showing how the money built up and the transfer receipts, because lenders must verify the source under anti-money-laundering rules.
Do permanent residents pay foreign buyer stamp duty in Victoria?
No. The 8% foreign purchaser additional duty applies to foreign natural persons, foreign companies and foreign trusts. A permanent resident, like an Australian citizen, is not a foreign purchaser for this purpose and pays only the standard land transfer duty, less any first-home exemption or concession. If you buy jointly with a partner on a temporary visa, the surcharge may apply to their share, so check with the State Revenue Office.
Talk to GNT Finance
Gorakh Timilsina is Nepali-Australian and started his own career here, first as a broker assistant and then as a senior credit officer assessing applications for a lender, so he knows exactly which documents make a new migrant's file approve smoothly. GNT Finance works in English, Nepali and Hindi, and there is no cost to you for our home-loan service in most cases. Read more on our Nepali mortgage broker Melbourne page, then 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.