In short: Subclass 186 and 187 are permanent visas. From the grant date you are not a foreign person, so there is no foreign investment approval, no application fee, no foreign purchaser duty surcharge, and established homes are open to you. Lenders will consider up to 95% of the property value, and the 5% Deposit Scheme becomes available.
Most people who reach a 186 have spent years on a 482, budgeting around a surcharge and a restricted list of properties. The grant does not just change your migration status; it changes what you can buy and what it costs by a six-figure margin. The decision worth getting right is whether to buy in the months before the grant or the months after.
What the visas are
The Employer Nomination Scheme visa (subclass 186) lets skilled workers nominated by their employer live and work in Australia permanently. Its Temporary Residence Transition stream is the usual route for a 482 holder who has worked for the sponsoring employer for a qualifying period, two years at the time of writing. The Direct Entry and Labour Agreement streams are the other paths.
The Regional Sponsored Migration Scheme visa (subclass 187) is the regional equivalent and has been closed to most new applications for several years, but it remains a permanent visa in the hands of everyone who holds one. If you hold a 187, you are a permanent resident and this page applies to you in full.
What changes on the grant date
| Question | On the 482, before the grant | On the 186 or 187 |
|---|---|---|
| Migration status | Temporary | Permanent |
| Foreign person under foreign investment law | Yes | No |
| Foreign investment approval needed | Yes, before an unconditional contract | No |
| Foreign investment application fee | $15,600 for a property up to $1m | Nil |
| Can buy an established dwelling | No, while the ban runs to 30 June 2029 | Yes |
| Victorian foreign purchaser additional duty | 8% of the dutiable value | Nil |
| 5% Deposit Scheme | Not eligible | Eligible, subject to the scheme's criteria |
| Victorian First Home Owner Grant | No | Yes, on a new home up to $750,000 |
| Victorian first home buyer duty exemption | No | Yes, full to $600,000, concession to $750,000 |
| Typical maximum LVR | Commonly 80% | Up to 95% |
The date that counts is the grant date. Revenue offices generally test your status at the contract date, so a contract signed the week before your grant is assessed as a temporary resident's purchase. If your nomination is close to a decision, tell us and we will time the offer around it rather than around the auction calendar.
The gap between visas
Many 482 holders spend weeks or months on a bridging visa between the 482 expiring and the 186 being decided. That is a distinct lending position, and not a comfortable one: you are still a foreign person for property purposes, and lenders read a bridging visa far more cautiously than a substantive visa. Bridging visa home loans sets out what is realistic during that window. In most cases the sensible plan is to have the pre-approval work done before the gap and the purchase done after the grant.
Worked example: buy on the 482 or wait for the 186
Rahul is on a 482, his employer's 186 nomination is lodged, and a decision is expected within about eight months. He earns $132,000 and has saved $130,000. He wants a $760,000 four-bedroom house in Craigieburn. It is an established home.
Victorian land transfer duty on $760,000 is $2,870 plus 6% of the excess over $130,000: $2,870 + $37,800 = $40,670.
Option A, buy now on the 482. He cannot buy this house at all: it is established, and foreign persons are banned from established dwellings until 30 June 2029. The nearest equivalent is a new $760,000 townhouse in the same corridor.
| Line | Amount |
|---|---|
| Purchase price (new townhouse) | $760,000 |
| Deposit at 80% LVR | $152,000 |
| Loan | $608,000 |
| Land transfer duty | $40,670 |
| Foreign purchaser additional duty at 8% | $60,800 |
| Foreign investment application fee | $15,600 |
| Conveyancing, inspections, adjustments | about $3,000 |
| Cash needed | $272,070 |
Option B, wait eight months and buy the established house on the 186.
| Line | Amount |
|---|---|
| Purchase price (established house) | $760,000 |
| Deposit at 90% LVR | $76,000 |
| Loan | $684,000, plus a mortgage insurance premium |
| Land transfer duty | $40,670 |
| Foreign purchaser additional duty | Nil |
| Foreign investment application fee | Nil |
| Conveyancing and costs | about $3,000 |
| Cash needed | $119,670 |
For illustration, at 6.00% p.a. over 30 years, $608,000 costs about $3,645 a month and $684,000 about $4,101 a month.
Waiting saves Rahul $152,400 in cash and lets him buy the house he actually wants. As a permanent resident and a first home buyer he could go further again: Melbourne's 5% Deposit Scheme price cap is $950,000, so a 5% deposit of $38,000 with no lenders mortgage insurance would bring the cash needed to about $81,670 on a $722,000 loan. See the 5% deposit guarantee.
The risk in waiting is the market, not the rules. Eight months of price growth in Melbourne's north could eat part of that saving, and a nomination can be refused. We model both sides with real numbers rather than assumptions, and a pre-approval keeps you ready either way.
What lenders still check after the grant
Permanent residency removes the restrictions, not the assessment. A newly granted 186 holder is often in the same job they have held for years, which is a strength. The usual questions remain: time in the role, living expenses, existing debts including anything held overseas, and a documented deposit. If your savings have been sitting in an offshore account, move them early and keep the receipts.
For the position before the grant, see buying property as a temporary resident, FIRB approval for property and our 482 Skills in Demand page. Our home loans for visa holders page and the visa subclass comparison cover the rest, and Craigieburn mortgage broker covers the corridor in this example.
Frequently asked questions
Is the 186 visa permanent residency?
Yes. The Employer Nomination Scheme visa lets nominated skilled workers live and work in Australia permanently. From the grant date you hold a permanent visa, which under the foreign investment framework means you are not a foreign person: no approval, no application fee, no restriction on established dwellings, and no foreign purchaser duty surcharge in any state.
Should I buy before or after my 186 is granted?
Almost always after, if the wait is measured in months. On a $760,000 Victorian purchase, permanent residency removes about $76,400 in surcharge and application fees, opens established housing, allows up to 95% of the property value and makes the 5% Deposit Scheme available. The counter-argument is market movement while you wait, which is worth modelling with actual figures rather than assuming.
Can I get a home loan while my 186 is being processed?
Sometimes. A 482 holder with a lodged permanent visa application is viewed more favourably by several lenders than one without, and a lodged application can offset a short remaining visa term. If your 482 has expired and you are on a bridging visa, the field narrows sharply. Either way you are still a foreign person for property purposes until the permanent visa is granted.
Does the 187 visa still exist?
The Regional Sponsored Migration Scheme visa has been closed to most new applications for several years, but visas already granted remain permanent visas. If you hold a 187, you are a permanent resident for every purpose discussed here, including foreign investment, duty surcharges and access to government schemes. Check your own grant notice and confirm current program settings with the Department of Home Affairs.
Do I get first home buyer benefits on a 186?
If you meet the other conditions, yes. In Victoria the first home buyer duty exemption applies to purchases up to $600,000 with a concession to $750,000, and all purchasers must be citizens or permanent residents, which you now are. The $10,000 First Home Owner Grant applies to a new home valued up to $750,000. Neither is available on a temporary visa.
Talk to GNT Finance
If your 186 nomination is in progress, this is the right moment to plan the purchase rather than the wrong moment to rush one. We will map what the same property costs before and after the grant and have the lender lined up either way. Gorakh Timilsina worked as a senior credit officer before founding GNT Finance. Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax, migration or financial advice. Visa and foreign investment rules change — confirm current requirements with the Department of Home Affairs, the Foreign Investment Review Board or a registered migration agent.
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.