In short: A foreign person who is not an Australian citizen or permanent resident generally cannot buy an established dwelling in Australia while the federal ban is in force, and needs Foreign Investment Review Board approval to buy a new dwelling or vacant land. Financing is possible through a small group of lenders, usually capped near 70% of the property value, and the surcharges and fees add tens of thousands to the purchase.
This page sets out what the rules actually cost. It is the total cash figure, not the interest rate, that decides whether a non-resident purchase makes sense.
Who counts as a foreign person
The categories matter more than the passport.
| Status | Foreign person for FIRB purposes | Can buy an established dwelling | Needs FIRB approval |
|---|---|---|---|
| Australian citizen (living anywhere in the world) | No | Yes | No |
| Australian permanent resident | No | Yes | No |
| New Zealand citizen holding a subclass 444 visa | Generally treated as ordinarily resident if living in Australia | Generally yes | Generally no while ordinarily resident |
| Temporary visa holder living in Australia (student, 482, 485, partner) | Yes | No, while the ban applies | Yes, for a new dwelling or vacant land |
| Person living overseas with no Australian visa | Yes | No, while the ban applies | Yes, for a new dwelling or vacant land |
| Foreign-owned company or trust | Yes | No, while the ban applies | Yes |
Australian citizens overseas are not foreign persons and do not need FIRB approval. If that is you, our expat home loans page is the right one.
The established-dwelling ban
The federal government banned foreign persons, including temporary residents, from buying established dwellings from 1 April 2025. It was originally a two-year measure to 31 March 2027, and in the 2026–27 Budget the government announced an extension to 30 June 2029, with limited exceptions for investments that materially increase housing supply. Confirm the current position at ato.gov.au, which administers foreign investment in residential land.
What remains available to a foreign person, subject to approval:
- A new dwelling — one that has not been previously sold as a dwelling and has not been occupied for more than 12 months. Off-the-plan apartments and house-and-land packages are the usual route.
- Vacant residential land, on condition that construction is completed within a set period, commonly four years, and that the land is not left undeveloped.
- Redevelopment of an established dwelling in narrow circumstances, where the number of dwellings is genuinely increased. The threshold for this exception has been tightened.
There is a longstanding exception where a foreign person buys jointly with an Australian citizen or permanent resident spouse as joint tenants. Whether it applies to your situation is a legal question, and the joint-tenant requirement is strict. See joint tenants versus tenants in common and get advice before you sign.
The full cost of a non-resident purchase
The headline is the surcharge stack. Here is a complete worked example.
Worked example: a $850,000 new apartment in Melbourne
A foreign buyer, resident overseas, purchases an off-the-plan apartment in Melbourne for $850,000.
| Cost | Amount | Basis |
|---|---|---|
| Deposit at 70% LVR | $255,000 | Loan of $595,000; many lenders cap non-residents at 70% |
| Victorian land transfer duty | $46,070 | $2,870 + 6% of the excess over $130,000 on $850,000 |
| Foreign purchaser additional duty (VIC 8%) | $68,000 | 8% of $850,000 |
| FIRB residential application fee | $15,600 | The 2026-27 fee for residential land other than an established dwelling, where the consideration is $1 million or less. It rises to $31,300 to $2 million and $62,600 to $3 million, and fees for established dwellings are tripled. Fees are indexed each 1 July — confirm the current figure before you apply. |
| Conveyancing, searches, registration | roughly $2,500 | Indicative |
| Total cash needed at settlement | roughly $387,000 | On an $850,000 property |
That is about 45% of the purchase price in cash, against roughly 25% for an Australian permanent resident buying the same apartment. The foreign purchaser duty and the FIRB fee alone add over $83,000 that a local buyer never pays.
Then there is the annual holding cost. Victoria applies an absentee owner land tax surcharge of 4% on top of ordinary land tax, and vacant residential land tax applies state-wide to homes left empty. See foreign purchaser additional duty, land tax explained and vacant residential land tax.
Duty surcharge by state
| State | Foreign purchaser duty surcharge | Absentee or foreign owner land tax surcharge |
|---|---|---|
| Victoria | 8% | 4% |
| New South Wales | 9% | Applies; check the current rate |
| Queensland | 8% | Applies |
| South Australia | 7% | Applies |
| Western Australia | 7% | No general foreign owner land tax surcharge at the time of writing |
| Tasmania | 8% | Applies |
| ACT and NT | Different arrangements apply | Check the territory revenue office |
Rates and thresholds change. Verify with the relevant state revenue office before you commit — for Victoria, sro.vic.gov.au.
Lending to non-residents
Most Australian banks will not lend to a borrower with no Australian residency and no Australian income. A small group of lenders will, and their policies share a shape:
- Maximum LVR is usually around 70%, sometimes 60% for certain countries or income types, and occasionally 80% for a strong file.
- Income is shaded. Foreign currency income is commonly discounted by 20% to 40% before servicing is calculated, on top of the APRA-style buffer applied to the assessment rate. See foreign currency income home loans.
- Some currencies and countries are excluded entirely by particular lenders, usually for sanctions, verification or exchange-control reasons.
- Documents must be verifiable. Payslips and tax documents in another language need a certified translation, and lenders commonly require employer verification by phone or an independently obtained tax record.
- Rates sit above the standard market, and some lenders charge a risk fee.
We never quote a rate as ours and we never promise an approval. What we can do is tell you before you sign a contract whether financing your specific profile is realistic, which is a far more useful answer than a rate.
Source of funds
Every lender and every conveyancer will ask where the deposit came from, and anti-money-laundering obligations mean the answer has to be evidenced, not asserted. For an overseas buyer this is usually the slowest part of the file.
- Bank statements from the source account showing the funds accumulating, not just a lump sum appearing.
- Evidence of the underlying source: employment income, a business sale, a property sale, an inheritance.
- Where the money is a gift, a signed gift letter plus the giver's own evidence of source.
- Where funds move across a border, evidence that the transfer complied with the sending country's law. We will not advise you to move money in breach of another country's exchange-control rules, and you should take local legal advice where those rules apply.
Frequently asked questions
Can I buy an established house in Australia on a student or 482 visa?
Generally no while the federal ban is in force. Temporary residents are foreign persons for foreign investment purposes, so an established dwelling is off the table subject to narrow exceptions. New dwellings, off-the-plan apartments and vacant land to build on remain available with FIRB approval. Read buying property as a temporary resident for the detail.
What happens if I buy without FIRB approval?
Buying residential land as a foreign person without approval is a breach of the Foreign Acquisitions and Takeovers Act. Consequences can include a forced disposal order requiring you to sell, civil penalties calculated on the value of the property or the capital gain, and in serious cases criminal prosecution. Conveyancers routinely refuse to settle without evidence of approval. There is no practical upside to skipping it.
Do I need FIRB approval once I become a permanent resident?
No. A permanent resident is not a foreign person, so no approval is needed for future purchases and the established-dwelling ban does not apply. If you already hold a property bought under an approval with development conditions attached, those conditions generally continue to bind the property, so check before you assume they lapse.
Can I get an Australian home loan using only overseas income?
Some lenders allow it, at a lower LVR and with the income shaded. The practical obstacles are verification and currency. A salary paid in a widely traded currency by a large, verifiable employer is far easier than self-employed income in a currency the lender does not list. Having an Australian bank account with a savings history helps considerably.
Is the foreign purchaser duty surcharge refundable if I later get PR?
Generally no. Duty is assessed on your status at the time of the contract or transfer, not later. Some states have limited exemptions or refunds in narrow circumstances, for instance for certain visa holders who go on to occupy the property, so it is worth checking the specific rule with the state revenue office rather than assuming either way.
Should I buy in a company or trust instead?
It rarely helps a foreign buyer. A foreign-owned company or trust is itself a foreign person, so the ban and the surcharges still apply, and financing becomes harder and dearer. Structures are chosen for tax and succession reasons, not to sidestep foreign investment rules, and doing the latter deliberately carries real penalties. See buying property in a company or trust.
Talk to GNT Finance
Before you pay a holding deposit, it is worth knowing the total cash the purchase will require and whether a lender will fund it. GNT Finance will model the full cost including duty, the surcharge and the FIRB fee, and tell you plainly if the answer is no. Consultations in English, Nepali or Hindi, with an interpreter in your language on request. Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax, migration or financial advice. Foreign investment rules, fees and duty surcharges change — confirm current requirements with the Australian Taxation Office, the Foreign Investment Review Board and the relevant state revenue office.
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.