Buying a house in Australia as Permanent Resident

Buying a house in Australia as a permanent resident: requirements and benefits

While it might be called the Great Australian Dream, it’s safe to say that owning your property is a dream felt by a number of people worldwide. Every year, the number of migrants calling Australia home has been increasing significantly. According to the Australian Bureau of Statistics, in 2019, this number reached 7.5 million, which means 29.7% of the whole Australian population.

Naturally, these statistics also reflect on housing. Many Permanent Residents rent a place when they first arrive in the country and, once settled down, it is common to start looking for their own property to buy in Australia. And this is the time when most questions start rising: 

  • Can I buy a house as a Permanent Resident?
  • What are the differences between Migrants and Australian citizens when it comes to buying properties in Australia?
  • Am I eligible for any kind of grant once I get the PR?

Let’s face it, property ownership and buying a house in Australia can be challenging for the average Aussie, let alone those choosing to call Australia home. Whether you plan to use your property as an investment or work with a mortgage broker to find your forever home, it can be difficult to know where to start. But don’t worry, we will help you out in this article!

Buying a house in Australia as a permanent resident – what you need to know:

Wait a minute, can permanent residents even buy a house in Australia and purchase a home in Australia? Yes, permanent residents not only can buy a house in Australia, but they also have pretty much the same benefits and requirements as Australian citizens do.

Like Australian citizens, first-home buyers who are permanent residents are eligible to borrow up to 95% of the property’s value and access many Government grants, such as:

First Home Owner Grant (FHOG)

If you are building or buying a new house for up to $750,000 (depending on the state or territory) for the first time, you might be eligible for the First Home Owner Grant.

This is a national scheme created in 2000 and administered by each state and territory that reduces the impact of the GST on home prices. It basically helps you increase your deposit, which may improve your eligibility for buying a house in Australia.

For many first-home buyers looking to buy a house in Australia, one of the biggest financial hurdles they may endure is gathering the funds to hand over a 20% deposit. With the FHOG, permanent residents can work through this process more confidently, getting them one step closer to owning their own home. 

Stamp duty concessions

After the deposit, the next financial hurdle on the list is stamp duty. Stamp duty is a tax governments impose on certain transactions, primarily related to transferring real estate or other significant assets. Fortunately, permanent residents are also eligible for various stamp duty concessions. 

This benefit applies to first-home buyers purchasing new or existing homes and allows them to access full tax concession, depending on the price of the property and the state or territory they are buying at. 

First Home Super Saver Scheme (FFHS)

To further help permanent residents buy a house in Australia and make their mark on the property ladder, they can also take advantage of the First Home Super Saver Scheme (FHHS). 

The FHSS scheme allows permanent residents and Australian Citizens to save up to $30,000 to buy their first house in voluntary contributions to their superannuation fund.

Capta Financial — trusted and highly experienced mortgage brokers 

If you are a permanent resident or an Australian citizen looking to purchase your first home under the First Home Guarantee Scheme, you won’t need to pay Lenders Mortgage Insurance (LMI), which is usually required when you have less than a 20% deposit. This Government-led initiative allows you to purchase a home with a deposit as low as 5%, making it easier for first-time home buyers to enter the property market. 

Working with a talented team of mortgage brokers like Capta Financial can simplify the process. We’ll collaborate with you and use our pool of lenders to uncover the best property loan for your circumstances.

For more information about our services, please contact us today. We also recommend you to read our article on the First steps to buy a house in Australia to understand where to start from.

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