Applying for a home loan while holding a bridging visa requires additional consideration compared to applications from Australian citizens or permanent residents. This is because a bridging visa is a temporary visa designed to allow lawful stay in Australia while another visa application is being processed. As a result, lenders apply more specific assessment criteria when reviewing these applications.
This article explains how bridging visa home loans are assessed in Australia, which bridging visa types may be considered, how borrowing capacity is determined, and what documentation is typically required.
A bridging visa home loan is a residential mortgage available to borrowers holding a Bridging Visa A (subclass 010) or Bridging Visa B (subclass 020). As these visas provide interim lawful status, holders are classified as temporary residents for lending purposes. These visas allow applicants to remain lawfully in Australia, often with work rights, while a substantive visa application is being processed.
From a lending perspective, a bridging visa home loan works like a standard home loan but has special considerations. It is assessed with additional focus on visa status and source of income. Lenders focus on whether the applicant has an established visa history and a clear pathway to permanent residency or a long-term temporary visa.
Other bridging visa subclasses are generally not accepted by most lenders due to restrictions on work rights or increased uncertainty around residency outcomes.
How much you can borrow on a bridging visa is influenced by two main factors: the loan-to-value ratio (LVR) limits set by the lender, and your borrowing capacity based on your financial situation.
LVR refers to how much you can borrow compared to the value of the property and determines the maximum loan amount a lender is willing to extend based on the property’s value. For bridging visa home loans, lenders often apply lower maximum LVRs due to the temporary nature of the visa.
In many cases, the maximum LVR ranges between 60% and 80%, depending on the borrower’s circumstances. Borrowers with a clear permanent residency application in progress and strong Australian income may be eligible for higher LVRs within this range, which can reduce the deposit required when buying a property on a bridging visa.
For eligible borrowers, Yard offers a bridging visa home loan with up to 80% LVR, subject to assessment.
In addition to LVR limits, lenders assess how much you can borrow based on your financial situation. This includes your income, living expenses, and any existing financial commitments such as personal loans, car loans, or other home loans. The goal is to ensure the loan is affordable and can be comfortably repaid.
Loan terms are often up to 28 years where long-term income stability can be demonstrated. In some cases, shorter loan terms may apply if residency outcomes are less certain.
Interest rates for bridging visa home loans are typically higher than standard home loans, reflecting the additional assessment considerations involved. Rates will vary depending on the loan structure and the borrower’s overall financial position.
Yard’s borrowing capacity calculator can help you estimate how much you may be able to borrow based on your financial situation.
Home loan approval for bridging visa holders is possible, but it depends on several factors. Because bridging visas are temporary and transitional, lenders tend to assess these applications more cautiously than standard home loan applications.
Lenders look closely at your income and financial position. This includes your income level, how consistent it is, and your ability to provide income verification documentation. They also assess the stability of your employment or business activity, including the continuity of earnings and whether income has been maintained over a sustained period.
Your credit history and repayment behaviour also play an important role. Lenders review how you’ve managed past and existing credit, including any missed repayments, defaults, or on-going financial commitments. This helps them assess whether the loan is affordable alongside your current obligations. The size of your deposit and overall financial position are key considerations as well. A larger deposit and healthy cash buffers can strengthen your application. Lenders will also assess the property type and location, as some properties are considered higher risk and may attract stricter lending criteria.
Visa-related factors are assessed alongside financial considerations. This includes the current bridging visa subclass and conditions, the length of time remaining on the visa, and the visa being applied for. Applicants with a clear pathway toward permanent residency are generally viewed more favourably than those with uncertain outcomes.
Together, these factors allow applications to be assessed appropriately and aligned with loan options that best suit the applicant’s circumstances.
Documentation requirements for a bridging visa home loan vary depending on the applicant’s employment type and loan purpose. The following checklist outlines the documents commonly requested for salaried and self-employed applicants holding a bridging visa:
Additional documents such as FIRB approval, a contract of sale, evidence of deposit or existing home loan statements may be required depending on the type of transaction (property purchase or a home loan refinance).
When applying for a home loan on a bridging visa, lenders look for certainty, stability, and evidence of long term residency intent. The following checklist outlines practical steps that can strengthen your application.
Yard supports borrowers who don’t meet traditional bank criteria, including eligible applicants on bridging visas working with clients who have non-standard income or employment structures.
We assess your circumstances upfront and find a solution that aligns with your visa status and residency pathway. Whether you’re a temporary resident earning income in Australia or a non-resident investor with foreign income, Yard offers lending solutions designed to accommodate complex financial structures, currency considerations, and documentation requirements.
Speak with a Yard Loan Consultant for expert guidance and support at every stage of your application.
Yes. Bridging visa home loans are assessed differently to standard home loans due to the temporary nature of the visa. This can mean lower maximum loan-to-value ratios, higher minimum deposit requirements, and additional eligibility criteria compared to standard loans.
Interest rates for bridging visa home loans are typically higher than standard home loans, reflecting the additional assessment considerations involved. The exact rate will depend on the loan structure and the borrower’s individual financial position.
A joint application can positively influence the outcome, particularly where one applicant is an Australian citizen or permanent resident. In these cases, the application may be assessed as an Australian application, which can result in more favourable terms, including higher borrowing capacity or access to a broader range of loan products. That said, both applicants are still assessed individually on income earned. The bridging visa holder’s income, visa pathway, and residency outlook remain important to the overall assessment.
Temporary residents such as individuals on bridging loans generally need to apply for and receive foreign investment approval before purchasing any residential real estate in Australia. Lenders also commonly require evidence of FIRB approval (or a confirmed exemption) as part of the mortgage approval process. For this reason, it’s recommended to confirm FIRB requirements early and apply for approval where there is any uncertainty, to avoid delays to loan approval or settlement.
Not necessarily, but higher deposits are common. With Yard, eligible bridging visa borrowers can access home loans with a minimum 20% deposit, allowing up to 80% LVR. Actual deposit requirements depend on your visa pathway, income stability, and overall financial position, with borrowing capacity assessed on your income, existing commitments, and ability to meet repayments. Use Yard's borrowing calculator to determine how much you may be able to borrow.
Yes, if you are a temporary resident, you are considered a "foreign person" in most cases and must pay a foreign buyer stamp duty surcharge (also called Surcharge Purchaser Duty or Additional Foreign Acquirer Duty) in most Australian states and territories. This is in addition to the standard stamp duty everyone pays. If you purchase a property jointly with an Australian citizen or permanent resident partner, the surcharge generally only applies to your share of the property.
Lenders look at overall visa continuity and compliance to understand residency stability over time. A clear and consistent visa history can support an application, particularly where there is an established pathway toward longer-term residency.
If a bridging visa is cancelled or expires before settlement, the loan approval may be withdrawn. Lenders must ensure the borrower can remain lawfully in Australia beyond settlement. Maintaining a valid visa status throughout the approval and settlement process is essential to avoid delays or declined applications.
Australian-sourced income is most commonly accepted. This includes salaried income and self-employed income earned in Australia with valid work rights. Some lenders may consider foreign income, which is a foreign income home loan, however this is usually subject to income shading. Acceptance of foreign income varies by lender and is evaluated on a case by case basis.
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