29
Jun
Lend 1

Australian Banks tighten lending policy for temporary and non-residents

In the past few weeks, many of the major Australian banks have changed the criteria of providing loans to the temporary residents in Australia and non-residents in foreign countries with foreign currency revenue.

According to National Australia bank, the maximum value for a loan has been decreased from 80 percent to 60 percent for the non-residents in Australia applying for home loan. The bank will provide discount up to 40 percent, depending on the person’s monthly or yearly salary. The bank has also rejected the applications given by the temporary visa holders with foreign currency income- they can only accept loans up to 70 percent of the property’s value with Australian dollar earnings.

The spokesman of the Commonwealth Bank stated, “The Commonwealth Bank has tightened requirements for some temporary residents in the areas of self-employed applicants and temporary visas who are seeking to borrow for residential purposes.”

The bank has also denied to accept further applications that have been submitted through the Introducer Program and also comprises of applications submitted by the temporary residents in Australia, Permanent Resident expatriates and citizens of Australia and New Zealand.

Westpac, another major Australian bank, has decided to stop offering loans to the non-residents, foreigners with Australian dollar income and temporary residents of Australia.

In turn, this has benefitted the migration agents such as Nexus Partners, which has collaborated with Migration Alliance in order to create an easy and conducive financial solution for its members and clients. The firm provides solutions for home and investment lending, transportation and equipment finance solution, commercial and business finance solution and much more.