Car Loans for 457 Visa Holders
Generally to borrow money for car loans in Australia you are in most cases required to be a Permanent Resident of Australia or a Citizen. An exception to these criteria is if you hold a current valid 457 work sponsorship visa.
The conditions of the lenders would be that your loan term would expire prior to your 457 Visa expiry date, regardless of any promise of an extension from your employer, as this grant has been approved by Immigration and any extension of visa requires a new application, which if the outcome has not been granted by Immigration, the lender is not certain whether the visa holder can legally stay in Australia past their current visa expiry date, which is why they request the loan term to expire prior to the current visa expiration date.
Lenders may impose a few other requirements depending on what field of work you are in, like cash deposit to reduce the amount borrowed against the car, this is to minimise the lender’s risk whilst using the car as security. This requirement was put in place so that if the lender had to repossess the vehicle, or the borrower went back to their country leaving the car at the airport, the wholesale price of the car should nearly cover the loan payout, reducing any risk of loss to the lender.
These requirements are assessed on a case by case basis for 457 Visa Holders, as not every applicant would be the same in regards to asset position, cash savings or their profession. This would be determined by the lender to assess the risk and request what conditions they see suited to the actual applicant based on the strength of their overall profile without any credit history in Australia to review, as credit file is normally the first point of call when assessing a normal application for car loans.
It is recommended to speak to a professional broker in regards to applying for a car loan whilst on a 457 Visa, as from experience they should know which lenders would best suit the applicants circumstances in both approval and most competitive deal dependent on their personal profile and strengths.
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