Non-Resident Car Loans

With most lenders, to get a car loan, the requirement is to be a Permanent Resident or a Citizen of Australia. Outside of this, most lenders just don’t want to know.

There are some lenders with a fairer approach if you can fit their normal lending criteria, such as their affordability calculations.

If the applicant’s visa gives them permission to work in Australia, and they are not breaching that visa by working more hours than allowed, or by working multiple jobs where the visa states they can work for their sponsor only, there are a few lenders that will still allow non-residents to obtain a car loan, as long as their visa has an expiry date and the term of the loan would fit within their visa expiry. This means that if the applicant is on a bridging visa, they would not be able to apply whilst their bridging visa is pending as a bridging visa has no expiry date.

Unfortunately the lender will only go off what the current visa states and will not consider any pending visa decision, even if the applicant believes the outcome of the visa application will be granted regardless.

The problem lies when there is only a short time before the expiry on the current visa, as the loan term has to be shorter, meaning repayments are much higher and could prevent the applicant from passing the affordability tests that each lender has.

Temporary or provisional visas can also pose a problem with some lenders, as they are viewed in a similar light to a bridging visa where there is still a formal grant pending, and this is very problematic with current spousal visas now, as those temporary periods can be quite lengthy and can often prevent a couple from obtaining the sized loan they are after, even when one of the applicants is a resident or citizen of Australia, as the visa holder’s income cannot be taken into consideration to show affordability.

Each application will be considered on a case by case basis and careful preparation should be undertaken prior to applying anywhere, as the more times the applicant applies and places an enquiry on their credit file, the harder it will be to get approved for the best loan. Good professional advice should be obtained prior to applying anywhere.

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