Two incomes, one bridging visa and a first home pre-approval
Buying your first home together is a big moment. For some couples it comes with a few extra hurdles, especially when one partner is an Australian citizen and the other is still on a temporary visa.
I recently helped a couple in exactly that position get pre-approved for their first home together. It took some digging through lender policy, but we got there, and the result was better than they’d expected.
Where they started
She’s an Australian citizen working full time. He applied for a partner visa earlier this year and holds a bridging visa while that application is processed. He works casually, but he’s been with the same employer for eight months with steady weekly payslips to show for it.
When they first came to me, they’d been told their application would likely need to be assessed on her income alone, with him either listed as a dependent or left off entirely. That cut their borrowing capacity right down and put a lot of properties out of reach.
Looking further across the market
I didn’t want to accept that as the only answer, so I went looking for a lender whose policy would look at both of them properly. That meant one that would consider their de facto relationship, his visa position and his casual work history together rather than ruling him out on any one of them.
The structure we wanted was for both of them to be on the loan with both incomes counted for servicing, while the title would sit in her name only. Because they’ll be living in the home together, they both benefit from the purchase even though only one of them will own it on paper.
That kind of arrangement has real legal implications, particularly in a de facto relationship where one partner isn’t a citizen. We strongly recommended they speak with a solicitor before going ahead so they each understood their rights and obligations.
We found a lender willing to accept both incomes, including his casual earnings, despite his temporary visa status.
How it turned out
A common sticking point with temporary visa holders is LVR. Many lenders cap these applications at 80% of the property’s value, which means a much bigger deposit. The lender we used has a policy allowing up to 95%, subject to its criteria and approval.
We secured pre-approval at 89.95% LVR with both incomes counted. That lifted what they could borrow well above what her income alone would have supported, and their capacity was assessed against their full income, living costs and commitments so the repayments stay manageable.
They’re now house hunting in a higher price range than they thought was possible. Formal approval will still depend on the property they choose, the valuation and the lender’s final assessment, but they have a clear path forward.
Why lender choice matters
The main lesson here is that one lender’s policy doesn’t speak for the whole market. Lenders differ a lot on temporary and bridging visas, partner visa applications, casual income and what they’ll accept for servicing. An application one lender turns down can be workable somewhere else with the right structure.
Finance is also only part of the picture. When visa status, a de facto relationship and ownership structure are all in play, independent legal advice matters just as much as the loan.
The next chapter
We’re thrilled for these two. They’re out looking for the place that will be their first home together in Australia, and that’s the part of this job I love most.
If you’ve been told you can’t get finance, it’s worth getting a second look before you accept that.
Disclaimer: This article is based on a specific client scenario. Lending policies, visa eligibility, acceptable income, maximum LVRs and interest rates vary between lenders and are subject to individual assessment, supporting documentation and credit approval. This article is general information only, does not take your personal circumstances into account and is not credit or legal advice. Independent legal advice should be obtained where appropriate.
This article was written by Jeane Hofmeyr at The Broker Society
