Getting around Australia as a temporary resident can be difficult. Using the train or bus gets older and taxis can get expensive. Finding a lender that will approve you for finance without Permanent Residency can be difficult, but it isn’t impossible. Most lenders are wary of temporary residents, even those with work permits, because they are a higher risk. Since most work permits have an expiry (expiration date), lenders see them more likely to skip out on a loan. Sometimes temporary visa holders breach the limits of their visa before their expiration date, which means they must return home sooner. While these are worst-case scenarios, to a bank it is a major factor in their decision of whether or not to approve a car loan to someone with a temporary work visa.
Type of Visa
Student visa and temporary work visas with a path to residency have a little more lout. If you have a visa sponsor, this also helps you to get approved more easily with a lender. Arrivals with provisional or bridging visas without any expiration date are usually almost always declined for finance because income isn’t taken into consideration for these types of visas.
Temporary Visa Loan Terms
There is a good chance that you will be approved for a car loan with a temporary visa. However, be prepared for the lender to set a loan term that fits your specific visa’s time limit. This may mean that your repayments may be higher than loans with standard terms. Because you are in a high-risk profile, the bank may be only approved with you as a sub-prime borrower. This category includes those with bad credit yielding higher interest rates. This means that it is important that you only apply for the amount you need for your car and nothing more, because of the high interest rate.
First, you must be 18 years old in order to apply for an auto loan in Australia. If you are, next you should take time to gather as much information about your finances and your residency as possible before applying for a car loan. Your lender will need all of this information in order to make the most informed decision. Examples of documents to bring with you include your passport, your work visa, proof that you pay your bills full and on time and that you have a steady income. You also will need an Australian bank account in good standing. Also, if you have a sponsor that vouches for you it will help improve you chances of approval. This may even help you get a slightly better interest rate. Talk about a win-win!