Explore car loan options for non-residents and temporary visa holders working in Australia.
Fact checked
Getting around in Australia as a temporary resident usually means you have to take the train. Or if you’re feeling a bit lavish, you can take a taxi or an Uber everywhere. Finding a lender or broker that will approve you for finance without permanent residency or citizenship may be difficult, but it isn't impossible. Find out more about your car loan options right here with Savvy today!
Lenders are more wary of temporary residents, even if they have a work permit, because they represent a higher risk than permanent residents or citizens. Since most work permits have an expiry, lenders would rather place a “sure bet” on someone who has no reason to skip out on a loan by returning to their home country. Temporary visa holders may breach the limits of their visa by working more hours than they're entitled to, or with employers other than their visa sponsor. If they breach their visa conditions, it could mean instant cancellation, which would mean they must return home. Of course, these are worst-case scenarios, but banks and lenders think of every eventuality and factor that into their decision.
Banks and lenders generally favour temporary work visas and student visas with a path to permanent residency. If you have a visa sponsor, this can work towards your approval in the eyes of lenders. Bridging or provisional visa holders without expiry dates are usually declined for finance, as income isn’t taken into consideration. These visas are dependent on a decision by the government, which could go either way.
If you're working in Australia with a temporary work permit, a lender may approve your car loan. However, they're well within their right to set a loan term that fits within your visa’s time limit. This means your repayments may be higher than loans with standard terms (five years is usually the standard). Since you fit a higher risk profile, they may only approve your loan as a “sub-prime” borrower. “Sub-prime” borrowers tend to be people with bad credit. That means higher interest rates compared to borrowers with average or good credit.
Like any type of loan, it helps to have as much information about your finances and residency as possible so your lender can make an informed decision. Proof that you pay your bills on time and in full, that you have steady income and a sponsor that vouches for your good conduct helps you gain approval, and perhaps even a (slightly) better interest rate. As always, you should seek advice from a financial professional before applying for a car loan as a non-resident.
The Temporary Work (Skilled) visa, also known as the subclass 457 visa or simply the 457 visa, was a common accepted visa by lenders when it came to car loans. It was considered one of the most suitable visas for car loan applications, with some lenders approving applications for loans shorter than the visa period.
However, the 457 visa was abolished in Australia in 2018, being replaced by the Temporary Skill Shortage (TSS) visa, also known as the 482 visa. This visa is another common one for car loan applications as it can grant stays as long as four years (or five years if you’re a Hong Kong passport holder).
If you’re living in Australia on a 482 visa, you can enquire about a car loan with Savvy and we’ll check whether your profile is suitable for approval with one of our trusted lending partners.
We have over 40 lenders on our panel, allowing us to pass on more competitive rates for you to compare.
Your consultants guide you through the entire process, from your initial application all the way through to settlement.
With an online process, you can apply at any time of day or night. We can also help no matter where you live.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
