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Fly in, drive out: Car loans for temporary residents

Here as a temporary resident? There are options to help you get on the road.

Key takeaways

  • Although it's possible to get a car loan as a temporary resident, lenders will only lend to some visa types.
  • You'll likely only be approved if your loan term is less than the remaining time on your visa.
  • There are ways you can increase your chances of approval, like having a larger deposit.

Can I get a car loan as a temporary resident in Australia?

Some lenders are willing to offer a car loan to temporary residents in Australia, but it will likely depend on the visa you are on.

As a temporary resident you are more of a risk to lenders because a loan term is often longer than the length of a visa.

This is more of a problem for some visas than others, but you'll still need to know about eligibility and other potential conditions before you apply.

Car loans temporary residents may be able to apply for

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Name Interest Rate (p.a.) Comp. Rate (p.a.) Application Fee Monthly Fee Monthly Repayment
NAB Personal Loan Unsecured Fixed
NAB logo
Fixed1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
8.49%
to 20.49%
Comp. Rate (p.a.)
9.54%
to 21.49%
Application Fee
$250
Monthly Fee
$10
Monthly Repayment
$649.15
More Info
You'll receive a fixed rate between 8.49% p.a. and p.a. (9.54% p.a. to p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
NAB Personal Loan Unsecured Variable Rate
NAB logo
Variable1 - 7 Years $5,000 - $55,000
Interest Rate (p.a.)
8.49%
to 20.49%
Comp. Rate (p.a.)
9.54%
to 21.49%
Application Fee
$250
Monthly Fee
$10
Monthly Repayment
$649.15
More Info
You'll receive a variable rate between 8.49% p.a. and p.a. (9.54% p.a. to p.a. comparison rate) based on your risk profile
Borrow from $5,000 to $55,000, with 1 to 7 year loan terms available. This loan comes with no fees for extra repayments and no early exit fees.
ANZ Fixed Rate Personal Loan
ANZ logo
Fixed1 - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
7.49%
to 19.99%
Comp. Rate (p.a.)
8.18%
to 20.58%
Application Fee
$150
Monthly Fee
$10
Monthly Repayment
$636.7
More Info
Special Offer: For a limited time, eligible borrowers of an ANZ Personal Loan can get a cashback of $500. This applies to both new loans and loan increases of $10k.
Offer ends 15 October 2024. There is a limit of one cashback per loan per customer within an 18 months period. Cashback will be paid within 120 days of drawdown. Eligibility, ANZ’s credit assessment criteria, T&Cs, fees and charges apply.
ANZ Variable Rate Personal Loan
ANZ logo
Variable1 - 7 Years $5,000 - $50,000
Interest Rate (p.a.)
7.49%
to 19.99%
Comp. Rate (p.a.)
8.18%
to 20.58%
Application Fee
$150
Monthly Fee
$10
Monthly Repayment
$636.7
More Info
Special Offer: For a limited time, eligible borrowers of an ANZ Personal Loan can get a cashback of $500. This applies to both new loans and loan increases of $10k.
Offer ends 15 October 2024. There is a limit of one cashback per loan per customer within an 18 months period. Cashback will be paid within 120 days of drawdown. Eligibility, ANZ’s credit assessment criteria, T&Cs, fees and charges apply.
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How does a car loan for a temporary resident work?

A car loan for a temporary resident is essentially the same as any other car loan or personal loan, except that lenders will generally apply more stringent eligibility criteria.

Provided you meet that criteria and are approved for the loan, you'll be given the amount of money needed to purchase a car, and will enter into a contract to make repayments. Those repayments will cover the principal amount you've borrowed plus the interest charged at regular periods over a set loan term.

Regardless of your status in Australia, the lender may have requirements about the type or age of car purchased with the loan. For example, a lender is unlikely to extend a car loan to purchase a car more than a few years old, or a car that has been in an accident.

Note that lenders will only consider your current visa and will not rely on pending visa applications or extensions, no matter how likely their success.

What criteria might apply?

As a temporary resident, additional strict lending criteria and other considerations will apply, including:

  • Loan term. While a typical loan term for a car loan is five to seven years, a lender will likely not offer a loan term that extends past the expiration of your current visa. Generally, the loan term will end at least three months before the expiration of your visa. Note that lenders will only consider your current visa and will not rely on pending visa applications or extensions, no matter how likely their success.
  • Visa type. Some lenders will only extend credit to temporary residents holding certain types of visas. People with student visas and temporary work visas with a path to permanent residency will have a greater chance of success than someone on a provisional or bridging visa with no set expiry date. If your visa has been sponsored by an employer, this will greatly improve your chances of success.
  • Credit history. For Australian citizens, lenders look at an applicant's credit history when considering a car loan application. Temporary residents typically have little or no credit history in Australia, and Australian lenders do not consider overseas credit history. For this reason, lenders will place more emphasis on an applicant's deposit, income and employment status.
  • Visa breaches. Many visas have strict limitations on the number of jobs that can be held or the number of hours of employment each week. While it is important to maximise your income before applying for a car loan, lenders will not lend to anyone in breach of the conditions of their visa by working extended hours or multiple jobs.

How do I know if I am eligible for a car loan?

As with all car loans and personal loans, different lenders will have different requirements in relation to income, employment history, loan terms, deposits and lending amounts.

But for a temporary resident, there is further eligibility criteria. Unfortunately there's no clean cut answer here because that criteria will differ between lenders too.

Some lenders will not offer a car loan to temporary residents at all, while others will only consider temporary residents holding certain visas. Additionally, lenders will have different criteria regarding how long you have been in Australia, the expiry of your current visa, and your employment stability.

Examples of visa requirements for temporary residents include:

  • ANZ. Holders of any temporary working visa apart from working holiday visas are eligible. Borrowers must have at least 12 months left on the visa and the loan term must not exceed the length of time left on the visa. Borrowers must also earn at least $50,000 a year.
  • Bank of Melbourne. A minimum of one year remaining on your visa at the time of application. Must hold a visa contained on an extensive list of acceptable visa numbers.
  • BankSA. As above with Bank of Melbourne.
  • CommBank. Accepts temporary working visas, but not working holiday visas, temporary business visas and other ineligible visas. Your visa expiry date would need to be at least one month after the end of your loan term.
  • NAB. Temporary working visas accepted, but working holiday visas and student visas are ineligible.
  • St.George. A minimum of one year remaining on your visa at the time of application. Your loan term must not exceed the time remaining on your visa. Applicants with a visa on an extensive list can apply.
  • Westpac. A minimum of one year remaining on your visa at the time of application. Your loan term must not exceed the time remaining on your visa. Applicants with a visa on an extensive list can apply.

How can I increase my chances of being accepted?

Car loans for temporary residents are considered a high-risk endeavour for lenders. Once you have satisfied the eligibility requirements you can improve your chances of being accepted by considering the following factors:

  • Cash deposit. The greater the deposit you can offer, the greater your chances of success.
  • Proven savings. If you can show that your cash deposit is a result of your savings efforts while working in Australia, this will be more favourable to lenders than if your deposit was a gift.
  • Income level. Income of $50,000 per annum or higher will put you in a good position when applying for a car loan.
  • Regular income. Lenders need to be satisfied that your employment is stable and your income is regular. In some cases, lower regular income will be more favourable than intermittent or seasonal income, even if it is higher.
  • Guarantor. If you can find someone who is prepared to go guarantor on your loan – to agree to be responsible for the loan should you default on the repayments – this will be looked upon favourably by lenders.
  • Australian bank account. Most lenders will want to see that you have an Australian bank account into which your income is deposited. Be prepared to provide bank statements for at least the last three months.

How do I submit my application?

You can usually apply for a car loan application online, even as a temporary resident. However in some cases you may need to apply at a branch so that you can provide your documents in person.

If you can apply online the application process might take a little longer as you send in copies of your visa information.

Rebecca Pike's headshot

"Even as a temporary resident, your credit score can be impacted when you apply for credit. Making too many applications within a short period of time can negatively affect your credit history – and considering temporary residents have little to no existing Australian credit history already, this is something to really consider.
You should do the groundwork first to work out which lender could be the best choice based on your circumstances. Then, make an appointment to speak with a car loan officer at your chosen bank or financial institution."

Senior writer

Don't forget to get your car covered before you hit the road. If you aren't sure what cover to get, take a read of our car insurance comparison guide or if you are still unsure about what vehicle to buy, we have a car review section too!

Frequently asked questions about getting a car loan as a temporary resident

Thomas Stelzer's headshot
Written by

Publisher

Tom Stelzer is a publisher and writer for Finder, covering investing and cryptocurrency. He previously worked for Finder as a writer in Australia and the UK, covering things like personal finance, loans, investing, insurance as well as small business and business loans. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio

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6 Responses

    Default Gravatar
    RobNovember 6, 2019

    Hi, I am international student and I hold student visa (500 subclass). I would like to ask if I can find a chance to get car loan or not. I have scholarship and I get monthly income.
    Thanks

      Default Gravatar
      NikkiNovember 7, 2019

      Hi Rob,

      Thanks for your comment and I hope you are well.

      Yes, you are able to get a car loan while on student visa subclass 500. Essentially, it is the same as any other car loan or personal loan, except that lenders will impose additional stringent eligibility criteria. The requirements also vary on the type or age of car purchased with the loan.

      Also, your eligibility will depend on how many months are left in your visa. It will typically end at least three months before the expiration of your visa. In terms of credit score – since this is unavailable, lenders will place more emphasis on an applicant’s deposit, income and employment status.

      You can review the lenders listed on our page and you can read more about them when you click the MORE INFO. If you’d like to be redirected to their official page, please click the green Go To Site button. Know that this is where you will start the application process.

      I would suggest reading the part of our page saying “How can I increase my chances of being accepted?” To add to that, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

      Hope this helps and feel free to reach out to us again for further assistance.

      Best,
      Nikki

    Default Gravatar
    VENKATAJune 19, 2019

    I am on sub class 482 Visa. Can I buy a car on finance? I had arrived 3 weeks ago to Melbourne.

      AvatarFinder
      JeniJune 21, 2019Finder

      Hi Venkata,

      Thank you for getting in touch with Finder.

      Since we do not have the specific Visa type of who may apply for a car loan for a temporary resident, I suggest that you contact your chosen bank/lender to know the eligibility criteria like the Visa type. The lending criteria for a car loan for a temporary resident will vary between lenders.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    charlieDecember 5, 2018

    Hi im looking for a car loan! I have been in australia for 3yrs on a marriage visa in full time employment my permernent residency has not been processed due to back logs!

      AvatarFinder
      JohnDecember 10, 2018Finder

      Hi Charlie,

      Thank you for leaving a question with finder.

      You are on the right page to see a list of lenders that could assist. Please scroll down to “How do I know if I am eligible for a car loan?”. This should give you an overview of what banks you could reach out to talk about taking out a car loan. Hope this helps!

      Cheers,
      Reggie

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