Car loans for temporary residents

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 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 Compare	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 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 Compare	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 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 Compare	Special Offer: Until 16 January, eligible borrowers of an ANZ personal loan can get $250 cashback and $150 application fee waived. Terms and conditions apply.
ANZ Variable Rate Personal Loan 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 Compare	Special Offer: Until 16 January, eligible borrowers of an ANZ personal loan can get $250 cashback and $150 application fee waived. Terms and conditions 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.

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.

"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."

Rebecca Pike

Senior writer

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

• Can I get a car loan on a 482 visa?

  Yes, you would usually be eligible for a car loan on a 482 visa but you'd need to meet some specific criteria first. You would almost definitely need to prove that the loan term you're applying for does not go beyond your visa expiration date. This would be a major risk for lenders if you could leave the country before repaying the loan.

  Other criteria you may need to meet is earning above a certain salary, proving you're in stable employment and having a certain period of time left on your visa after the loan ends.

• Can I get a car loan on a working holiday visa?

  You will normally not be able to get a loan on a working holiday visa. Some lenders specify that you only need to be a resident for tax purposes, which can include working holiday makers, but you're still likely to be rejected upon application. Working holiday visas are so short and have limits on working rights, and so these are much more of a risk for lenders.

Written by

Thomas Stelzer

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