Car Finance and Loans for 457 Work Visa Holders
Every year, many young professionals succumb to the lure of Australian shores, and it’s easy to see why. But once you’re here, you might find that you need reliable transport to see some of Australia’s most beautiful and remote places; not to mention getting to and from work.
Expats who are living and working in Australia on a Temporary Work Visa, also known as a 457 Visa, are eligible for car loans. However, the criteria that lenders place on these applications are usually more strict than those of permanent residents and citizens.
Car Loans and 457 Visa Restrictions
Here are a few tips for getting a car loan on a 457 Visa.
What do you need?
The most important factor for getting approved for car finance on a 457 Visa is that the loan term ends before the visa expires. A lender will not approve you for finance if they expect you to leave the country before you finish repaying the loan.
You should also be aware that the lender will only consider the current expiry date of your visa. The potential for an extension to your visa will not be taken into consideration by the lender.
Being on a Temporary Work Visa increases the level of risk for the lender, so it will likely be more difficult to get approval even if you have enough time left on your visa. You may also have a limited or no credit history in Australia, so lenders will need to look at other factors when determining the level of risk.
Some of the other application details that the lender will take into account include:
- How long you’ve been at your current job.
- How long you’ve been in Australia.
- How long you’re planning to stay in Australia.
- The type of job you’re in and your income.
- A cash deposit where appropriate.
Different lenders will have different requirements for 457 Visa holders, and some may not lend to anyone who is not a permanent resident or citizen. They will also assess each application on a case by case basis, so they may not have hard and fast criteria for lending to visa holders.
How to improve your chances of getting approved?
While it can be more difficult to get approved for a loan while on a visa, it is not impossible. Many of the variables that will affect your application outcome are dependent on your employment and income, which you probably won’t have direct control over.
Because of this, one of the best ways that you can improve your chances of getting approved for a car loan is to talk to a finance broker. They will be able to advocate the strength of your application to lenders on your behalf.
A finance broker will also have a better idea of which lenders are likely to accept and approve car loan applications from temporary visa holders.
Living and working in a foreign country is difficult enough as it is, getting help with your car loan application can simplify the whole process.