Buying a Home in Australia as an NRI or Permanent Resident: A Mortgage Guide

Australia is home to one of the largest Indian-origin communities in the world, and for many, buying property here is a major life milestone. Whether you're a permanent resident, a citizen, or an NRI with Australian income, navigating the Australian mortgage market requires understanding several key concepts.

This guide pairs with RemitIQ's free Mortgage Calculator to help you plan your purchase with confidence.

How Australian Mortgage Repayments Work

An Australian mortgage (home loan) works similarly to any amortised loan: you borrow a large sum from a bank or lender, and repay it with interest over a set term — typically 25 to 30 years.

Your monthly repayment covers:

1. Interest — what the bank charges for lending you money
2. Principal — the actual debt being repaid

In the early years, most of your repayment goes to interest. Over time, the balance shifts, and the principal reduces faster. This is amortisation.

Key Numbers to Understand Before You Apply

Deposit (Down Payment)

Australian lenders typically require a minimum 20% deposit to avoid Lender's Mortgage Insurance (LMI). With a 10% deposit, LMI can add tens of thousands of dollars to your loan cost.

Example on a $700,000 property:

• 20% deposit = $140,000 → No LMI
• 10% deposit = $70,000 → LMI premium of ~$10,000–$15,000

Interest Rates: Variable vs. Fixed

• Variable rate: Moves with the RBA cash rate. Currently competitive, but rises when the RBA tightens monetary policy.
• Fixed rate: Locked for 1–5 years. Useful if you expect rates to rise, but less flexible.
• Split loan: A portion fixed, a portion variable — the most popular structure for risk-averse buyers.

As of early 2026, variable rates from major banks range from approximately 5.5%–7.0% p.a. Use our mortgage calculator to model your specific rate.

Loan Term

Most Australian home loans are structured over 25 or 30 years. A longer term reduces your monthly payment but significantly increases total interest paid.

Try in the calculator: What's the repayment difference between a 25-year and 30-year loan on $600,000 at 6.5%? (Answer: ~$300/month difference, but ~$90,000 more interest over the life of the loan.)

Additional Costs NRIs and Migrants Often Overlook

Stamp Duty

This is a state government tax on property purchases, calculated as a percentage of the purchase price. It varies by state and is a significant additional cost.

• NSW: On a $700,000 property, stamp duty is ~$26,752
• VIC: ~$37,070 on a $700,000 property
• QLD: ~$12,850 on a $700,000 property (lower for owner-occupiers)

First-home buyer concessions may apply if you qualify.

Council Rates and Strata Fees

Budget for ongoing council rates (~$1,500–$3,000/year) and, for apartments, strata fees (body corporate), which can range from $3,000–$15,000+ per year depending on the building.

Home and Contents Insurance

Mandatory for most lenders. Budget ~$1,500–$3,000/year for a standard home.

Foreign Buyers: FIRB Approval

If you're not an Australian citizen or permanent resident, you'll need approval from the Foreign Investment Review Board (FIRB) before purchasing property. There is a FIRB application fee (starting at $14,100 for properties up to $1 million) and foreign buyers are generally restricted to purchasing new properties.

For permanent residents and citizens — including those who've recently moved from India — standard mortgage rules apply.

Planning Your Budget

Use the RemitIQ Mortgage Calculator to:

• Estimate your monthly repayment at different loan amounts and interest rates
• Compare the impact of different deposit sizes
• Include taxes and insurance for a realistic total monthly housing cost
• View a full amortisation schedule showing exactly how your loan balance reduces year by year

Buying a home is the biggest financial decision most people make. Run the numbers carefully before you commit.