Car Loan on Bridging Visa? Here's How You Can Secure It

As a holder of a bridging visa in Australia, you may find yourself needing a car to navigate daily life and employment opportunities. However, securing a car loan on a bridging visa can be challenging. Understanding the requirements and options available can significantly improve your chances of approval. In this guide, we will explore how you can obtain a car loan on a bridging visa and what factors you need to consider.

Understanding Car Loans for Bridging Visa Holders

A bridging visa is a temporary visa that allows you to stay in Australia while your application for a more permanent visa is being processed. While it offers essential legal status, it often comes with financial uncertainty, making lenders cautious about approving loans. However, with the right approach and information, it is possible to secure a car loan even on a bridging visa.

Rates, Requirements, and Options

When applying for a car loan on a bridging visa, you need to be aware of the specific requirements and available options. Here's what you should know:

Interest Rates: Interest rates for car loans can vary significantly depending on your financial circumstances and the lender. As of 2026, rates typically range from 6.49% to 12%. Your rate will depend on factors such as your credit score, employment stability, and the lender's assessment of your risk.

Eligibility Criteria: To qualify for a car loan, you'll generally need to meet the following criteria:

• Stable income source, preferably full-time employment
• Proof of residency status and visa details
• Good credit history
• Valid Australian driver's licence
• Ability to provide a deposit, usually around 10% of the car's value

Working with a mortgage broking company like Esteb and Co, which has access to a panel of 83+ lenders, can help you find a lender willing to consider your application.

How to Apply for a Car Loan on a Bridging Visa

Securing a car loan on a bridging visa requires careful planning and preparation. Follow these steps to enhance your chances of approval:

1. Assess Your Financial Situation: Ensure that you have a stable income and can afford the monthly repayments.
2. Check Your Credit Score: A good credit score improves your chances of loan approval. You can obtain a free credit report to check your current standing.
3. Gather Necessary Documentation: Prepare documents like proof of income, visa details, and any other financial documentation required by lenders.
4. Choose the Right Lender: Work with Esteb and Co to identify lenders who are more likely to consider your application.
5. Submit Your Application: Ensure your application is complete and accurate to avoid delays or rejections.
6. Consider a Co-signer: If possible, have an Australian citizen or permanent resident co-sign your loan to improve your approval chances.

Tips and Considerations

Here are some expert tips to keep in mind when applying for a car loan on a bridging visa:

• Build Your Credit History: If you have limited credit history in Australia, consider taking steps to build it, such as applying for a low-limit credit card and making regular payments.
• Provide a Larger Deposit: Offering a larger deposit can reduce the lender's risk and improve your approval chances.
• Budget Wisely: Ensure your loan repayments are within your budget to avoid financial stress.
• Stay Informed: Keep abreast of changes in visa regulations and how they might affect your financial situation.

Frequently Asked Questions

1. Can I get a car loan on any type of bridging visa? It depends on the lender's policies. Some lenders may require specific visa types, while others may be more flexible.
2. Do lenders offer different rates for bridging visa holders? Yes, rates can vary based on perceived risk, but working with multiple lenders through a broker like Esteb and Co can help you find competitive rates.
3. Is it necessary to have a co-signer? While not strictly necessary, having a co-signer can significantly improve your chances of loan approval and better interest rates.
4. What happens if my visa status changes? Inform your lender immediately, as it might affect your loan terms or approval status.
5. How long does the loan approval process take? The process can vary but typically takes a few days to a week, depending on the completeness of your application and the lender's processing times.
6. Can I refinance my car loan if my visa status changes to permanent residency? Yes, once your status changes, you may be eligible for better loan terms and can consider refinancing.
7. Are there any fees associated with car loans for bridging visa holders? Fees can vary by lender and may include application fees, establishment fees, or early repayment fees. Always check the full fee schedule before committing to a loan.