Yes, you can do long as you can prove the source of the money is legitimate.
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How can I use loans to apply for an Australian 188 visa?
I am able to get a loan secured by my property from a bank in my home country. I want to use it to support my application for a 188 visa. Is this acceptable? I inherited the property from my parents and it would be very hard to prove the source of funds used to purchase that property.
Answers
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Inheritance in itself is usually not an issue so long as you are not in breach of Anti-Money Laundering (AML) laws, policies and procedures. You may wish to seek advice with bankers in and out of Australia.
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For Investor visas, the assets nominated for transferring must be legally acquired, unencumbered funds generated from qualifying businesses or eligible investments, and available to make the complying investment in Australia. The asset or property nominated for transferring must be free and clear of any encumbrances, such as creditor claims or liens. Usually, the lending banker will have a lien on the property, so it would fail to meet the above criteria. The inherited property will be accepted if the property at the time of nomination is held in your name, that is, you are having the total control over that property, and no other person has any claim over that property. This can be established by proof of actual transfer to your name, court orders, if any, and property registration documents. However, if the property was only recently transferred then, there needs to establish that the same was not done for satisfying visa purposes. Property held over a long time of period could be justifiable, as long as the ownership and control to sell and use the proceeds are established. As such issues are having complexity and differ from case to case, this needs to be consulted with an appropriate attorney and take legal opinion to confirm independent ownership rights before nominating that property for transferring to Australia for the visa purposes.
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Using a loan to fund a subclass 188 investor visa is strictly prohibited. There is a requirement for all investor visas that the funds are unencumbered. You may want to look at New Zealand as the Investor 1 (NZD$10m) investor visa can use loans provided they're secured against assets you own. In any case, you should discuss your circumstances with a registered migration agent. You will have challenges with the subclass 188 Investor (AUD$1.5 million) as this requires the funds to have been earned through investment or business activity - you can't inherit these funds or assets. However, for the subclass 188 Significant Investor Visa (AUD$5m), you can use assets that have been inherited.
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