My loan got rejected – I live in Australia

by Sep 27, 2016First Home Buyers, Mortgages, Non-Bank Lending, Property investment

New Zealand home loan Living in Australia

Even if you’re a kiwi, if you live in Australia, New Zealand Banks will often reject your home loan application. Simply because your income is not local, you don’t meet their assessment criteria. Even if you have a stable income in a stable economy – it is not enough.

For example, you could be born and raised in Auckland, and at 25 take an accounting job in Sydney, Australia. You may be working at a respected firm like PWC, but because your income is not coming from New Zealand, the Banks deny you a home loan to buy into your home town of Auckland. This is a common situation many Kiwis living in Australia find themselves in. While this can be frustrating when you’re looking buy either a home or investment property in the Kiwi property market, there are other options.

Why did the Bank reject your loan application? 

It’s not an issue of not having enough income or deposit; it’s an issue of not having the right paperwork. Banks generally require income to come from New Zealand, so if you’re earning in Australia, you simply don’t have that paperwork.

How else can you get a loan? 

As you don’t have the required documentation to get a loan from a Bank when working in Australia, you can instead get a loan through non Bank lenders who accept earnings from overseas.

iLender offers up to 80% mortgages – available to Kiwis who are working in Australia. This can be for a rental in Auckland or an owner occupied in Wellington if the family are still in New Zealand whilst you are working overseas.

How is this possible? 

This is possible due to the two-tier lending system in New Zealand. The first-tier lenders are the Banks – such as ANZ Bank, ASB Bank, HSBC, Kiwibank, Bank of New Zealand, TSB & Westpac. They have strict regulations that limit them from lending to people who earn their income outside of New Zealand – even if they’re capable of meeting repayments.

Non Bank lenders may require less documentation and have easier criteria so can help you get home loans when the Banks reject your application. But not only can mortgage brokers, such as iLender, set up mortgages when you have limited financial documents, they can secure you mortgages when you have a lower deposit as well.

The opportunities available to kiwis living in Australia 

The property market in New Zealand has boomed over the past 3 years – increasing by 52% in Auckland. As it is expected to continue rising, especially in Areas like Wellington, Hamilton and Tauranga, kiwis in Australia don’t want to get left behind from the New Zealand property market.

If New Zealanders living in Australia are not in the property market, it may become increasingly difficult for them to return home, as housing prices may become unaffordable. However, if they have equity in the New Zealand property market, they can ensure they are not left behind.

This has seen many Kiwis living in Australia purchase investment properties throughout New Zealand. It allows them to continue working in Australia and investing their income back into New Zealand. And if a loan doesn’t fit your circumstance, iLender has plenty of other options available. We offer mortgages with lower deposits required than banks, interest only mortgage loans and first home mortgages. For those living in Australia iLender has a dedicated toll free number 1800 016744.

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

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