Several hundred thousand Kiwis live and work overseas, with many wanting to buy something ‘back home’ or refinance their existing property in NZ.
We have assisted many Kiwis over the years, in purchasing or refinancing property in New Zealand, with customers living in many different countries including Australia, America, the UK, Japan, Taiwan, Singapore, Hong Kong, Dubai and other locations around the globe.
The Reserve Bank in New Zealand governs the loan to values and other legal requirements for property finance, whilst Lenders vary significantly in how they treat overseas income.
Even if you are PAYE in Australia, some Banks in NZ will nearly halve your income for servicing purposes, whilst others will use 100%, as if you are in New Zealand.
Overseas Self Employment can be another challenge, so it pays to check out what can be done to assist you, before setting your heart on a property to buy, or for refinancing.
Here are the basics to set the scene, but of course there may be exceptions, so please get in touch to check out your situation and personal requirements.
The Rules…
As a rule, the minimum deposit to is 30%.
This is the same as if you are in New Zealand and wanting to buy an investment property.
There are a couple of exceptions where a Bank may only require you to provide 20%. Mainly this would be for a new build purchase, or if you ‘fly in and fly out’ as part of your job and so the property is more owner occupied than deemed to be an investment property.
By Settlement you would need to have a New Zealand bank account and IRD number and if you are buying as a rental, you need to have an ‘agent’ in New Zealand to manage the property.
This can be a relative, although most customers tend to engage a Property Manager.
Lenders…
This can be a bit of a mine field, as each Bank and Non-bank have different policies with regard as to how they treat overseas income.
At iLender we know from experience who will do what and on what terms, so that we aim to make the process as easy as possible.
Most Lenders use 80% of the rental income when calculating servicing, which can make a big difference as to what you can borrow.
An example of this is a recent customer working in Europe on a large salary was declined by their Bank as their high living costs matched their income, so there was little surplus available. They did however have two existing rental properties in New Zealand and the rental income from these, coupled with the new property and decent deposit, meant we were able to get another Bank to approve their Mortgage without factoring in the European income and expenses.
Whatever your situation and requirements please get in touch and our team will let you know what can be done quickly and with the minimal of fuss.
Email: [email protected] or [email protected]
Australia: 1800 016744
NZ: 0800 537337
UK: 0800 1026224
We look forward to helping you!
