Obtaining NZ Mortgage Finance for International Buyers

Obtaining NZ Mortgage Finance for International Buyers

If you need to borrow funds in New Zealand to purchase a property, you should be aware that different conditions will apply, depending on the status of your residency.

If you already have your New Zealand residency, then the only limits set by the banks will be based on your personal ability to service the loan, the security of the loan and the other usual criteria a bank may apply in offering mortgage finance.

If you are not currently a New Zealand resident, or an Australian resident, but are here on a Work Permit, mortgage lenders may require you to have a deposit of anywhere from 20% – 50% of the value of the property you wish to buy. If you are on a Work Permit, you may only buy up to 0.4 hectares (1 acre) of land without requiring OIO consent.

If you do not intend to become a New Zealand resident, but wish to buy a holiday home in New Zealand, banks will require at least the same level of deposit as above, and may even be a little stricter. As a non-resident, you can buy a property on up to 5 ha – 12.5 acres of land, as long as it is not waterfront or in a ‘sensitive’ area, in which case your purchase would require OIO approval.

Effectively, the less committed you are to living permanently in New Zealand, the less risk a mortgage lender will take with you.