Helping Offshore Kiwi's Buy In New Zealand

As New Zealand Citizens, and often residents, you are able to purchase from overseas without any additional processes. In this situation, you will be subject to the typical lending requirements where the lender will lend to 80% of the property value if you have intention to live in this property. Otherwise they will lend to 70% of the property value for investment properties.

On top of these lending rules, there are some additional considerations lenders take in ensuring you are able to service the loan from overseas.*Full lending criteria and some terms and conditions may apply.

Lender Policies:

Different banks and financial institutions have varying policies regarding offshore borrowers. You'll need to find lenders willing to work with international clients and that’s where as your Mortgage Adviser, we’re here to help.

Deposit Requirements: Some lenders may require a higher deposit from offshore borrowers. In some cases, it could be 30% or more of the property value.

Scaling your income:

You'll need to provide comprehensive documentation of your income and financial situation. This might include bank statements, tax returns, and proof of assets. Due to changing economic conditions and foreign currency, New Zealand lenders may scale your overseas income when you apply for a home loan. The scaling is to account for the currency exchange and the risk of future changes.

Currency Exchange and Costs:

Exchange Rate Risk: If you're deposit funds are in a foreign currency, fluctuations in exchange rates can affect your overall amounts required at time of settlement. You need to be aware of how this may effect your deposit amount.

Fees and Charges: Additional costs such as foreign transaction fees, loan establishment fees, legal fees, and potentially higher interest rates may apply for international borrowers. It is best to discuss with your mortgage advisor prior to progressing with the loan if you are unsure of any fees you may be subject to.

Legal and Tax Considerations:

Legal Representation: Engage with a local lawyer who specializes in property law to guide you through the process and ensure compliance with New Zealand laws. This will mitigate any risk by ensuring you are across all New Zealand laws when it comes to buying property while living overseas. Your lawyer will also be able to assist you throughout the process with any queries or concerns you may have.

Tax Implications: It's important to understand the tax implications both in New Zealand and your home country when it comes to buying a property. These will vary from country to country so it's always best to research these prior to applying for lending.

As mentioned above, it's fully achievable to purchase property in New Zealand as a Kiwi living overseas. Although, some parts of the process may be different to regular lending, as your mortgage advisor we will guide you through the journey, helping you navigate each step.

If you're looking for further information on your lending options when it comes to buying from overseas, please don't hesitate to get in touch or make an appointment.

Looking forward to hearing from you,

Fiona & Amy