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Lending for borrowers overseas - What you need to know

The change in policy for the banks lending to overseas borrowers has been big news in the past few weeks. In this post we're going to clear up a few misconceptions and give an indication of how the bank's policies have changed in reaction to recent events.

If you'd like some background on why these changes have been made, stuff.co.nz has a great article which you can read here.

The good news is that if you're a Kiwi living offshore you can still buy property in New Zealand. There are just a few extra conditions which we can guide you through to find you the lender that suits your personal situation the best.

There is a common misconception that the rules only apply to borrowers without NZ residency but in fact the policy relates to these people as well as Kiwi's living offshore.

Here is a summary of changes from the major banks. Each bank has a slightly different interpretation but these are the common conditions across all lenders.

  • Maximum lending 70% of property value
  • Only salaried income from overseas will be used
  • Overseas income for non NZ residents cannot be used in most cases
  • Borrowers must have an intention to move to NZ permanently
There are a number other minor conditions which can be easily met but these are the key things to tick off as we can work through the remainder for you.

If you are living overseas and would like to buy property in NZ we've got a process which can make this as smooth as possible for you and ensure we find the right lending product to fit your situation.

If you'd like to discuss how these changes effect you or someone you know, feel free to share this article or get in touch.

We look forward to talk to you soon

Adam, Claire and the My Mortgage Team