90% finance is now available to Australian residents for purchasing NZ properties from a NZ lender. The standard risk insurer fee (about.80% of loan amount) applies.
Property restriction apply. As a gauge population over 10,000 and purchase price above $60,000.Welcome NZ Mortgage Broker
So this post isn’t construed as advertising why don’t you tell us more about the product (rates, fees, etc)?
Cheers
Stu
Thanks Stu,
Current interest rates are Floating 7.75%, Fixed 1yr 7.45%, 2yr 7.65%, 3 yr 7.75% 5yr 7.90%. Rates are subject to change. NZ rates in general are a little higher than Aust interest rates. Application fee $500. Lender will access 80% of rental income which is better than usual 75%. Each loan will be on its merit and lender is looking for loans where applicant can show good monthly surplus and reasonable asset position.Originally posted by NZ Mortgage Broker:and reasonable asset position.
Including Australian assets, or only NZ assets?
GP
All assets and I should say liabilities as well. Basically to show net worth.
Regards
TerryOriginally posted by NZ Mortgage Broker:Current interest rates are Floating 7.75%, Fixed 1yr 7.45%, 2yr 7.65%, 3 yr 7.75% 5yr 7.90%. Rates are subject to change. NZ rates in general are a little higher than Aust interest rates. Application fee $500. Lender will access 80% of rental income which is better than usual 75%.
There are lower rates available,
E.g. 7.25% to 80% LVR no fees, Trust is ok, 80% rental income, $50K minimum lend,Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi Steven,
interesting thread. I have a couple of questions, i.e. how do your lenders feel about the smaller towns? like under 10000, and 5000? Will they still lend there but just at a higher LVR? Do they cross collateralise if properties are under 50K or just not lend at all? How would they feel about a town of 1500 that is 30k from a major city? And is all this available as a line of credit? And/or Lo Docs i.e. self employed?cheers-
Minijoy to the world
Hi Steven, Yes there are rates around at 7.25% or less for 80% LVR. This product is from one lender and that is their rates. It is the only product I know of in NZ for 90%LVR to Australian borrowers.
Regards
TerryInner city apartments in Auckland- there is a large number of smaller type apartments coming on to the market. These were for students mainly but overseas student numbers have dropped off and there will be a surplus. Rents have dropped in this area for a 1brm or studio at around $280 pw.
Still not a bad return on purchase price but problem will be filling them. Also off the plan purchases are likely to be too high and realist value will be $20k lower than purchase price. In saying this there appears good demand for quality apartments 2 bedroom plus from owner occupiers. These are still increasing in value but there is a slowing of the market.
Regards
TerryHi Terry
As soon as you can show 20% equity in the property, will this lender reduce the interest rate to the 80% LVR rates?
Good to see a lender over there actually going to 90% for a change though.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi NZ Mort Broker
Mini asked:
interesting thread. I have a couple of questions, i.e. how do your lenders feel about the smaller towns? like under 10000, and 5000? Will they still lend there but just at a higher LVR? Do they cross collateralise if properties are under 50K or just not lend at all? How would they feel about a town of 1500 that is 30k from a major city? And is all this available as a line of credit? And/or Lo Docs i.e. self employed?
cheers-
MiniCan you address her questions for us, as I and many of my fellow investors will also share these questions and are interested in your response.
How quickly can your brokerage firm take a client from new application to preapproval – assuming a property under contract, and a basic application with PAYE earner owning home and a few investment properties already? Oh, also buying in Family Trust name.
Cheers
CDCastleDreamer
HI NZ Broker:
Just another question that you might have come across before.
How in reality would it work to get new mortgage from a New Zealand lender/s ? i have quite a bit of equity on my haoses in Australia, would i be able to use my equity on purchasing a property in NZ? and under what terms and conditions?i would greatly appriciate your reply on that.
Regars
Hirad
Originally posted by MiniMogul:Hi Steven,
interesting thread. I have a couple of questions, i.e. how do your lenders feel about the smaller towns? like under 10000, and 5000? Will they still lend there but just at a higher LVR? Do they cross collateralise if properties are under 50K or just not lend at all? How would they feel about a town of 1500 that is 30k from a major city? And is all this available as a line of credit? And/or Lo Docs i.e. self employed?cheers-
Minijoy to the world
Hi Mini,
Populations of 10000 to 5000 are normally OK,
I am not sure about 1500, if you give me the details I will check for you, There have been instances of a lower LVR of 70%/75% to get around this issue,Yes you can cross collateralise to get over the $50K minimum lend, I do have access to another lender with a minimum lend of $30K but their rates are higher,
Yes a Line of credit is available,and Australian Trusts and self employed applicants are ok, but unfortunately I’m still to find a lender who allow Low Doc loans for non NZ residents,
Appointment of a NZ Power of Attorney is also required,Kind Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Originally posted by The Mortgage Adviser:Geronimo, you can get 100% here. What is the big deal about 90%???
The Mortgage Adviser
[email protected]
Ph: 0414 347 771Comments made are of a general nature and should not be construed as advice to any particular individual.
Yes thanks Rob. The thread is about Aus residents purchasing property in NZ with NZ finance.
I personally would never use equity from Australia to purchase NZ properties outright. Just reduces your servicibilty here!
I would prefer to keep it separate, and while doing that 90% seems to be the best we can get in NZ.
Regards
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Geronimo, i believe credit reporting is reciprocal to nz’ers and aus’ers – does this impact on borrowing capacity when applying in nz for instance? (i’ve had nz applicants with credit issues ‘queried’ here in aus)
cheers
brahms
If you don’t ask, the answer is no!!
Hi Brahms
Just did a deal where an NZ couple had finance approved to buy a property here in Brisbane.
Then we found out after that they had a few bad debts in NZ so I guess it’s a question of whether you would want to declare it or not.
From their point of view it was an honest mistake because the application form asks for Assets and Liabilities here in OZ.
We will soon be able to check our client’s Baycorp in NZ too. So I guess it will only become an issue if there is a bad credit history as apposed to applications for credit.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Hi Guys,
one Bank I deal with in NZ required me to provide copy of Aus Baycorp report to them as part of my application. Another I am dealing with looks clearly at serviceability accross the entire holding Aus or NZ.90% lend in NZ will interest me shortly as that means that I have to provide less per property deposit from Australia, and with the exchange rate off a bit, and the cost of moving money around, 90% may well suit. Will be in touch soon!!
Cheers
CDCastleDreamer
Geronimo,
As soon as you can show 20% in the proeprty will the lender reduce its rate?No this is their standard rates. Some non bank lenders do have fixed rates above banks rates.
Terry
Mini, In regards to your questions
Smaller towns – each town is based on its merit-population, proximity to cities, type of industry in town, employment opportunities etc. Some banks just won’t lend but others may cross colateralise security.
Regarding town of 1500 people and 30km from major city you name them and I will find out.
A credit line would be available depending on lender but rememberin NZ floating rate is higher than fixed rate so may not be any advantage.
I think lo docs etc would be a problem as there type of loans are as security lend. Low value properties in small towns are higher risk wkich is reflected in the value to start with and higher rent yield.
Regards
TerryCastleDreamer,
Can get pre approval for purchase within a day or 2 of beings supplied with appropriate documentation. I would need an application, confirmation of income, loan repayment history 6 months and details of where own funds coming from.
Haven’t done family trust but would not forsee problems. Just need Trust deed.
Terry
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