Hi all
Im an Australian resident and am looking to buy an investment property in NZ. Are there any barriers in getting a mortgage to buy over there, ive done plenty of reserch into which kind of property i would like to buy, now i need to get serious and start looking at the finances.
thanks.Your best option is to speak to Westan, Minimogul or Castledreamer – there gurus in the NZ market.
From my experience, there aren’t that many barriers – there easy to eliminate. Most likely, you’ll need a NZ institution to finance you as most banks here will not lend you for international property.
Kind Regards,
Geo.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Hi Pgrim,
There is no problem in getting loan from here for NZ property. Yes not all lender here in australia will lend for NZ properties . I got some lenders who are happy to lend for NZ properties.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]NZ loans and pre approval from 7.99%
There are a number of NZ lending institutions that offer finance to non-NZ residents.
Max LVR is 80% to 90% LVR, depending on the lender and the location of the property, the NZ property is held as security over the loan.
Information required on the loan application include, assets and liabilities, employment details etc, borrowing in a Trust is usually ok.NZ lending Institutions will check your credit file? Income from Australian investments can be included towards serviceability on the NZ loan application, rental assessments will also be taken into account when assessing serviceability over the loan?
Recently a Low Doc product has been made available to non-NZ residents, conditions apply.
Valuations are required in most cases,
You may be required to have an NZ power of Attorney.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi,
I am in a similar situation. I am in the process of buying my 1st IP in NZ which I did with a NZ loan with 20% cash deposit.
I amcurrently researching tapping into 200k equity on my owner occupied Sydney mortgage. St George have said I can do this with a line of credit (LOC). Set up fees would be about $300 + mortage stamp duty of about $500 on $100000 loan (I think). They said they would lend me, on a LOC, up to approx. 100k.
Does this sound like a winner or are there better options out there? One for the mortgage brokers I guess.
Regards,
Tim.Hi Tim,
Using equity available from OZ for deposits is fine.
A LOC is not the only product to consider when pulling out equity,
depending on your circumstances & current loan structure there may be other options that are more beneficial to you.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi pgrim,
I would strongly suggest that you use a NZ Bank. I wouldn’t do it with an Australian because of currency complications and problems with always bringing money back into Aust to pay the loan.
The few people that I have spoken to who have used Aust finance are regretting it now.
Good luck, it shouldn’t be too hard. There are a lot of brokers here who can arrange NZ finance.
Regards,
Del
Passionate about NZ +ve cashflow property!!! We can source property for you for a fee. Send me your email address to join our database to receive great NZ property deals!!
So then, just to clarify things, what are the benefits of choosing a NZ bank over an Australian bank? Or perhaps even, what are the advantages of having an Australian bank over a NZ one?
What kind of currency complications are you talking about please Del?
Cheers,
Ali G
I know one benefit for me with an Australian loan for a NZ property is that in Australia I can get 6.67% whereas I have just fixed a NZ bank loan for 3 years at 7.75%,
The disadvantage of the Australian loan is that to service my debt I need rent payments from NZ. This will most probably mean doing a small international transfer from NZ to OZ about once a month which means losing money on the ForEx as well as fees.
However for me at this point having an Australian loan is the only way I can buy a 2nd NZ property.
Regards,
Tim.All my NZ investor clients are financed through NZ lending institutions, the benefits are, finance is secured against the NZ property, and only the deposit is sourced from an Australian lender, usually from equity held in Australian based assets.
One advantage in using an Australian based lender would be the lower rates, but this method would involve using a greater portion of your Australian equity to secure the finance.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Normally you submit the application here but these lenders here got their branch in NZ and you get money from NZ lender only. But if you have some questions etc you don’t have to ring NZ instead you can contact OZ branch which is very good for investors.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]NZ loans and pre approval from 7.99%
Thanks for the info guys.
Cheers,
Ali G
Hi Ali,
I actually would recommend getting pre-approval and borrowing in NZ not Aus. then go shopping! Yes, Aus is a lower rate, but many of the gurus (like Dolf de roos) recommend borrowing in the same country because it’s a hedge against currency fluctuations.
also pre-approval anecdotally from many clients seems to be less strict on where and what you buy than finance on a deal by deal basis.
joy to the world
Other than deposit (which you can borrow here or put cash) you will be borrowing in NZ doesn’t matter if you fill you application here in OZ or in NZ.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]NZ loans and pre approval from 7.99%
wait a little I feel prices may come down as interest rates keep going up over here
You must be logged in to reply to this topic. If you don't have an account, you can register here.
