Property
New Zealand — Property: Mortgage Availability
Overseas people generally cannot buy a house or land in New Zealand; citizens and permanent residents who meet the 'ordinarily resident' rules can buy without restriction, as can some Australian and Singaporean citizens. People on temporary visas, such as student, work or visitor visas, cannot buy or build a home, and other overseas buyers need Overseas Investment Office consent, with any sale agreement made conditional on consent. For people who can buy, the Reserve Bank's loan-to-value rules limit new lending to borrowers with small deposits: from 1 July 2024 the limits were 20% of new owner-occupier lending above 80% LVR and 5% of new investor lending above 70% LVR. Check the Reserve Bank's timeline for current settings and ask lenders about their own criteria.
Why this matters
Understanding mortgage availability is crucial for anyone planning to purchase or invest in property in New Zealand.
Key facts
- Overseas people generally cannot buy a house or land; citizens and permanent residents who are ordinarily resident can, as can some Australian and Singaporean citizens.
- People on temporary visas (student, work, visitor) cannot buy or build a home.
- Other overseas buyers need Overseas Investment Office consent, and the sale agreement must be conditional on consent.
- From 1 July 2024 the Reserve Bank's limits were 20% of owner-occupier lending above 80% LVR and 5% of investor lending above 70% LVR; check current settings.
Steps
- Researching Mortgage Options — Potential homebuyers should research and compare mortgage products offered by different banks and lenders, considering factors such as interest rates, fees, and loan terms. It's also essential to review and understand the lender's requirements and approval process.
- Meeting Lender Requirements — To increase the chances of mortgage approval, individuals should ensure they meet the lender's requirements, including a good credit history, stable income, and sufficient equity. They may also need to provide additional documentation, such as proof of income and employment.
Common mistakes
- Signing an unconditional sale agreement as an overseas buyer — it must be conditional on Overseas Investment Office consent.