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Thread: Mortgages for people moving to NZ?

  1. #1
    adstarr is offline Junior Member
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    Default Mortgages for people moving to NZ?

    Hi all
    My boyfriend and I are thinking of applying to come to New Zealand (from the UK) at some point in the next couple of years. We're openminded about whether this is a permanent move or if we'll stay for a few years and then come back to England, and we're not sure whether we'd be on a skilled migrant worker residence permit or if we'd just begin on a 3-year work permit.
    My initial feeling was that it'd be best to rent out our house in the UK while we're away (despite the agency costs we'd have to pay), and rent a house in NZ. However I've been looking at the real estate websites and I've realised that if we sold our house in the UK, we'd almost have enough to buy a (cheap) house in NZ outright! This got me wondering whether this would be a better option than renting, but I'm wondering if anyone can tell me anything about mortgages for people moving to NZ - is it possible to get a mortgage if you're not a permanent resident/NZ citizen? I've searched online but I can't find out any info on it. Any advice/pointers on this or any other property issues would be much appreciated, so we can try and decide what would be best for us to do. Thanks!

  2. #2
    TanyaJ is offline Member
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    Sorry, I dont know the answer to your question. I just wanted to say it seems that renting is the "cheaper" option by far from the investigation I've done.

    When we investigated buying it seemed that mortgage costs would be double our rent for the lowest priced houses on the market.

    If you were buying outright though would you need a mortgage? Wouldnt it be a cash sale?

  3. #3
    adstarr is offline Junior Member
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    If the real estate websites I've looked at are anything to go by, we'd only need a small mortgage, like maybe $10-20k.
    The thing is, if we rented out our house in the UK, the rent we'd receive wouldn't cover the mortgage we're paying on it, plus we'd have to pay an agency to manage the rental while we were away, so we'd end up paying rental on a house in NZ plus about $250 a month on our house in the UK. If we sold our house we'd have about $100k to spend on a house in NZ, so I'm wondering if that might be the better option, provided we can get a mortgage. Houses are WAY cheaper to buy in NZ than in the UK.

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    TanyaJ is offline Member
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    Is that $100k NZ or 100K Sterling?

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    Cliff's Avatar
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    Real estate here in NZ is Slow right now with a capital S. Renting is the better option in the short term for your money. Can you sell your house in the UK or is it slow there too? You should evaluate if it will have more appreciation value for your money to keep your existing house. You can always sell the house in the UK in future if you decide to stay in NZ longer term. Renting will give you greater flexibility for moving around here.
    Cheers

    Cliff

    Nelson, New Zealand
    NZ Citizenship in 2000, been in NZ 15 years now
    Arrived NZ in 1997 from Las Vegas, Nevada, USA

    "New Zealand isn't just a physical place it is a state of mind."

  6. #6
    adstarr is offline Junior Member
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    Like I said in my post, I wouldn't be coming to NZ for another couple of years, so there's no point thinking about the housing market right now since things will probably have changed by the time I'm thinking about moving. I'm not so much looking for advice on whether or not to buy, I just need an answer to my original question about mortgages.

  7. #7
    Maggiemoo's Avatar
    Maggiemoo is offline Senior Member
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    Just had a quick search on t'internet for info on mortgages for overseas residents and found this:

    Real Estate New Zealand

    Not sure whether this is current info, but it looks like you CAN get a mortgage if you don't have NZ residency. We certainly bought our plot of land that we then built our house on before we had residency, but we bought it outright with capital from the sale of our UK house. We did have residency by the time we took the mortgage out to pay for part of the building of the house. I do know that the current mortgage rate in NZ is significantly higher than in the UK, so you may want to take this into account, especially if you are going to be paying the mortgage with kiwi wages. Some houses may seem cheap, but you should be aware that some of the building standards and requirements aren't quite , how shall I put this, the same as you may be used to - we were seen as slightly eccentric for wanting decent insulation, double glazing and heating/cooling systems in our new build house!! I think that new legislation is being put into place to ensure that all new houses do meet stricter requirements for such things from now, which should improve housing stock. I was shocked by the state of a lot of the houses we saw.

    Hope this is some help,

    Maggie

  8. #8
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    We have applied for a NZ mortgage whilst still in the UK. No mention has been made about our PR status but they have needed evidence of our earnings & possible outgoings whilst in NZ so that they can lend us an amount we can afford. Just contact the banks and they may be able to answer your questions. I found them very helpful.
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  9. #9
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    If you look at the bottom of this page it says..

    Ease of Ownership

    Purchasing and owning an investment in New Zealand is as easy as owning one in the UK. The legal systems are very similar and New Zealandís regulatory structure is supportive of residential property investors. An overseas investor can also obtain finance of up to 80 per cent on a New Zealand investment property.


    An overseas investor wouldn't necessarily have residency in NZ, but, it appears, can still get finance to buy property there, so I wonder if the same would apply to you.

    You're right that there isn't much on the Net about this. Lots of other stuff but nothing that comes out and says whether you need to have PR or not.
    Mother Bear

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