Buying a House in New Zealand Before You Move Home

It’s a way to lock in a property while prices are right, avoid the stress of house-hunting on arrival, and have a home waiting when you step off the plane. But lenders, regulators, and logistics all make pre-move property buying more complex. Here’s what you need to know before committing.

Why Some Kiwis Buy Before Moving Home

Buying ahead of time offers clear advantages:

• Secure a property before prices shift or listings tighten.

• Simplify relocation—your housing is already sorted.

• Establish roots or investment ties early.
  But it also means operating under the rules that apply to non-residents, with banks and regulators treating you as an overseas buyer until you’re physically back in New Zealand.

Legal & Ownership Eligibility

Even if you’re a Kiwi, the Overseas Investment Act (OIA) can still affect your purchase if you’re living offshore. Until you’re “ordinarily resident” in NZ, your purchase may be classified as an investment, not an owner-occupier home. That means:

• You may be subject to foreign-buyer restrictions on some residential land.

• Lenders and legal advisers may treat you under the same risk category as non-resident investors.

• Investor-class or high-net-worth visas (NZ$5 million +) have some exceptions, but those are narrow and specific.
  Always confirm OIA eligibility early through your lawyer—getting this wrong can stall settlement or even void a contract.

Which Lenders Consider Pre-Arrival Buyers

Not all banks lend to returning Kiwis while they’re still offshore. Some have tightened policies around foreign income and risk exposure.

• Major banks: increasingly conservative; may require you to prove intent to live in the property within a specific timeframe.

• Specialist lenders: such as iLender or Approved Mortgages, still accommodate expats but typically require higher deposits and more documentation.

• Broker guidance: an experienced NZ broker can identify which lenders currently accept offshore applicants—this changes frequently.
  Expect stricter servicing tests and longer approval timelines than local buyers.

Deposit, LVR & Structuring Requirements

Because you’re buying from overseas, banks usually treat the purchase as an investment. That triggers higher deposit requirements and lower loan-to-value ratios (LVRs).

• Typical minimum deposit: 30% for returning Kiwis abroad.

• Some lenders will stretch to 20% only if the property is clearly intended as your primary residence or a new build.

• Transferring income or assets into NZ or proving imminent relocation may help loosen policy.

• Equity from other properties can be used, but the usable portion may be discounted.
  Plan to show a clean source of funds and be ready for AML checks on any offshore deposits.

Using Overseas or Future NZ Income

Banks will only use overseas income once converted to NZD and scaled down—usually 80–90 % of the converted value—to account for exchange-rate risk. Income from stable currencies (AUD, USD, GBP) is treated more favourably than volatile ones.
You’ll need:

• Proof of overseas employment and payslips.

• Tax returns or verified income statements.

• If you’ve already secured a NZ job offer, that contract can dramatically improve your lending outcome.
  Without solid proof of ongoing or future NZ income, most banks will cap your borrowing power or decline outright.

Pre-Approval, Conditional Offers & Timing

Getting pre-approval while offshore is essential to understand your limits and move quickly when the right property appears.

• Pre-approval gives you confidence to make conditional offers subject to finance.

• Include clauses allowing for delays or withdrawal if lending isn’t finalised.

• Hold some funds in NZD early to reduce currency-exchange risk when transferring your deposit.

• Align settlement dates with your planned return to avoid paying for an empty property or triggering investment-loan terms longer than needed.

Managing the Property Until You Arrive

Once you’ve bought, you’ll need a local support structure:

• Legal representation: a NZ lawyer or conveyancer to handle title registration, settlement, and compliance.

• Power of attorney (POA): to sign documents and settle on your behalf.

• Property management: if you plan to rent it out temporarily.

• Insurance and mortgage servicing: payments begin at settlement; ensure you can manage them remotely.
  If renting out before moving, understand your tax obligations and any OIA investment conditions.

Risks & Pitfalls

Buying remotely adds layers of complexity that can catch expats off guard:

• Currency volatility can change your deposit or income value.

• Delayed relocation means higher holding costs for longer.

• Employment changes may undermine your loan approval.

• Limited inspection access increases risk of property issues.

• Legal gaps (e.g. unsigned POA, poor witnessing) can delay settlement.

• OIA misclassification can derail registration.

• Timing mismatch—owning a property before arrival can stretch finances on both sides.

Smart Strategies for Success

• Work with a NZ-based mortgage broker who regularly handles expat cases.

• Transfer funds early or hold part of your deposit in NZ accounts.

• Secure a NZ employment contract if possible before applying.

• Pre-certify documents (ID, proof of address, income) and have them notarised or apostilled.

• Include finance and settlement clauses in your contract to protect against delays.

• Appoint a reliable POA or conveyancer to act locally.

• Where feasible, delay settlement until your arrival—unless market conditions make that impractical.

• Monitor changes to OIA or lending policy that could affect your approval.

Key Takeaways for Returning Kiwis

Buying a property in New Zealand before moving home is absolutely possible, but banks and regulators treat you more cautiously until you’re physically back. Expect higher deposits, tighter documentation standards, and longer approval times. Your success depends on solid planning, verified income, and having a NZ-based team—broker, lawyer, and property professionals—guiding you through the process.
Talk to our advisers to discuss your pre-move buying strategy and find lenders that work with returning Kiwis.