Our Comprehesive Guide to Buying Property in New Zealand as an Overseas Buyer

For many Australians, Brits, and expats, New Zealand property is a dream. With its stable economy, lifestyle appeal, and investment potential, it’s no surprise overseas buyers look here.

But the process is not simple. NZ law restricts who can buy, banks apply tougher rules to offshore borrowers, and the application process is slower and more demanding. This guide explains everything—eligibility, mortgages, costs, and strategies—so you can approach the process with clarity.

Can People Overseas Buy Property in New Zealand?

Who can buy freely

• NZ citizens and permanent residents

• Australian citizens and permanent residents (same rights as locals if living in NZ)

• Certain visa holders: residence-class visas, provided they’re “ordinarily resident” in NZ (living here, tax resident, holding NZ IRD number, and residing for 183+ days)

Restricted overseas buyers

• Most foreigners cannot buy existing residential property.
  
  

• Exceptions include:
  
  

  • New-build apartments or developments

  • Commercial property or large-scale land (OIO consent needed)

  • Investor visas, like the Active Investor Plus Visa, which allows qualifying HNWIs to buy or build one NZ home if combined with a significant business/property investment.

Key takeaway

Eligibility is nuanced—your visa, residency, and property type determine what’s possible. Always check OIA rules before committing.

Mortgage Options for Overseas Buyers

Deposit requirements

• Local buyers: 20%+ deposit.

• Overseas buyers: usually 30–40%.

• Lenders often require genuine savings—proven funds seasoned in your account for 6+ months.

• Crypto or opaque pooled family funds are rarely accepted.

Income verification

• Overseas income discounted by 20–30% to account for currency risk.

• Documents typically required:

  • Two years of tax returns

  • Recent payslips/contracts

  • 12 months of bank statements

  • Employer letters, if applicable

Lender pool

• Limited banks accept offshore borrowers.

• Non-bank lenders fill gaps but charge higher rates.

• A broker is essential to match income type, country, and deposit to a lender that will say “yes.”

The Application Process

Buying from overseas follows the same skeleton as locals but with extra layers.

1. Plan & Pre-Approval – Discuss goals, get initial eligibility check, and confirm whether your property type is permissible.

2. Document Submission – Provide ID, visa, payslips, tax returns, bank statements, proof of deposit source, and AML verification.

3. Conditional Approval – A bank provides an indicative amount, subject to valuation and due diligence.

4. Property Search & Offer – Offers may be via private treaty, tender, or auction. Note: auctions are unconditional and risky if finance isn’t finalised.

5. Due Diligence – Building inspection, LIM report, solicitor checks.

6. Valuation – Independent valuation arranged for the lender.

7. Final Approval & Settlement – Bank releases funds, solicitor completes handover.

Key Challenges When Buying From Overseas

• Currency risk: Income in AUD/GBP/SGD discounted for safety.

• Deposit source checks: Banks require full paper trails; unexplained or non-traditional sources are rejected.

• Visa status: The stronger your ties to NZ, the better your lending chances.

• Approval delays: Expect longer timelines due to offshore documentation and extra compliance checks.

Tax, Legal & Compliance Considerations

• Bright-line test: As of 1 July 2024, the Bright-line test applies only if you sell a property within 2 years of acquiring it. This simplifies an earlier, lengthier test of 5 or 10 years, depending on the property type or acquisition date.

• Withholding tax: NRWT may apply on NZ interest earned.

• Solicitor requirement: All buyers need a NZ solicitor to settle property purchases.

• AML/CFT compliance: Proof of funds and anti-money-laundering checks are mandatory. Non-compliance = automatic rejection.

• OIO consent: Required for restricted transactions, with fees and penalties for breaches (fines up to NZD $10k).

Costs to Budget For (in NZD)

Upfront:

• Legal & conveyancing: $1,500–$2,500

• LIM report: $290–$700

• Building inspection: $400–$800

• Registered valuation: $600–$1,000

• OIO consent fees: variable

Ongoing:

• Rates (council property tax)

• Insurance

• Body corporate fees (for apartments)

Regional Property Market Overview (2025 Snapshot)

• Auckland – ~$975k median. Gradual recovery, diverse property types.

• Wellington – ~$795k median. Prices softening slightly, value opportunities for returnees.

• Queenstown – $1.6m+. Premium market, popular with international buyers.

• Tauranga & Hamilton – Growth hubs with strong rental demand.

• Dunedin – More affordable, student-driven demand.

Buying Guidance for Specific Countries

Australians

• Widest lender acceptance.

• PAYG income straightforward, still discounted.

• Common: using AU equity for NZ deposits.

United Kingdom

• GBP income narrows lender options.

• HMRC documentation required.

• Strong returning Kiwi demand.

Singapore

• Complex due to multiple currencies/income streams.

• Smaller lender pool, but approvals possible.

• Popular with professionals relocating or investing in new builds.

Our Tips for a Smooth Approval

• Start paperwork early.

• Be realistic about deposit requirements.

• Use a specialist broker.

• Communicate promptly with bank/solicitor.

• Account for currency risk in your budget.

Case Studies

• Australian Investor: Leveraged Sydney equity, approved in 6 weeks for a central Queenstown holiday rental.

• UK Expat Returning: GBP income structured correctly → Wellington home for returning kiwi family.

• Singapore-Based Professional: SGD/USD mixed income accepted → new build purchase for long term investment.

Next Steps

Buying in New Zealand from overseas is possible—but it’s more complex than at home depending on your citizenship, visa, income sources and intended property type/use. But with the right preparation, lender strategy, and support, you can make it happen - and we're here to help you at New Zealand Mortgages!

Ready to see what you could borrow? Book a free lending scenario review with our team below.

Or dive deeper into our regional pages:

• [Australians buying in NZ]
  
  

• [UK buyers in NZ]
  
  

• [Singapore buyers in NZ]