FAQs for International Property Buyers Seeking Lending in New Zealand
Jan 21, 2025
Whether you're a Kiwi living abroad, an Aussie eyeing a smart investment, or a global citizen drawn to New Zealand’s lifestyle, the path to buying property here comes with a few extra steps. But it’s far from impossible.
We’ve pulled together the most common questions we get from international buyers - covering everything from visa eligibility to deposit sizes, using overseas income, and what you can (and can’t) buy under New Zealand law.
1. Can I get a mortgage in New Zealand as a non-resident or overseas buyer?
Yes, some New Zealand banks do consider applications from non-resident or overseas buyers, but strict conditions apply. Typically, you must meet specific criteria regarding visa status, deposit size, and income verification. Some lenders restrict lending only to permanent residents or citizens.
2. What visa types are eligible for home loans in NZ?
Eligibility varies, but most banks will only lend to:
NZ citizens and permanent residents
Australian citizens and permanent residents living in NZ
Visa holders on work or investor visas with strong ties to NZ (subject to conditions)
3. What kind of deposit do I need as an international buyer?
A larger deposit is generally required for non-resident buyers—often 30% or more. This is due to both lender policy and Reserve Bank of NZ rules on loan-to-value ratios (LVRs).
4. Can I use overseas income to apply for a mortgage in NZ?
Yes, but it must be verifiable and typically from a reputable employer or business. Income will usually be scaled down to allow for exchange rate and stability risks (e.g. only 80% of overseas income may be used).
5. Will I need a New Zealand bank account?
Yes. Most banks require a NZ-based transactional account for repayments and for managing deposits, often with proof of income being credited there.
6. What documentation do I need to provide?
Expect to provide:
Passport and visa documentation
Proof of overseas income (e.g. payslips, tax returns)
Bank statements
Proof of deposit source
A sale and purchase agreement if property is already selected
7. Are there lending restrictions for buying investment properties?
Yes. If you’re not a New Zealand citizen or permanent resident, you typically can’t buy existing homes for investment purposes under the Overseas Investment Act. New builds or developments may be exempt.
8. Can I apply for a home loan before I move to NZ?
Some lenders may offer conditional approvals or pre-approvals for buyers planning to migrate, provided sufficient income and deposit evidence is presented.
9. What is the minimum and maximum term for a home loan?
Loan terms range from 5 to 30 years. If you're over 60, lenders may require an exit strategy for repayment, especially if the loan term extends beyond age 70.
10. Can I get interest-only lending as an international buyer?
Possibly. Interest-only periods are available, usually up to 5 years, especially for investment or bridging purposes. Eligibility is stricter for overseas applicants.
11. What is the lending process like for overseas buyers?
The lending process involves:
Initial enquiry and eligibility check
Document submission and income verification
Conditional approval
Valuation and legal checks
Final approval and settlement
12. Will I need to visit NZ in person to complete the mortgage process?
Not always. Many banks accept digital signatures and remote identification via certified documents or video calls. However, final settlement may require lawyer involvement in NZ.
13. How is my borrowing capacity calculated?
Lenders assess your income, debts, credit history, and likely living expenses. If using foreign income, a discount is applied (e.g. 20%) to reflect currency and market risks.
14. Can I use gifted funds as part of my deposit?
Yes, but banks require a gift letter stating that the money is non-repayable, especially if you’re over 80% LVR.
15. Are there any tax considerations when buying in NZ as a non-resident?
Yes. You may be subject to:
Non-resident withholding tax on bank interest
Bright-line rules for property sold within 10 years
Potential tax in your home country
16. Do I need mortgage protection insurance or life cover?
Not legally, but it is strongly recommended. Some banks offer “compassionate care” cover that may assist with repayments in the event of death.
17. Which banks offer the best terms for international buyers?
Policies vary. Major banks like ANZ, Westpac, and BNZ offer options, but specialist lenders like Pepper may be more flexible for complex income situations.
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