Arranging Australian (AUD) Mortgages for NZ Residents
Historically, New Zealand citizens resident in Australia have been treated very much like Australian citizens and permanent residents by both the government and banks - hence, they have access in principle to first homeowner grants, stamp duty concessions where applicable and loan conditions which reflect those for Australian citizens and PR's.
During May 2015 however, Australian banks at the prompting of regulators considerably tightened lending access to both Australian expatriates and foreign investors - reducing the maximum loan to valuation ratios (LVR) applicable. Australian expatriates and permanent residents are now typically limited to loans of 80% of the property valuation, although a higher loan percentage may sometimes be available depending on the circumstances. A similar situation applies to New Zealand citizens resident in New Zealand, or elsewhere in the world, who will now typically be limited to a maximum loan of 80% of valuation, and consequently will usually need a 20% deposit plus purchase costs.
You will require the following minimum documentation to support any application, and in particular your ability to service the loan application.
- Your two most recent payroll slips
- Last three months bank statements from the account into which your salary is paid
- Documentation/statements in relation to credit cards, personal loans and savings accounts.
If you are self-employed, then additional information may be required from your accountant.
Just a note of warning in relation to capital gains tax (CGT), which does not exist in New Zealand, but which would apply to any investment property located in Australia which made a capital gain. We recommend professional tax advice in advance of any purchase, and note that anyone owning a property which generates rental income in Australia is required to submit an annual Australian tax return.
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