Mortgages

Notes for property purchase in New Zealand

Mortgages overseas Lenders in New Zealand do not recognise self cert or non status loans and your home loan application will need to be supported bythe following; if you are self employed you will need to supply copies of at least the last two years audited accounts.

You will also need to supply copies of both your last 12 months business and at least 6 months personal bank statements. If you are employed you will need to produce copies of at least the last three month's pay slips as well as copies of your last 6 months personal bank statements.

The loan will be offered only on your net or 'take home' pay and is calculated further on your ability to pay for your existing liabilities such as credit card bills and loans. Your New Zealand lender will want to feel confident that your existing financial committents that includes you current mortgage repayments and any other bills will not total more than 35% of your monthly net income.

New Zealand lenders will not take into account any rental income on the property for mortgage calculations. You should always try to arrange finances before agreeing to purchse a property. If you are planning on buying a new home you should find out the date the property will be registered in your name as the lender will not lend on the security of the property until it has been registered.

 

If you are hoping to secure stage payment funding the land must be bought by you and from your own existing funds and should then be registered in your own names and definately not the developer's. This will enable the lender to obtain a legal charge against this and then they will be able to secure funds against it.

If this legality is not observed, then the lender will be unable to release any funds until the property is constructed and registered. This will generally mean upon total completion of the building works. If this is not possible, then when the building works are completed and the property finished, the developer must be able to provide the lender with the Certificate of Final Construction to release the funds.

All loans will be in New Zealand Dollars or UK Sterling.

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