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New Zealand Mortgages
Q. How much mortgage can I have to buy a
residential property in New Zealand ?
It is important to
note, that
there are no non-status/self-certification mortgage facilities available in
New Zealand (although renting out your property is permitted), all loans
need to be supported by a minimum requirement of proof of income, i.e. if
employed - copies of your last three month's payslips & copies of your
latest P60/Employer’s Reference together with copies of your last 6 month’s
Personal Bank Statements will be required or alternatively if you are
self-employed - copies of your last two years Audited Accounts & copies of
both your last 12 month's Business and last 6 month’s Personal Bank
Statements will be required on application.
Unfortunately in New Zealand the New Zealand Lenders will NOT take into
consideration any proposed Rental Income from the property for mortgage
purposes/repayments.
Your loan is based on your joint net “take home” pay and is calculated on an
affordability basis. All your existing liabilities including any
mortgage/rent payments, personal and bank loans and any maintenance (i.e.:
Divorce) payments together with your proposed New Zealand mortgage payments
must not exceed 35% of your net monthly income.
New Zealand Mortgage Example:
Net joint monthly income £ 2,500 times 35% of that figure is £ 875 minus
existing monthly mortgage payment £ 300 – No other liabilities. This leaves
a balance of £575 for a proposed New Zealand Mortgage payment.
New Zealand Mortgage details:
·
Maximum loan to value 80%
·
Maximum term for a mortgage
in New Zealand is 25 years
·
£50,000 minimum mortgage
amount
·
New Zealand Dollars only
·
Repayment mortgages only
·
Rates from approximately
9.55% for variable rates or can be fixed for five years at 7.75%
details are subject to change, so you must check with your
broker on the link above before committing |
