1. Has been introduced by all the major banks, ANZ, Westpac, BNZ and ASB.
2. Restrictions are mainly for non NZ citizens or permanent residents who are relying on income from offshore to service the debt.
For NZ citizens or PR holders working abroad Westpac, will need at least 30% deposit or equity, BNZ will need 40%. BNZ will only use 60% of the overseas income. ANZ will not use overseas income unless the client is a NZ passport holder or someone who is buying a property to live in with a 30% deposit.
3. My feeling is that this will not affect the market too much as this type of lending will constitute a very small percentage of home buyers.
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
