New Zealand Banks and institutions are generally happy to provide mortgage/bond finance to overseas investors, using the property they are purchasing in New Zealand as collateral.
They will factor in the rental income in considering required deposit levels. Deposit levels will vary from time to time as will rates, but mortgage rates are generally competitive.
Mortgage rates in New Zealand are currently sitting around 6% per annum but vary by bank and type of mortgage.
Deposit requirements are generally between 20% to 30% for overseas investors with the bank providing a bond (mortgage) for the remaining 70% to 80%. This finance is available for up to a 30 year term.
Properties can be through a variety of mortgage types. You can deal directly with a bank of your choice or alternatively through a mortgage broker who receive a commission from the bank you choose to borrow from – it costs you nothing. In addition a mortgage broker will be able to offer you non-banking finance from a number of financial institutions. The New Zealand banking system is sophisticated, offering you internet banking facilities both for monitoring your finances and transacting transfers.
Mortgage brokers can also arrange insurance for the property for you. Specialist landlord insurance packages are available.
Bank requirements will normally include a copy of your driving licence or passport, three pay slips or recent tax return, three months transactional current account statements and proof of deposit funds.