Can a Kiwi use NZ inherited property as a deposit to buy a property in Australia?

Any general questions you might have in regards to loans and finance.
pAppON
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Joined: Tue Mar 20, 2018 9:26 pm

Can a Kiwi use NZ inherited property as a deposit to buy a property in Australia?

Postby pAppON » Mon Jul 23, 2018 5:53 pm

Hi Home Loan Experts.

We’re NZ citizens and are planning to move to Melbourne. We want to buy our first home in Australia. I’m a lecturer at the University of Auckland and starting at the University of Melbourne next month.

I don't’ have much deposit of my own. I have inherited a property from my mother in Auckland in 2015. Can I use it as a deposit for my home loan?

It would be great if you could tell me in brief about the process of applying for a home loan in Australia for an NZ borrower?

Hope to hear from you soon.

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Otto Dargan
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Re: Can a Kiwi use NZ inherited property as a deposit to buy a property in Australia?

Postby Otto Dargan » Mon Jul 23, 2018 6:30 pm

Hi pAppON, Welcome to the forum.

New Zealanders may be able to take out a New Zealand citizen home loan.

The reason for that is they are granted a Special Category Visa (SCV) and lenders will treat you as an Australian resident for a mortgage. And if you are living and working in Australia, then some lenders will allow you to borrow up to 95% of the property value. Please note that the amount that you can borrow, and the lenders that may lend to you may vary depending upon your situation.

Additionally, in 2016, the Government introduced a FPAD (foreign purchase additional duty) for foreigners that want to buy property in Australia. As NZ citizens are granted SCV visa, which exempts them from having to pay the stamp duty surcharge which applies in New South Wales, Victoria, and Queensland, South Australia and Tasmania.

Yes, you can use your inherited property as a deposit. You can speak with a bank in NZ and can extract the equity out of that property and use it as your deposit for purchasing a property in Australia. Bear in mind that banks are tough on loans upwards of 95% of the property value so showing that the inheritance is not refundable is crucial.

Please call us on +61 2 9194 1700 and one of our specialist mortgage brokers will help you to get approved.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

pAppON
Posts: 9
Joined: Tue Mar 20, 2018 9:26 pm

Re: Can a Kiwi use NZ inherited property as a deposit to buy a property in Australia?

Postby pAppON » Mon Jul 23, 2018 7:51 pm

Sounds great. Since this will be my first home in Australia, can I get first home owners grant?

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Otto Dargan
Mortgage Specialist
Posts: 7021
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can a Kiwi use NZ inherited property as a deposit to buy a property in Australia?

Postby Otto Dargan » Mon Jul 23, 2018 8:57 pm

Hi pAppON,

If you are a New Zealand citizen and are a first home buyer then you are eligible to get a First Home Owners Grant (FHOG).

FHOG can be very useful for first home buyers like you and can help you in reducing the deposit needed for the mortgage. Lenders will usually ask 10% of the purchase price as the deposit but with the grant, you have to provide only about 5% of the deposit.

However, the grant amount and the benefits can differ according to the state you are buying. Please refer to the State Revenue Office Victoria website or the first home buyer helpline to know the exact benefits.

You can even use the FHOG calculator to know how much grant amount you can receive.

Speak with one of our New Zealand specialists by calling us on +61 2 9194 1700 if you’re overseas or on 1300 889 743 if you’re in Australia or by completing our free online assessment form and discover how we could help you.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

pAppON
Posts: 9
Joined: Tue Mar 20, 2018 9:26 pm

Re: Can a Kiwi use NZ inherited property as a deposit to buy a property in Australia?

Postby pAppON » Mon Jul 23, 2018 9:47 pm

That is great news. I am definitely getting help from you guys. Thanks so much.


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