Can I release equity from a property in NZ to buy in Australia?

Any general questions you might have in regards to loans and finance.
C Cairns
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Joined: Sun Mar 03, 2019 12:07 pm

Can I release equity from a property in NZ to buy in Australia?

Postby C Cairns » Sun Mar 03, 2019 12:08 pm

Hi HLE, I’m an NZ citizen looking to buy a Queensland property. Can I release equity from a property in NZ to buy in Australia?

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Otto Dargan
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Re: Can I release equity from a property in NZ to buy in Australia?

Postby Otto Dargan » Sun Mar 03, 2019 7:02 pm

Hello C. Cairns. Welcome to the forums.

Yes, New Zealand citizens can release equity in a property in NZ to buy in Australia, however, it will involve two separate home loans.
You will first need to release the equity in your NZ property by refinancing your mortgage.
This is something we cannot assist you with as our Australian credit license (ACL) only allows us to deal with lenders in Australia.

Once you’ve released the equityin your NZ property, we can help you get approved for a home loan in Australia with an Australian bank.

  • You can borrow up to 60% of the value of an NZ property.
  • You can borrow up to 80% of the value of an NZ home if you’re living in NZ.
  • Borrowing more may be possible with specialist lenders at a slightly higher interest rate.

Give us a call on 1300 889 743 (+61 2 9194 1700 if overseas) or fill in our free assessment form to find out if you qualify for a New Zealand citizen home loan.

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

C Cairns
Posts: 3
Joined: Sun Mar 03, 2019 12:07 pm

Re: Can I release equity from a property in NZ to buy in Australia?

Postby C Cairns » Tue Mar 05, 2019 12:12 pm

Yeah, that’s what I was thinking. Are NZ citizens exempt from paying the stamp duty surcharge?

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Otto Dargan
Mortgage Specialist
Posts: 7391
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I release equity from a property in NZ to buy in Australia?

Postby Otto Dargan » Tue Mar 05, 2019 1:55 pm

Hi C. Cairns,

When New Zealand citizens arrive in Australia, they’re automatically granted a special visa known as a Special Category Visa (Subclass 444).
This visa exempts you from having to pay the stamp duty surcharge or FPAD (foreign purchase additional duty) which applies in all states except for NT.

For example, if you’re buying a property in NSW, you need to be in the country for at least 200 days to be eligible to avoid the stamp duty surcharge.

To avoid the surcharge, it’s also important that you’re in the country at the time of settlement and contract signing.

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

C Cairns
Posts: 3
Joined: Sun Mar 03, 2019 12:07 pm

Re: Can I release equity from a property in NZ to buy in Australia?

Postby C Cairns » Tue Mar 05, 2019 4:14 pm

I’ll be contacting you guys after I’ve released the equity in my NZ property. I’ve been hearing that foreign citizens are only allowed to buy new properties. Is that true?

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Otto Dargan
Mortgage Specialist
Posts: 7391
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I release equity from a property in NZ to buy in Australia?

Postby Otto Dargan » Tue Mar 05, 2019 7:12 pm

Hi C. Cairns,

Other foreign citizens are required to buy a new property to comply with Australian legislation. However, NZ citizens are allowed to buy vacant land and existing properties as well.

We’re specialist mortgage brokers specialising in New Zealand citizen home loans.
Give us a call today on 1300 889 743 (+61 2 9194 1700 if you’re overseas) or fill in our free assessment form so one of our specialist brokers can get in touch with you.

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


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