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Can a New Zealander apply for a home loan in Australia?

Posted: Thu Mar 21, 2019 6:58 pm
by TheoVon89
Hello,

I’m a New Zealander currently living in Kyoto, Japan where I’m working as a vocal coach for a famous music school. My contract expires next week, after which I will be returning to NZ for a few months. I will be working at my friend’s garage to stay afloat but my return will be short lived though, since I’m planning on buying a property in Australia by June. I was wondering if you could tell me just how much I can expect to borrow for a home loan in Australia. Any information would be appreciated. Thanks.

Re: Can a New Zealander apply for a home loan in Australia?

Posted: Thu Mar 21, 2019 7:08 pm
by Otto Dargan
Hi Theo,

Welcome to the forums.

As a New Zealand citizen living in NZ, some of our lenders will allow you to borrow up to 85% of the property value.

Although some lenders charge a higher interest rate to foreign nationals, we have a lender that can offer NZ citizens the same interest rates as an Australian citizen.

If you’re moving to Australia, you might actually be eligible to borrow up to 95% of the property value.

However, depending on the state you're moving to, you will need to be in the country for at least 200 days to be eligible to avoid the foreigner stamp duty surcharge.

Please call us on +61 2 9194 1700 from overseas or on 1300 889 743 from within Australia.

You can also complete our free assessment form and one of our Australian mortgage brokers will call you to discuss your situation.

Cheers,
Otto

Re: Can a New Zealander apply for a home loan in Australia?

Posted: Thu Mar 21, 2019 7:20 pm
by TheoVon89
Hey,

I didn’t mention this before but this is the first time I’m purchasing a property. I was wondering if I was eligible for the first home owners grant as well.

Re: Can a New Zealander apply for a home loan in Australia?

Posted: Thu Mar 21, 2019 7:25 pm
by Otto Dargan
Hey Theo,

When New Zealand citizens arrive in Australia, they’re automatically granted a special visa known as a Special Category Visa (Subclass 444).

Because New Zealand citizens are considered – for all intents and purposes – to be permanent residents of Australia, they are eligible for the first home owners grant (FHOG).

However, it's always best to check with the relevant office of state revenue to confirm that this is still the case. Rules around FHOG can change on a regular basis.

Cheers,
Otto

Re: Can a New Zealander apply for a home loan in Australia?

Posted: Thu Mar 21, 2019 8:08 pm
by TheoVon89
Great! Thanks for helping me out. I really appreciate it. One last question! My friend tells me that NZ citizens can only purchase new properties. Is this true?

Re: Can a New Zealander apply for a home loan in Australia?

Posted: Thu Mar 21, 2019 8:09 pm
by Otto Dargan
Hey Theo,

Excellent question!

Foreign citizens are required to buy a new property to comply with Australian legislation.

However, NZ citizens such as yourself can purchase both vacant land and existing properties.

If you're looking to get an Australian mortgage, please call us on +61 2 9194 1700 or complete our free assessment form and one of our brokers will contact you to further discuss your options.

Cheers,
Otto