[scott&vicky]

Hi Guys,

Myself and my partner are coming from the UK to NZ next year. We have some questions about mortgages and buying property in NZ.

How soon can we apply for a mortgage when we arrive in NZ? Do we need to become PR first?

What is the process of buying a property in NZ?

How much depoisit do we need and how much will the bank lend you?

Do we use our credit rating from the UK? Do we need to bring anything with us from the UK like a credit report?
OR
Do we have to build up our credit history in NZ before we can obtain a mortgage?

Many Thanks Guys xx

[james the mechanic]

Hi Scoot & Vicky,
Mortgages are known as Home Loans in NZ. Some banks may be willing to lend immediately based on your previous UK salaries, others may require you to operate a account for some months. Deposits are usually 10%, however 100% home loans are not unheard-of; you do not require PR to obtain a home loan in NZ. Your credit rating in the UK is not normally of any significance. We have found NZ banks to be a lot more flexible and understanding than in the UK, We found the National Bank to be the best bank we have ever dealt with.

House purchase is a bit different to buying in the UK, you need to have a solicitor draw up a contract with any conditions you want added, i.e. subject to a building report that is satisfactory to you, finance that is satisfactory to you etc you then add the price you are offering and the date of completion, this is then given to the vendors agent and if they accept your offer and conditions they countersign and its a done deal. However they will probably amend something (i.e. the price) and send it back to you to countersign again, this goes on until you are all happy. Bidding normally goes up in $500 increments so this can and does sometimes take a long time (especially when dealing with someone as stubborn as me). You can make just about anything a condition of sale, however the cleaner the contract the more attractive it is to the vendor.
When all conditions in the contract have been satisfied, you have bought the house, this is known as going unconditional and a 10% deposit is normal paid over at this time.
Always get a solicitor to check the sale and purchase agreement before you sign it. The vendor’s agent draws up the contract and as they work for them not you, if you don’t understand something, ask your solicitor not the agent.
Others may disagree, but I would advise you, that when dealing with NZ real-estate agents the only thing you can believe is, that you can’t believe anything they say. Harsh but, in my experience true.
Hope that helps
James

[james the mechanic]

Sorry Scoot, I meant Scott
Jams
P.S. if you are thinking of buying in Hawke’s Bay I can recommend an excellent solicitor.

[scott&vicky]

Hi James,

Thank you for your information it was really helpful. We now know what to look out for.:nice1

[IanW99]

When we were looking for a home loan with a WTR they said that we would need to put down a deposit of at least 20% so not sure what James has said is completely accurate. Although I guess other banks might be more flexible?

When all conditions in the contract have been satisfied, you have bought the house, this is known as going unconditional and a 10% deposit is normal paid over at this time.

Most things appear to be negotiable e.g. the interest rate that you pay, monthly fees etc. Also want to point out that the 10% deposit is definitely negotiable (we only paid 5%). Doesn't make much difference if you are settling immediately but if you are waiting for e.g. a new build then can save a lot.

For credit history, they were not interested in our previous history just that we were working now.

Ian

[Caroline and Dave]

Hi.
We purchased a book from NZ and had it sent to the UK. It is called The Streetwise Homebuyer.
This book talks you through everything you need to know about buying property in NZ and gives plenty of tips on Estate Agents etc.You can order it on line here
http://www.wheretoliveinauckland.co.nz/StreetWise.aspx

Hope this helps

Dave and Caroline

[Hannah-NL]

Hi, I read about those 2 books, would anyone have them for sale, 2nd hand?
Hannah