# NZ Mortgage for Work-to-Residence?



## NZ4me

Hi,

Now that we've arrived a few months ago on a w-t-r visa, we find that banks require a 30% deposit before offering a mortgage to "foreigners", as opposed to 5%. Has anyone found a bank in NZ that is flexible in this area, or is it a gov't/banking policy?

Along this line of thought... Is there anyone with experience in applying directly for residence (EOI process, etc) once they are here on a w-t-r visa? If more than 140 points, will we be able to obtain a residence visa in less than two years, or are we 'locked in' to the w-t-r track?

Thanks,

Bob


----------



## jewoley

Hi Bob,

Not too sure on the banks, I thought it was 20%? Don't know if a non-resident would be able to get a home loan with 5% either - which bank have you tried?

If you have enough points, why not? It'll be quicker than the 2 years wait. 

For me, I waited because I'm cheap  
the fee for RFW is about half the normal resident application fee. I don't know how long it takes for the other route, but I got my resident visa within 2 months. No complications - just applied, submitted medicals and police clearance - done. 
To be fair, I have no commitments and didn't have a particular need to obtain a resident visa before my two years were up with the WTR. And because of that I thought I'd save myself some money, too! 

Don't know if my response is of any help. :S


----------



## Darla.R

NZ4me said:


> Hi,
> 
> Now that we've arrived a few months ago on a w-t-r visa, we find that banks require a 30% deposit before offering a mortgage to "foreigners", as opposed to 5%. Has anyone found a bank in NZ that is flexible in this area, or is it a gov't/banking policy?
> 
> Along this line of thought... Is there anyone with experience in applying directly for residence (EOI process, etc) once they are here on a w-t-r visa? If more than 140 points, will we be able to obtain a residence visa in less than two years, or are we 'locked in' to the w-t-r track?
> 
> Thanks,
> 
> Bob


Give the banks a miss, they're always the first to put up their mortgage rates and the last to bring them down. Why not try a broker?

No, you're not locked in. If you have enough points go for it.


----------



## anski

This is an extract from the Kiwibank website.


Kiwibank - Banking New Zealand

First home buyers - Kiwibank


Getting into your first home
Want a first home loan that fits around you, with as little as 5% deposit? We know how hard it can be to scrape together the 20% that many banks require. At Kiwibank, you don’t have to have a 20% deposit to get into your first home – we’ll lend you up to 95%, just like we’ve always done.

For a limited time we’ll also give you a house-warmer of $500, to help with those initial moving day expenses.

So talk to Kiwibank today – the bank for first home buyers. Apply now

Kiwibank Home Loans are guaranteed to save you money on the overall cost of your home loan over the first six years compared with any equivalent home loan from any other bank with branches nationwide. Or we’ll beat the difference.

For a limited time, if you’re buying your first home you’ll receive $500 when you draw down your home loan, which will be deposited into your Kiwibank bank account on settlement day. If you’re borrowing over 80% we may require that lender’s mortgage insurance be taken out, with the insurance premiums paid by you. Kiwibank Limited.

As a bank I can reccommend them they have a bank account with no fees & although only a young bank establish about 6 years ago I have seen them develop, also important they are 100% Kiwi owned by new Zealand Post. Many of the other banks are Australian owned.
Banks will always offer lower rates than finance from other sources.

Good luck.


----------



## NZ4me

Thanks, this has been useful. I did the quick online check for points and I have more than required so I'll look into it a bit more. 

I think the Kiwibank rules (5% down) given are for citizens and residents - one source said non-residents can get away with 20% in some cases but the norm is 30%.

Worth doing some more research, certainly. Thanks!


----------



## anski

NZ4me said:


> Thanks, this has been useful. I did the quick online check for points and I have more than required so I'll look into it a bit more.
> 
> I think the Kiwibank rules (5% down) given are for citizens and residents - one source said non-residents can get away with 20% in some cases but the norm is 30%.
> 
> Worth doing some more research, certainly. Thanks!


Good luck with becoming a resident. I must admit this is one area I know nothing about. As an Australian I just walked in but I can sympathise how lengthy & frustrating it can be.

Use this wait time to research house areas & prices. 

If there is a particular house you like & it is slow to sell the owners might be prepared to do a deal with you. Like you rent it & when you are in a position to buy they will offset the rent or a portion of it from the purchase price.

Worth a try & it never hurts to ask. 

Good luck.


----------



## Darla.R

I recall this issue coming up a while ago on another forum, the poster was also on a WTR visa and had a devil of a job getting a good deal on his mortgage and that was_ before_ the financial crash.

Hence the reason why I suggested going to a broker, that is what he did and came away well satisfied. Just be sure to ask about their commissions and what products they're tied into.


----------

