Four out of five majors no longer lending to foreign buyers

by NZ Adviser15 Jun 2016
ASB Bank has followed Westpac, ANZ and BNZ in tightening its lending criteria for foreign buyers.
 

The bank said in a statement it has reviewed its policies concerning the treatment of overseas income in home loan applications.
“Overseas income will no longer be considered in applications where the customer does not hold New Zealand citizenship or permanent residency.
 
“Where a customer does hold New Zealand citizenship or permanent residency, we will consider overseas income on a case-by-case basis subject to certain conditions.
 
“We continue to consider applications from customers without New Zealand citizenship or permanent residency where overseas income does not form part of the application, subject to certain conditions.”
 
ASB said these changes were made as part of their ongoing review of home loan credit policy.
 
Westpac and ANZ announced their changes last Thursday and BNZ on Friday.

Westpac New Zealand is no longer lending to non-resident borrowers with overseas income and those looking to borrow who are temporary residents will only be accepted if they hold a New Zealand address and receive a New Zealand-based income.

ANZ has restricted lending to owner-occupied properties but the restrictions don't affect Kiwis living abroad and buying with overseas income.
 
BNZ no longer recognizes foreign income of people who are not New Zealand or Australian citizens, or do not hold a current permanent residency visa, or servicing purposes, regardless of whether or not they reside in New Zealand. 

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