This week New Zealand mortgage brokers were advised of a change to Westpac’s process for dealing with offshore buyers seeking lending in New Zealand.
The process for clients who are not based in New Zealand purchasing a property and obtaining the right financial arrangements can be difficult to understand and most bank staff and many mortgage brokers struggle with it all.
At North West Mortgages our advisers are experts at providing finance for overseas buyers and particularly arrange a lot of finance for those in Australia. Both Stuart Wills and Clive Brumby have focused on this and have the expertise to assist offshore buyers looking for finance.
We understand that people can be deemed offshore buyers for many reasons. Many Kiwi’s have moved offshore for work or to be close to family and there are also a lot of people looking to shift to New Zealand but want to buy a property before they reside here.
Lending Changes For Offshore Buyers
Westpac has reviewed the arrangements they currently have in place for those clients that are based or living offshore, or have income derived offshore.
Westpac claim that the recent introduction of the Responsible Lending Code is clear in that they need to assist clients make an informed decision, they can make repayments without financial difficulty and the information they have provided is verified as true and correct.
They have therefore decided to make the following changes when assisting overseas based customers or non-residents;
What are the changes for offshore buyers?
Overseas residents may now be required to be in New Zealand to meet with a member of a Westpac branch before a loan approval can proceed to an unconditional status. Original documentation (ie payslips, bank statements and Identification) will be required during this appointment.
This will be noted as an approval condition on a Letter of Offer provided by Westpac and until this and all other approval conditions have been satisfied they will not be able to provide an unconditional approval.
Of course, as we know it is not always possible for offshore buyers to come to New Zealand to meet with someone at a Westpac branch.
Changes Make Westpac A Difficult Option, But…
This makes it extremely difficult for offshore buyers to secure finance with Westpac unless they are in New Zealand at the time and have all of the correct and original information with them at that time.
At least New Zealand mortgage brokers have a range of options with other banks and non-bank lenders.
Some people think of mortgages for overseas buyers as non-standard lending; however in most cases a mortgage broker will be able to get finance for offshore buyers with the banks.
