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Thread: Mortgages w/ no down payment

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  1. #1
    Join Date
    Nov 2004
    Location
    Palm N (from USA in Jan 06)
    Posts
    415

    Default Mortgages w/ no down payment

    Recently lenders in the US have become quite lenient (OK, downright lax) in their mortgage terms. I'm wondering if it is similar in NZ.

    Specifically, are there 100% or 80/20 mortgages available? Or mortgages that only require 3-5% down? I see that L.J. Hooker offers Low-Doc loans, which is helpful.

    Just tired of giving away my $$$$ to landlords, and not seeing much in the way of dog-friendly rentals.

    Thanks,

    Laura

  2. #2
    Join Date
    Dec 2004
    Location
    Wendy Willington
    Posts
    348

    Default

    From what I have gathered from talking to mortgage brokers, banks, etc. you are able to borrow anything from 90-100% IF you're a NZ citizen or have PR, IF you have regular, guaranteed income and you can point to a reasonable chunk of $ in your savings that you've been adding to regularly.

    For us foreigners though, the norm is a loan of 80%

    I know what you mean about swelling the pockets of landlords though...had a bellyfull of that myself .

  3. #3
    Join Date
    Aug 2004
    Location
    Wellington
    Posts
    58

    Default

    National Bank (and I'm sure others - that's just the one I know about) offers home loans with as little as 5% deposit (i.e. downpayment in US terminology), but there are so-called low-equity penalties if you borrow more than 80% of the purchase price. You may even be able to borrow up to 97%, but that's subject to your specific situation and may come with additional conditions.

    As Dave says, if you don't have residency, the the maximum amount you can borrow is 80%.

    Also, unlike in the US, mortgage interest is unfortunately not tax-deductible here.

  4. #4
    Join Date
    Aug 2004
    Location
    Auckland; Milwaukee, Surabaya
    Posts
    859

    Default

    Quote Originally Posted by heimatseeker

    Also, unlike in the US, mortgage interest is unfortunately not tax-deductible here.
    and also, personal income is not tax-deductable. Am i correct?...

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