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Thread: Buying a house | Talent (accredited employer) work visa

  1. #21
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    Quote Originally Posted by Juniper View Post
    (30% for property investors in Auckland)
    The key words there are "property investors". The rules make a distinction between "investor loans" and "owner occupier loans" .

    https://www.rbnz.govt.nz/financial-s...o-restrictions

  2. #22
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    Quote Originally Posted by Oregonkiwi View Post
    The key words there are "property investors". The rules make a distinction between "investor loans" and "owner occupier loans" .

    https://www.rbnz.govt.nz/financial-s...o-restrictions
    That could make sense. The sentence in question doesn't seem to make that distinction, so it's still unclear to me! The quote only differentiates between "borrowers" in general needing a 20% deposit, and "property investors in Auckland" needing 30%. So what about the category first mentioned by the OP, which would be "owner occupied loan for migrants without PR." Seeing as the article linked above is targeted at that exact group, you'd think they'd mention any banking regulations specific to that category!

    Maybe it differs from bank to bank. I suppose we'll find out for ourselves soon enough.

  3. #23
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    Quote Originally Posted by Juniper View Post
    The sentence in question doesn't seem to make that distinction, so it's still unclear to me!
    You were looking at a 'general information' site. This is from the Reserve Bank site I linked to, which clearly shows the distinction between investor and owner occupier:
    LVR lending restrictions are tighter for loans secured by investment property than for owner occupied property.

    Mortgage lending by banks is placed into one of the following classifications of LVR restriction.

    Investor loans – 35% deposit / 5% of investor lending
    LVR lending restrictions are tighter for loans secured by investment property in response to the risks associated with this type of loan. Low-deposit (high-LVR) loans in this category are those loans that are more than 65% of the property’s value (35% deposit).

    High-LVR loans can make up no more than 5% of a bank’s total new lending in this category.

    Owner occupier loans – 20% deposit / 15% of owner occupier lending
    This class of loan is for borrowing secured against owner occupied property. Low-deposit (high-LVR) loans are defined as those loans that are more than 80% of the property’s value (20% deposit).

    These loans can make up no more than 15% of a bank’s total new lending in this category.

    So what about the category first mentioned by the OP, which would be "owner occupied loan for migrants without PR"
    Most people without Residence won't be able to buy property under the new Overseas Investment rules anyway.

    Maybe it differs from bank to bank
    The banks all have to follow the LVR rules but all have their own policies about lending. It can help to use a mortgage broker to navigate through it all.

  4. #24
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    Ah oops I neglected to read the link. However it doesn't clarify anything related to residency or PR restrictions on lending. The Overseas Investment rules do restrict buying to those with residency, but as I understand it, that new law doesn't require you to have permanent residency. So maybe the PR requirement to get an 80% loan is indeed an additional criteria added by some, possibly all banks, even though the law doesn't (appear to??) require it?

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