Arranging Australian (AUD) Mortgages for NZ Citizens in Australia
Historically, New Zealand citizens resident in Australia have been treated very much like Australian citizens and permanent residents by both the government and banks - hence, they have access in principle to first homeowner grants, stamp duty concessions where applicable and loan conditions which reflect those for Australian citizens and PR's.
During May 2016 however, Australian banks at the prompting of regulators considerably tightened lending access to both Australian expatriates and foreign investors - typically reducing the maximum loan to valuation ratios (LVR) applicable. Australian expatriates and permanent residents are now often limited to loans of 80% of the property valuation, although a higher loan percentage may sometimes be available depending on the circumstances - including their location and currency of income. New Zealanders resident in Australia still have access to Australian mortgages, but New Zealand citizens resident in New Zealand, or elsewhere in the world, will not generally have access to mortgage finance from domestic lenders in Australia.
Just a note of warning in relation to capital gains tax (CGT), which does not exist in New Zealand, but which would apply to any investment property located in Australia which made a capital gain. We recommend professional tax advice in advance of any purchase, and note that anyone owning a property which generates rental income in Australia is required to submit an annual Australian tax return.
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