millertime

Anyone provide any info on how NZ Mortgages work - are they basically the same set up as the UK?
Just wondered what size of deposit the banks look for and what their interest rates are.

Can anyone give an example of monthly payments please?

Cheers!

tracey710

my friend emigrated in jan 03 she has just bought a house 214,000. bank wanted a 20% deposit but they only had 10% so they had to pay an indemnity .

tracey710

just checked her last email; indemnity was $1500. mortgage is $1400 at 6.5% or thereabouts.

millertime

Cheers for that Tracey - gives us an idea budget wise.

smithone

Interest rates are higher over here in NZ which is good if you are saving but no so good if you are borrowing.

I've got a fixed rate of 6.4% which is pretty competitive.

The major banks have good info on their websites plus some affordability calculators.

Have a look at

http://www.asbbank.co.nz/default.asp
http://www.westpac.co.nz

speckles

As we were not in a hurry to move what we did was remortgaged our house in the UK and bought our house in NZ for cash. We got a rate of 4% but fortunately shifted our money there last year at a rate of 3.25, - rates are not so good at the moment but it may still be worth thinking about in the long term if you aren`t in a rush.

Doug

Gra.B

here's another good bank site - http://www.nationalbank.co.nz/person.../residents.htm -
This section has info for new residents & all the usual calculators, I think a few other people have recommended them in the past..

It all seems surprisingly straight forward, even for new residents, but whether it is in reality?!

Cheers,
Gra...

tracey710

it seems very easy .took friend 3 weeks to buy her house. other fiends sorry friends bought house while on hols took 3 days.

GetMeOutOfHere

Would it better to keep your money in the bank and let the interest pay the mortgage then?

stooly

We are planning to put down a 50% deposit do we need to get acredit reference from the UK or do we start from new.

smithone

When I took my mortgage out I used a broker who was very knowledgeable and new the market inside out. I can give you her email address so you can email her and get answeres to your questions.

Don

The bank mgr I spoke to (National) said they don't normally bother with UK references but will lend on the basis of your NZ income alone, I guess putting down a 50% deposit helps a lot in getting a larger loan.

Cheers - Don

Scarlett G

We hadn't started working when we got our mortgage, but as we were putting down more than 50% there was no problem (with ASB). They were very very helpful, no reference needed but would have been helpful, process exactly the same but much quicker . It took 10 days from offer to keys in our hand!!

millertime

Hiya Scarlett.

Are you resident in NZ? Do you have to be a resident to purchase?

Scarlett G

We were residents in NZ (Tauranga) under the general skills category, but came back to the Uk last year. However we are hoping to go back soon as being here is not what is best for all concerned. I don't know if you have to be a resident to buy or not I'm afraid. Under what category are you going and where to ?