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Restrictions based on offshore borrowers

The last week has seen policy changes by ASB, ANZ, BNZ and Westpac targeted at offshore borrowers. Effectively while this again looks like Banks are massively tightening criteria this is in reaction to an extent to mortgage fraud issues which have eventuated in Australia and are designed to limit the chance of this happening here. Basic changes are that foreign income for borrowers who are not NZ or Australian citizens or whom do not have permanent residency here will not be excluded. For NZ or Australian citizens or those whom have permanent residency are effectively having this foreign income scaled or further rules put on what kind of funding can be accessed.

A summary of changes are copied below.

If you have any queries in regards to this please feel free to contact us (09) 486 4710 so we can help advise you on your specific requirements.

ANZ – have made changes to their criteria for applications that rely on Overseas Income, effectively immediately as at June 9th:

Westpac – also have made the following changes as at June 9th:

BNZ – as at June 10th:

ASB – this has always had a 30% scale on overseas income, but the servicing margins have been increased to 7.55% P&I for all new lending:

Sovereign – is effectively the same as ASB.


Changes are coming which will include further credit control tools. It is likely to get harder to access investment lending and there is the chance that the cost of credit could rise. Action points to consider are:

  1. Topping up your investment properties now to either replenish revolving credit facilities or pay down debt on your personal residence
  2. Increasing revolving credit limits (note that this is lender dependent as some are very restrictive in regards to this).
  3. If you have investment builds or are signed up for purchases off the plans make sure your funding is in place.
  4. Assess your interest rate strategy

If you are wanting a meeting to discuss further to see how these may apply to your situation or if you would like us to assist with any of the above please contact us on 09 486 4719.

Read more June 2016 articles written by Kris Pedersen that talks further about changes to the current finance market:

ANZ tightening some criteria especially around investment builds

Investment interest rates increasing