Intro
Interest rates in New Zealand are quite high with the current
bank lending rate at 8.25% making mortgages quite expensive. Some
banks are now willing to lend to non residents in different
currencies including Swiss francs. If you do decide to take a
mortgage in another currency applicants should be aware of the pros
and cons – even though your mortgage rate maybe lower, currency
fluctuations leave you paying back more than you borrowed
originally.
Availability
Mortgages are available to non residents from approximately 70%
LTV over 30 years on interest only and repayment < basis
. Rates currently range from just under 10% in NZD but can be
as low as 4% if the mortgage is taken in USD or CHF. If taking a
mortgage in a currency other than the one you receive your rental
and employed income in, make sure that you seek advice.
Cost
Mortgage arrangement fees can vary from lender to lender and if
you decide to use a broker there may be additional costs incurred.
Typically applicants will pay a fee around 2% of their agreed
mortgage.
Application Process
Once your application has been submitted to the bank it will
take approximately 4 – 6 weeks to check all your documents and
carry out a valuation. To save time it is advised that your
solicitors get in contact with the bank at the earliest
opportunity.
Mortgage Finance from Frontiers Financial Services
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