The ASB Bank in New Zealand has become the last major mortgage lender in the country to impose strict lending restrictions on overseas property buyers.
With house prices in the country rising, due partly due to a recent increase in the number of foreigners purchasing there, the ASB Bank has joined the Bank of New Zealand, ANZ Bank New Zealand and Westpac Banking Corp in making it far harder for a non-resident to get a home loan.
In a statement, the ASB Bank said: “Overseas income will no longer be considered in applications where the customer does not hold New Zealand citizenship or permanent residency. Where a customer does hold New Zealand citizenship or permanent residency, we will consider overseas income on a case-by-case basis subject to certain conditions.”
Therefore, mortgage applications for non-residents will now only be accepted once all overseas income is excluded.
Article by David Fuller