Written by Kellie Steed Reviewed by Lee Trett
29 May 2026
Full rewrite updating rules to reflect current information and adding further detail for readers
10 September 2020
First Published
New Zealand is a dream location for many Brits looking to relocate. With no language barrier, and even driving on the same side of the road, it has elements of familiarity alongside its slower paced way of life, lush mountain scenery and beautiful beaches. It's no surprise, therefore, that it's been a top destination for UK expats and international investors for many years. However, securing finance to purchase property in Aotearoa is not always as straightforward as doing so in the UK.
We look at how UK-based brokers with specialist knowledge in the New Zealand mortgage market can be an essential part of the process. Whether you’re looking to relocate to Auckland, invest in a new-build apartment in Wellington, or buy a property near Queenstown, at Money Helpdesk we can help you navigate New Zealand's mortgage criteria, Overseas Investment Office (OIO) requirements, and other overseas regulations that differ from the UK.
Can you get a UK mortgage to buy New Zealand property?
No, you can’t, from a UK lender. They don’t currently offer mortgages to British citizens or expats who are looking to buy residential property, or invest in the New Zealand rental market.
However, the good news is that many New Zealand mortgage lenders are receptive to UK and other international buyers, provided they meet strict legal requirements. While New Zealand property and mortgage rules are quite different to those of UK lenders, a UK mortgage broker with experience in the New Zealand market will be able to help you.
Can anyone buy in New Zealand?
No, you need citizen or permanent resident status (unless you are an Australian or Singaporean national, who can purchase freely) to be able to purchase existing property within New Zealand. There are a few exemptions to this rule, for example, non-residents can:
- Buy new-build apartments or homes though a developer - although they limit the number of foreign buyers per development
- Invest in property such as hotels, apartment blocks, or new-build homes
- Buy land to develop, but you need to sell once the property is complete
Spouses, and in some cases parents*, of New Zealand citizens, or of people with permanent residency as well as Australian and Singaporean nationals are eligible to buy property there.
The $5m propery loophole
Wealthy overseas buyers holding an Active Investor Plus (AIP) visa, or the older Investor 1 and 2 resident visas, can now bypass the "ordinarily resident" rules entirely. They are permitted to buy or build one residential or lifestyle property for personal use, provided the property value is over NZD $5 million and they obtain swift consent from the Overseas Investment Office (OIO).
*This is heavily tied to financial standing and you will typically need at least $60k NZ as well as high-value assets to qualify
How New Zealand mortgages work for non-residents
For UK nationals looking to buy property in New Zealand, there are significant regulatory hurdles. Following the 2018 amendment to the Overseas Investment Act, property buyers who are not New Zealand citizens or permanent residents are heavily restricted in what they are legally allowed to buy (as above).
In addition to this, borrowers not permanently residing in New Zealand, and/or those not paying their main taxes there, are classified as non-residents by Kiwi banks. Mortgage lending in New Zealand is highly dependent upon your residential status, and non-residents are subject to different maximum loan amounts, interest rates, and deposit requirements.
New Zealand mortgage criteria
New Zealand banks take a conservative approach when assessing foreign income. Lenders often apply a practice known as 'income shading', where they discount your foreign income by 20% to 30% to account for currency fluctuations before calculating what you can afford to borrow.
Non-residents generally face a lower maximum Loan-to-Value (LTV) ratio, often capped at 60% to 70%. This means you will typically need a much larger deposit, around 30% to 40% of the property's purchase price, compared to a resident buyer. You will also need to demonstrate a stable employment history and a strong credit profile.
How New Zealand lenders perform property valuations
Just like in the UK, New Zealand lenders will require a professional property valuation before they formally approve your mortgage. This ensures the property provides adequate security for the loan. The valuation is carried out by an independent, bank-approved registered valuer.
In New Zealand, buyers are also heavily advised, and often required by lenders, to obtain a Land Information Memorandum (LIM) report from the local council. This report outlines zoning rules, flood risks, and any historical building consents attached to the land.
Which lenders offer New Zealand mortgages?
The New Zealand mortgage market is dominated by major banks such as:
- ANZ
- ASB
- BNZ
- Westpac
While some of these major banks will lend to non-residents, their criteria for assessing foreign income can be incredibly strict. Furthermore, some domestic banks, like Kiwibank, do not currently lend to non-residents at all. Fortunately, there are also specialist non-bank lenders and international banks that cater specifically to expats and foreign investors. Working with a specialist broker ensures you are matched with the lender whose criteria best align with your specific visa status and financial situation.
How to secure a New Zealand mortgage as a UK buyer
The most crucial step for a UK buyer securing a mortgage in New Zealand is obtaining approval from the Overseas Investment Office (OIO). Without OIO consent, foreign citizens are legally prohibited from purchasing most types of residential real estate.
Most New Zealand lenders will require evidence that your OIO application has been approved, or is at least underway, before they will issue a formal mortgage offer. Using an experienced overseas mortgage broker is highly recommended to help coordinate your financing alongside your OIO application to prevent severe delays.
Types of New Zealand Mortgages Available
New Zealand lenders offer a variety of mortgage products that function similarly to those in the UK. The most common types include:
-
Table loans: The most common mortgage type in New Zealand, functioning exactly like a UK standard repayment mortgage
-
Interest-Only (IO): Commonly used by property investors, your monthly payments only cover the interest for an agreed period (usually up to five years). The capital remains unchanged until the interest-only period ends. This is similar to UK interest-only mortgages but it's important to check the exact terms
-
Fixed-rate mortgages: Your interest rate is locked in for a set period, typically between one and five years, providing certainty over your monthly repayments
-
Variable-rate (Floating) mortgages: The interest rate fluctuates with the market, moving in line with the Reserve Bank of New Zealand's official cash rate
-
Revolving credit loans: These function essentially like a large overdraft secured against your house, offering high flexibility for making unlimited payments and withdrawals
Speak to a self-build mortgage specialist today
Can I get a Buy-to-let mortgage in New Zealand?
Yes, but in New Zealand, these are known as 'Investment Property Loans', not buy-to-let, like in the UK. You can secure one as a non-resident, provided you meet both the lender's criteria and the strict OIO regulations.
Crucially, under OIO rules, non-residents generally cannot buy existing homes to rent out. You are typically restricted to purchasing new-build properties or off-the-plan apartments, as foreign investments must demonstrably "add to New Zealand's housing supply." It is also important to note that non-residents face higher deposit requirements for investment loans compared to owner-occupier loans.
Mortgage and property costs in New Zealand
When purchasing property in New Zealand, you need to budget for several upfront costs. Notably, unlike the UK or Australia, New Zealand does not charge stamp duty, which provides significant savings.
|
Expense Category |
Estimated Cost |
Details & Key Considerations |
|
Overseas Investment Office (OIO) Fee |
$30,000 to $50,000+ NZD |
A mandatory application fee for non-residents that scales significantly depending on the complexity of the purchase. |
|
Stamp Duty |
$0 |
New Zealand does not charge stamp duty or standard land transfer taxes. |
|
Legal / Conveyancing Fees |
$2,000 to $5,000 NZD |
Paid to a New Zealand property lawyer for conducting due diligence, LIM report checks, and contract handling. |
|
LIM Report (Land Information Memorandum) |
$300 to $400 NZD |
A vital council report required to check zoning, land boundaries, and environmental risks. |
|
Property Valuation Fee |
$500 to $1,000 NZD |
Paid to an independent valuer prior to official mortgage underwriting. |
|
Deposit |
30% to 40% of the property's purchase price |
Must be available in liquid cash. Non-residents typically require a much higher deposit than local buyers. |
Considerations for non-residents when buying a home in New Zealand
When buying a home in New Zealand as a non-resident or temporary visa holder, there are highly specific legal and geographical considerations that differ vastly from purchasing in Europe.
OIO Property Restrictions
The most significant restriction for foreign buyers is the type of property you can purchase. Under the Overseas Investment Act, non-residents are generally prohibited from buying 'existing' (second-hand) dwellings. You are typically only permitted to buy new-build properties or vacant land (provided you construct a home on it within a strict timeframe). Additionally, land classified as 'sensitive', such as rural farmland, coastal areas, or lakeside properties, faces intense scrutiny and is extremely difficult for foreigners to purchase.
The 183-Day Rule for Expats
Even if you are a UK expat who has recently been granted a New Zealand Resident Visa, you cannot freely buy an existing home right away. You must have physically lived in New Zealand for at least 183 days within the past 12 months and be considered a tax resident before the foreign buyer restrictions are fully lifted.
Paying in NZD - Fluctuating currency
All mortgage repayments in New Zealand will need to be paid from a New Zealand bank account, in NZD. If you live and earn your income in the UK, a shift in the exchange rate could mean your mortgage suddenly costs you more in GBP. It’s highly advisable to speak to a specialist currency exchange broker who can help you manage regular overseas transfers efficiently.
The importance of specialist advice
Because of the strict OIO regulations, complex visa rules, and the conservative way New Zealand banks assess foreign income, securing a mortgage requires expert navigation.
Using a specialist UK-based broker with deep knowledge of the New Zealand market will save you time, protect you from making legally non-compliant offers, and give you access to lenders who are genuinely willing to finance non-resident applications.
To speak to an expert in arranging New Zealand mortgages for UK expats, get started here for your intial free consultation.
FAQs
Yes, you can, but the rules depend on your mortgage type. Variable (floating) rate mortgages in New Zealand are highly flexible and usually allow unlimited overpayments without any early repayment fees.
However, if you are on a fixed-rate mortgage, lenders typically impose strict annual limits on how much extra you can pay. Exceeding these limits can trigger expensive 'break costs' or early repayment adjustments. This is similar to how fixed-rate mortgageswork in the UK.
Yes, but New Zealand lenders enforce strict Anti-Money Laundering (AML) regulations regarding gifted funds. The person gifting the money must provide a signed 'Deed of Gift' or statutory declaration confirming the funds are a non-refundable gift and that they hold no legal interest in the property. This is similar to the UK gifted deposit rules.
Lenders will also require a meticulous paper trail tracking the cash from the donor's bank account to yours. Additionally, banks generally insist that at least 5% of the property's purchase price comes from your own genuine, accumulated savings rather than a gift.
No, not currently. While you may see information in the UK about expat mortgages, this generally refers to international buyers purchasing property situated in the UK.
There are currently no UK high-street lenders that will directly finance the purchase of a property located in New Zealand. To buy in New Zealand, you must use a New Zealand bank, an international bank with a local presence, or a specialist non-bank lender.