ASB last major lender to impose restrictions on overseas property buyers

Monday 13th June 2016

ASB Bank is to impose new restrictions on overseas property buyers, the last major lender in New Zealand to do so.

In a statement, the 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."

Applications from customers who aren't New Zealand citizens or permanent residency will only be accepted if overseas income is excluded.

On Friday, Bank of New Zealand joined ANZ Bank New Zealand and Westpac Banking Corp's local unit in restricting mortgage lending for foreign property buyers, following similar steps by their Australian parents.

The New Zealand lenders have been following their Australian parents in either getting out of mortgage lending to foreign property buyers altogether or imposing higher hurdles in doing so. Last month, the Australian Financial Review reported two of Australia's major banks - ANZ and Westpac - discovered hundreds of home loans were approved backed by fraudulent Chinese income documents.

BusinessDesk.co.nz

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