How much can I borrow?
As a guide, we will lend up to 95% of the value of your first home, you can then borrow up to 90% on your first two investment properties and 80% on the third and fourth investment properties (a Low Equity interest rate premium may apply in each of these situations). After that, loans on any further properties are reviewed on an individual basis. On apartments, you can borrow up to 75%.
As well as your own personal income, you can use up to 70% of your rental income to service your loan.
What are my loan options?
As a residential property investor, you can choose from any Bank of New Zealand home loan.
Interest only mortgages are popular with residential investors who are expecting a capital gain or are using another source of income to help pay off the loan. With this type of loan, repayments cover just the interest. The principal must be repaid by the end of the loan term. You can choose the interest only feature on any mortgage (other than Rapid Repay), for up to 5 years.
Our GlobalPlus* and Fly Buys** home loans are also very popular with investors. Your investment can earn you rewards (Air New Zealand Airpoints Dollars or Fly Buys points) while your rental income helps make the loan repayments.
Check out loans at a glance for more information.
What other costs are there?
There will be some additional costs when purchasing an investment property, which might include legal fees for the purchase or to set up a business or trust, valuation and inspection costs, insurance, rates, a LIM report (a Land Information Memorandum which provides information about the property and its surrounds like roads, flooding, erosion, consents etc.), body corporate fees and any maintenance or urgent repairs that may need to be undertaken on taking over the property.
Other points to remember
- Check with us about any finance clauses needed in
your offer
- Don’t sign anything until you have talked things
over with your lawyer
- If you are buying at auction or by tender we can
provide you with a pre-approved mortgage certificate so that you know
exactly how much you can spend.
It's easy to apply for a BNZ home
loan today.
BNZ home loans are not available through brokers.
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Air New Zealand Airpoints Programme terms and conditions apply. A $50 Airpoints joining fee may apply. |
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Fly Buys terms and conditions apply. Fly Buys collection and redemption rates are subject to change without notice. Fly Buys are not available on GlobalPlus, Rapid Repay or Mortgage One loans or other packaged offers.
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| Our home lending criteria and an establishment fee apply. A Low Equity or Low Doc interest rate premium may apply. Not available for business purposes or packaged offers. |
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