Third Major Bank changes Overseas Policy

Third Major Bank changes Overseas Income Policy:

Three out of four of the major banks have now implemented policies around overseas income, only a matter of time before the forth does.

What’s changing?

1. Foreign income of people who are not New Zealand or Australian citizens, or do not hold a current permanent residency visa won’t be recognised for servicing purposes. This is the case, regardless of whether or not they reside in New Zealand.

2. New Zealand and Australian citizens and permanent residency holders, who are not currently residing in New Zealand and using foreign income to service a loan will now have a maximum allowable LVR of 60%.

Customers in this category will also have a 40% shade applied to the value of their income earned overseas, when calculating their ability to service the loan.


These changes apply to all new applications from today, Friday 10 June:

Where a customer generates income outside of New Zealand, it will only be included in the loan application where:

The customer is a New Zealand or Australian Citizen, or a New Zealand permanent resident visa holder; and

The customer predominantly resides in New Zealand, in which case the income will be shaded by 10%; or

The customer predominantly resides outside of New Zealand, in which case the income will be shaded by 40% and the maximum LVR will be 60%.

Foreign income from self-employment is not acceptable for any customer type or application.


Today we can still lend for with oversees income but in the short term this is going to change.

There are however slight differences on what that will look like with our portfolio of lenders so ensure
you send your clients to us to assess current viability.