A Complete Guide for New Zealand Citizens Buying Property in Australia

New Zealand citizens buying property in Australia face different rules depending on where they live. While most foreign buyers must seek approval from the Foreign Investment Review Board (FIRB), New Zealanders benefit from special rights under the Trans-Tasman Travel Arrangement. However, residency status plays a major role in whether they are treated as foreign investors, if they need FIRB approval, or if they can access first-home buyer schemes.

New Zealand citizens buying property in Australia enjoy unique benefits depending on their residency status.

Do New Zealand Citizens Need FIRB Approval?

The FIRB approval for NZ citizens depends on residency:

If living in Australia on a Subclass 444 Special Category Visa (SCV):

• Treated as permanent residents.

• No FIRB approval is required to buy an established or new residential property.

If living in New Zealand (not in Australia):

• Treated as foreign investors.

• FIRB approval is required.

• They are usually restricted to buying new properties or redevelopment opportunities, not established homes.

Are New Zealand Citizens Eligible for First Home Buyer Schemes and Grants?

First Home Guarantee (FHBG):

• Available to NZ citizens who are residing in Australia on an SCV.

• Not available for NZ residents living outside Australia.

First Home Owner Grant (FHOG):

• Varies by state, but SCV holders in Australia are generally eligible.

• Must live in the property and meet residency requirements.

This means that First Home Guarantee eligibility for NZ citizens only applies if they are living in Australia.

Stamp Duty and Surcharges

Living in Australia (SCV holder):

• No stamp duty surcharge: treated as residents.

• Eligible for first home buyer stamp duty concessions.

Not living in Australia:

• Must pay the foreign purchaser surcharge, which can be 8–9% depending on the state.

• This is in addition to standard stamp duty.

For example, the stamp duty surcharge in Victoria is 8% for foreign buyers and 9% in NSW.

Lending Considerations for New Zealand Citizens

When applying for a mortgage in Australia, lenders have different policies for NZ citizens.

• Income Assessment:

  • Overseas NZ income must be converted from NZD to AUD.

  • Some lenders shade NZ income by 20–30% to account for exchange rate risks, while others accept it at full value.

• Loan-to-Value Ratio (LVR):

  • NZ citizens living in Australia can borrow up to 95% LVR with Lenders Mortgage Insurance (LMI).

  • Non-residents are usually limited to 70–80% LVR.

• Other Lending Policies:

  • Lenders may impose stricter conditions for applicants who use overseas income.

  • Interest rates may vary depending on non-resident status.

Practical Scenarios

Scenario A: NZ Citizen Residing in Australia (SCV Holder)

• FIRB approval: Not required

• Stamp duty surcharge: Not payable

• First Home Guarantee / FHOG: Eligible

• Lending: Full range of lenders, up to 95% LVR

Scenario B: NZ Citizen Living in New Zealand (Non-Resident)

• FIRB approval: Required

• Stamp duty surcharge: Payable (8–9%)

• First Home Guarantee / FHOG: Not eligible

• Lending: Limited; overseas income shaded, LVR capped at 70–80%

Key Takeaways

• Residency matters most: NZ citizens living in Australia have almost the same rights as Australians when buying property.

• FIRB approval is only required if they are not residing in Australia.

• A stamp duty surcharge applies to NZ citizens buying property in Australia while living overseas.

• First Home Guarantee eligibility and First Home Owner Grant depend on living in Australia.

• Mortgage lending policies vary by lender, especially when assessing NZ income.

Disclaimer:

The information provided on this website is for general information and educational purposes only. It does not take into account your personal objectives, financial situation, or needs, and should not be relied upon as financial, legal, or tax advice. While we strive to ensure the content is accurate and up to date, we make no guarantees of its completeness, reliability, or suitability. Any reliance you place on the information is strictly at your own risk. We recommend that you seek independent professional advice before making any financial decisions, including from a licensed mortgage broker, financial adviser, or tax professional. References to government schemes, grants, or lender products are subject to change and eligibility criteria. Please confirm details with the relevant authority or provider. We are not responsible for any loss, liability, or damage incurred as a result of the use of this website or its content.