Background
Our client is an Australian citizen relocating permanently to Queenstown. He was looking to purchase a high-end 7.6-hectare lifestyle property for owner-occupation. The loan was structured at a 71% LVR and supported by a significant cash deposit.
Challenges
The client had not completed Australian tax returns since 2023, making mainstream lenders hesitant to proceed. Additionally, Overseas Investment Office (OIO) approval was required for the purchase, which added further complexity and caution among traditional banks.
The loan was required for a 12-month term, with the intention to refinance to a main bank once up-to-date financials became available.
Mitigants
- The borrower planned to operate his Australian-based business remotely from NZ, demonstrating his stable and adequate income source.
- He also has a strong asset position with liquid funds to service the loan.
Solution
We approved a 12-month, interest-only loan secured by a registered first mortgage over the lifestyle property at 71% LVR.
We were comfortable with the proposed refinance strategy after 12 months, subject to standard conditions, including the provision of a Registered Valuation and confirmation of OIO approval.
LOAN AMOUNT
$2 million
INTEREST RATE
8.95% p.a.
TERM
12 months interest only
LVR
71%
ADVISER FEE
$20,000
AVANTI FEE
$20,000
A CASE STUDY BROUGHT TO YOU BY
“Our short-term first mortgage bridging home loan is ideal for property transitions, whether your clients are upsizing, downsizing, relocating, or renovating to sell.
We take a flexible approach, tailoring terms to your client’s timeline. This is especially valuable for migrants, providing the understanding and support they need to settle smoothly during a tricky transition period.
If you have clients in a similar situation, get in touch with your local Avanti BDM.”
Mark Nolan
Business Development Manager, South Island