Declaring overseas debt

Question from Mathew updated on 14th January 2019:

I have investment properties in both Australia and New Zealand. I now live in Australia and am earning an Australian salary. If I want to take on further lending from a New Zealand bank, do I need to declare my investments in Australia? When I purchased the Australian properties, my broker advised me that I did not legally have to declare my properties or the debts in New Zealand: is that the case?

Our expert Kris Pedersen responded:

Lenders are going to want to know cases where you have debts in place. Effectively any lending personal guarantee will want that declared. Generally, they do this so they can take the full picture of you as an applicant into consideration. I have seen cases where lenders have just disregarded offshore assets but they are probably breaking a couple of rules when doing so.

Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies.

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