ASB has joined its key rivals in tightening lending criteria for overseas house buyers with offshore income.
"Overseas income will no longer be considered in applications where the customer does not hold New Zealand citizenship or permanent residency. Where a customer does hold New Zealand citizenship or permanent residency, we will consider overseas income on a case-by-case basis subject to certain conditions," an ASB spokeswoman told interest.co.nz.
"We continue to consider applications from customers without New Zealand citizenship or permanent residency where overseas income does not form part of the application, subject to certain conditions."
The ASB changes are effective from Tuesday, June 14.
The changes by NZ banks come after their Australian parents halted lending to non-residents and temporary visa holders earlier this year. Subsequent to that The Australian Financial Review reported both ANZ and Westpac had discovered they had approved "hundreds" of home loans backed by fraudulent Chinese income documents, allegedly put together with the assistance of mortgage brokers. Interest.co.nz recently reported on claims of mortgage fraud in NZ along the lines of that reported by the AFR in Australia.