A. Legal and Regulatory Framework
A.1 Legal and Regulatory Framework
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Basis of the legal system: Civil, Common, Islamic, Other? (Describe) | Common | Common | Common | Ministry of Justice | A.1.1 |
| Are there specific laws that deal with mortgages? | Yes | Yes | Yes | NZ Government | A.1.2 |
| Registration/Transfer of titles: | A.1.3 | ||||
| Does the law clearly define different types of property rights? | Yes | Yes | Yes | Export NZ | A.1.3.1 |
| Are property rights easily transferable? | Yes | Yes | Yes | doingbusiness.org | A.1.3.2 |
| Typical number of days needed for the transfer of title | 1 day | 1 day | 1 day | Doing Business | A.1.3.4 |
| Can liens be effectively enforced? | Yes | ChapmanTripp | A.1.4 | ||
| Are there legal constraints on mortgage features? | Yes | Yes | Yes | RBNZ | A.1.6 |
| Loan-to-Value cap | Yes | Yes | Yes | A.1.6.2 | |
| Are there consumer rights for mortgage lending? | Yes | Yes | Yes | Commerce Comission | A.1.7 |
| Are there disclosure requirements for mortgage lending? | Yes | Yes | Yes | RBNZ | A.1.8 |
| Is there specialized legislation covering: | A.1.9 | ||||
| Issuance of covered mortgage bonds | Yes | Yes | Yes | RBNZ | A.1.9.1 |
| Issuance of RMBS | Yes | Yes | Yes | IRD NZ | A.1.9.2 |
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidized funding sources for mortgage lenders? | Yes | Yes | Yes | B.1.1 |
B.2 Subsidies to Households
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidies to households on housing finance? | Yes | Yes | Yes | Ministry of Development | B.2.1 |
| Down-payment subsidies | Yes | Yes | Yes | KiwiSaver | B.2.1.3 |
| Subsidies to savings for mortgage loans | Yes | Yes | Yes | Kiwisaver | B.2.1.4 |
| Mortgage interest deductibility from income tax | No | No | No | IMF | B.2.1.5 |
| Reach of subsidies in 2.1.1 to 2.1.4 ? | B.2.2 | ||||
C. Taxation
| Variable | End of 2016 | End of 2015 | End of 2014 | Sources | Var ID |
|---|---|---|---|---|---|
| What taxes apply to Residential Real Estate? | C.1 | ||||
| Tax on property (home-owners) | Yes | Yes | Yes | Deloitte | C.1.1 |
| Property transaction taxes (purchase/selling) | Yes | Yes | Yes | IRD NZ | C.1.2 |
| Tax on mortgage interest pmts | Yes | Yes | Yes | IMF | C.1.4 |
| Tax on capital gains on property | Yes | Yes | Yes | IMF | C.1.5 |
| Are there tax benefits on rental properties? | Yes | Yes | Yes | ANZ | C.2 |
| Describe tax benefits (if any) from C.1.2 | Under the bright-line test, if a residential property is sold at a loss, the loss will be "ring-fenced". This means you can subtract the "ring-fenced" loss from income you earn on a future property sale and pay less tax. | Expenses you incur to generate your rental income may be tax deductible | IRD NZ | C.2.1 | |