Understanding 'As is where is' Properties

Looking at buying a home, but it's listed 'as is, where is'? In this blog, we dive into what that means for you and your purchasing ability.

"As is where is" properties have become increasingly common in New Zealand's real estate market.

These properties are typically sold with no insurance, and could entail various conditions, ranging from earthquake damage to being part of a mortgagee sale. These properties might also be associated with events such as a deceased estate or other situations that prevent conducting open homes.

The term "as is where is" implies that the property is sold in its current condition, which includes all disclosed issues noted in the sales and purchase agreement. Due to the perceived risks involved, many banks are hesitant to offer lending on these properties, leading borrowers to seek non-bank lenders who exhibit a higher appetite for financing such transactions.

Lending terms for these properties vary significantly and are usually assessed on a case-by-case basis. Some banks used to lend up to 50% of the land value for "as is where is" properties but have since halted such practices due to reputational risks associated with these sales. They fear potential adverse events occurring on the property and the resultant reputational damage.


If you are a first home buyer, you must have a high deposit to be eligible to purchase - banks won't lend for you if you only have a 5% deposit, or if the property cannot be insured - if you are looking at purchasing one, make sure you have enough cash to make the necessary repairs or a significant deposit - only then will you be able to make an offer.

For individuals seeking finance against a property they own, which is insured, to purchase an "as is where is" building, banks may still assess these scenarios individually. However, banks generally remain cautious about lending directly for the purchase of these properties. Non-bank lenders, on the other hand, exhibit more flexibility and openness in providing financial assistance for "as is where is" properties. Typically, they require a minimum deposit of 25% to 30%, with the deposit percentage contingent upon the borrower's intentions and the exit strategy for the property.


If you are a first home buyer, you must have a high deposit to be eligible to purchase - banks won't lend for you if you only have a 5% deposit.

Whether the intent is to repair, refurbish, and secure comprehensive insurance or to use the property for rental purposes, the deposit requirements and lending feasibility hinge on the individual case. The key takeaway is that "as is where is" property transactions usually involve various factors that influence lending criteria and thus are subject to a case-by-case assessment.

At NZ Mortgages, our expert team assists buyers in navigating these complexities. We understand the nuances of "as is where is" properties, offering tailored guidance on financing options and feasibility. With a keen eye on individual circumstances, we help clients secure suitable lending solutions.

Contact our team at NZ Mortgages for personalized advice on financing 'as is where is' property purchases.

Keywords: "As Is Where Is" Properties, Financing, Real Estate, Property Market, New Zealand, NZ Mortgages