PHOTO: ANZ – FILE
Property investors at both banks will now be required to stump up a 30 per cent deposit rather than the current 20 per cent in the the wake of the Reserve Bank of New Zealand’s announcement yesterday that it is considering the reintroduction of loan-to-value (LVR) restrictions in March 2021.
“It’s in everyone’s interests for residential property prices to be sustainable long term, and for home ownership to be accessible to as many Kiwis as possible,” Ben Kelleher, ANZ NZ managing director of personal, told the NZ Herald.
“Today we’ve made the decision to increase the deposit required by property investors to 30 per cent, up from the current 20 per cent for new home lending applications from 7 December.
“As a responsible lender it’s important for us to help customers make good borrowing decisions, and that customers have a level of borrowing they can comfortably pay back. Covid-19 has made the housing market and lending decisions more complex, and we believe that any steps we can take to increase balance and sustainability in the market is the right thing to do.”
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