About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 6th, 6:43PM
rss
Latest Headlines

Banks already introducing tougher rules for property investors

[UPDATED - ANZ position added] Three banks, and Sovereign, have introduced tougher new LVR rules for property investors.

Wednesday, July 20th 2016, 9:57PM

Although the Reserve Bank is only consulting on introducing tougher lending rules of property investors, four lenders have already implemented the proposed changes. 

Westpac was first out of the blocks and it has been followed by ASB, Sovereign and SBS in introducing a maximum LVR of 60% for all new property investment loans.

ANZ chief executive David Hisco says in an opinion piece published in the NZ Herald that the central bank should "heavily increase LVR limits for property investors."

"The Reserve Bank wants most property investors around the country to have 40% deposits in future. We think they should go harder and ask for 60%. Almost half of house sales in Auckland are to property investors. Taking them out of the market will be unpopular amongst investors but it may end up doing them a favour.

"Of course this would mean less business for us banks but right now the solution calls for everyone to adjust."

Westpac says, in a communication to mortgage advisers, that it is making changes to its lending policy to ensure "we are positioned for the new restrictions, announced by the RBNZ on Tuesday." It says:

  • All property investor applications will be at a maximum 60% LVR or higher if the combined security position includes an Owner-Occupied property.
  • Owner Occupied policy will remain the same but a 10% nationwide speed limit will apply, rather than just 10% for Auckland and 15% elsewhere.
  • There are no longer any regional distinctions between Auckland and the rest of New Zealand.

ASB has taken a similar position. ASB head of third party banking, Marc Oliver says, ASB will "no longer provide new approvals for lending >60% LVR solely secured by non-owner-occupied residential properties."

"We will consider applications that exceed 60% LVR where the customer is also providing owner-occupied residential property as security. This reflects the RBNZ’s “Combined Collateral Exemption” arrangements.

ASB will honour all existing pre-approvals above 60% and documented loans for non-owner-occupied property issued before July 21 until their expiry date. "To comply with the RBNZ changes, these are not to be rolled over at the end of their expiry date and customers should be advised of this."

SBS Bank has taken a similar position.

ANZ this has also made changes. They are:

  • A maximum LVR of 85% applies for all owner-occupied home lending across NZ (previously 85% Auckland and 90% rest-of-NZ).
  • A maximum LVR of 60% applies for residential investment lending across NZ (previously 70% in Auckland).

"We intend to honour all our existing pre-approvals, and any renewals will be subject to the new policy," ANZ says in a statement.

"While the Reserve Bank has announced it will be consulting on new LVR restrictions, we have made changes in the spirit of the RBNZ announcement.

We believe the changes are a sensible and responsible response to market conditions."

Tags: ASB Mortgage Rates SBS Sovereign Westpac

« RESIMAC in merger talks with fellow non-bank lenderBanks care more about income than equity »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 ▲4.05 4.49
ANZ Special - 3.55 ▲3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide ▼5.65 ▼4.75 ▼4.75 -
Credit Union North 6.45 - - -
Credit Union South ▼5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 4.14 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.39 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.39 3.45 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 4 December 2019 9:11am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com