ANZ adjusts deposit requirements
The Reserve Bank’s easing of the LVRs has prompted New Zealand’s biggest bank to follow suit and loosen up its lending requirements.
Thursday, December 21st 2017, 12:01AM
by Miriam Bell
From 1 January 2018 the LVRs will be relaxed to allow banks to allot 15% (rather than 10%) of their new mortgage lending to borrowers with deposits of less than 20%.
Banks will also be able to allot 10% (rather than 5%) of their new mortgage lending to investors with deposits of less than 35%, as opposed to 40%.
Now, in keeping with the Reserve Bank’s move, ANZ has announced that from 3 January 2018 their mortgage lending policy will reflect the easing of the LVR restrictions.
An ANZ spokesperson says their maximum LVR will increase from 85% to 90%, which means that the bank will now consider loan applications with deposits of just 10%, rather than 15%.
The banks’ change is aimed primarily at helping first home buyers, she says.
“We know getting a deposit together for a first house can be really challenging, so this is another way we’re helping people get into the housing market.
“This complements other options to build up a deposit that first home buyers might be eligible for, including using KiwiSaver and getting help from family by using existing equity.
“Customers should come and talk to us about their home ownership goals, our staff are happy to help.”
The Reserve Bank’s LVR criteria, along with the banks’ own lending criteria, mean the lending environment remains tough, but ANZ’s move is likely to mean more opportunities for some borrowers.
ANZ’s changes to its owner-occupier deposit requirements come hot on the heels of Westpac upping its rental income allowance in its qualifying income assessments.
While the changes are small, they are the first loosening of credit that has been seen for some time.
Read more:
Westpac ups rental income allowance
| « Future of financial services | Mortgage lending bounces back up » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
